The client workflow is used to organize accounts, recommendations, and risk surveys for a prospect or client. It is a complete end-to-end workflow, where you begin with gauging risk tolerance and you finish with a report containing a recommendation.
Here is a step-by-step guide:
- To get started, click the "Create Client" icon on the dashboard
- Next, add the name of the client/prospect. You can also include an optional phone number or email address.
- Check the "Share Client" box if you want other members of your organization to see this client.
After you click “Save” you’ll be immediately taken to the client and launched into the setup process. The first step is to determine the client’s risk tolerance. You have several options here.
- Set the risk tolerance manually
- Take the risk survey
- Email the risk survey to the client. or
- Skip the risk tolerance entirely.
The Risk Tolerance survey is a way to determine the greatest drawdown a client can experience before needing to see recovery. This is represented as a percent loss ranging from 0-50%. For example, if the client scores 24%, that means they are hypothetically comfortable experiencing a 24% drawdown in their investments before recovering.
To learn more about the risk survey, click here.
Once the risk tolerance is either determined or skipped, you will be taken to Step 2 to enter the current holdings. On this step, you again have a few options:
- “Choose Existing Portfolio” allows you to attach an account that is already in the HiddenLevers system (usually by way of integration).
- “Create New Portfolio” lets you enter their holdings now.
- Select “Skip Holdings” if they don’t have any holdings.
You can add several accounts individually (e.g. a 401k or IRA) and they will automatically be grouped together for analysis. In this example, we will use the “Create New Portfolio” to enter the client’s holdings. At this point you will be asked the type of portfolio you would like to create. You may select between Dollar Value, Percentage or Share Quantity.
- Once their accounts are added, click “Next Step” to move onto the recommendation.
Now, we are taken to Step 3 of 4: Recommendation.
Clicking the blue "Set Recommendation" at the top will simulate selling all the assets and moving to a recommendation.
If you click "Show underlying portfolios?" you will be able to create recommendations on an account-by-account basis. In setting a recommendation, you have a few options.
- “Choose Model” lets you assign a model to the client.
- “Blend Models” lets you mix together several models.
- “Copy Existing Holdings” creates a new portfolio with their current positions, allowing you to swap out one or two holdings and keep the rest.
- “Create New” wipes out their holdings and lets you build a recommendation from scratch.
Let’s “Blend Models” to replace the IRA holdings. In this example, we've allocated 60% of the money to the Income Strategy and 40% into the Fidelity Conservative model. On the right we see a preview of their Stress Test Risk and Expected Return, which meets the Risk Tolerance we set earlier. At the bottom we see the system will apply this model mix to the $40k available in this IRA. Hitting “Create Recommendation” builds the recommendation.
In this example, we can't move the 401(k) into one of our models, so we will simply recommmend the client rebalances their holdings. Choosing “Copy Existing Holdings” brings up their holdings in the portfolio editor. For this example, we moved them from 100% equities to a 50/50 split.
Hitting "Save" takes us to Step 4 of 4: Results! Depending on your version of HiddenLevers, you will see different options.
- The first icon will be either Generate Report for a stress test report, or Generate Proposal to make a proposal. This will be the main way to get output from the system.
- “Stress Testing” is our live stress testing feature allowing you to simulate various economic scenarios on the current holdings and recommendations.
- “Risk Profile Comparison” shows you Modern Portfolio Theory (MPT) stats about these portfolios.
- “Client Mode” is a client-friendly version of the website with stripped-out menu options, while also hiding all HiddenLevers data not tied to the client. This helps keep other client information private.
Clicking out of the 4-step workflow takes you to the overall client view. Here, you can see the risk tolerance, and an overview of the stress test risk for each account. You can click any of the circle icons at the top to re-engage each step, for example, if you want to change the risk tolerance click the Risk Tolerance circle with the green checkmark. Clicking on an account name will also bring up individual actions possible for that account.
If you have any further questions, please reach out! You can email us at firstname.lastname@example.org or call 800.277.4830.