Incorporating good technology into an advisory firm should help improve client relationships, save time and money and improve efficiency. As I’ve mentioned before, 2015 has been a year of new technology for my business, which I’ve written about in posts like Lesson Learned: One New Piece of Tech at a Time, So Far, I’m a Happy Customer of Redtail and My eMoney Review: Good, but What’s With Monte Carlo?
In this post, I’d like to share a little more about my latest technology addition, Portfolio Lab from Kwanti.
Kwanti is not a household name as the company has not been very aggressive with its marketing, though I believe it will be in the future. I learned about Kwanti from a reader and fellow advisor, Robert Henderson, who has used the product for several years. I would summarize Portfolio Lab as an easy-to-use tool which combines the best features of several other products. Although it’s offered at a very reasonable price, there are a few limitations.
Portfolio Lab is great for analyzing portfolios that include individual stocks, mutual funds and ETFs. If you use any other type of investment, you’ll need to substitute a benchmark as a proxy or exclude it from the portfolio. Fortunately, Kwanti has a large database of benchmarks (not sure of the exact number). If you cannot find a good benchmark, but have access to historical data (three years is ideal), Kwanti will incorporate it. Obviously, this would be the best solution.