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Portfolio > Asset Managers

Riskalyze’s New Autopilot Platform Lets Advisors Leave Daily Hassles to the Robots

By Emily Zulz

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Autopilot, an automated platform for advisors by CLS Investments and Riskalyze, has officially launched.

Announced in February and in testing mode since April, the asset management platform is now generally available.

While advisors have been using Autopilot with some clients in the test phase, they can now make the platform live within their practice and offer it with all their clients.

In the three months since its pre-launch announcement, more than 500 advisors in 45 states have signed up to begin using Autopilot with their clients. 

On Thursday, the day of the announcement, Aaron Klein, CEO at Riskalyze, told ThinkAdvisor that “the inbound interest [is] pouring in today.”

“The interest has been very, very powerful, and I think we’re just starting to scratch the surface,” Klein said.

Autopilot aims to provide advisors with their own private-labeled automated asset management engine that will reduce both the cost and complexity of serving clients.

A joint venture of CLS Investments, a third-party money manager and ETF strategist, and Riskalyze, which advisors use to generate a “risk number” and align portfolios with clients’ risk tolerance, Autopilot gives clients instant access to the two companies’ money management and analytics expertise.

The platform features include eight low-cost ETF portfolios, automated trading and rebalancing using CLS’ dynamic asset allocation, and a service team handles client transfers and withdrawals.

The firm charges advisors 25 basis points to manage the portfolios through the automated platform.

“Advisors today are spending 50, 60, 70 basis points on their clients’ money trying to manually manage the money and provide all of that client service,” Klein said. “What’s incredible about Autopilot is that for 25 basis points that advisor gets to put all of their hassles of their business on autopilot – the trading; the rebalancing; the client-service calls, you know, the pedestrian client-service calls to liquidiate some money, withdraw some money, and transfer some money in. They get to put all of that on autopilot, and they get to get back to focusing on their clients and running their business.”

Klein calls the Autopilot announcement “a big moment for advisors.”

“The Autopilot platform is pretty unique in its ability to democratize access to advice,” he said, “because, it really gives advisors the ability to profitably serve clients large and small.”

The minimum account size for Autopilot is “only $5,000,” Klein said.

“So, for example, when advisors have gone in to advise on a 401(k) plan they [are] usually … only focusing on the 5% of participants who have a lot of outside assets, but, with the Autopilot platform that advisor can profitably serve every single plan participant, which means every one of them is going to get higher quality advice overall,” he explained. “We think that’s really important for advisors.”

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