Faced with volatile global financial markets, investment managers can provide meaningful value to clients by prioritizing the use of data and technology to manage portfolio risk and liquidity. Employing new tools and ways of thinking about allocation strategies can help you increase returns while lowering risk.

Make better decisions empowered by technology

Technology is transforming the business of investing, empowering a reorganization of investment decision-making by unlocking new insights about past performance, current positioning and future trajectories. 

Technology should equip you with a clear line of sight into your clients’ conventional and alternative assets. While this has been true for very large and complex portfolios, it’s increasingly relevant for a broad range of investors. Additionally, your technology should allow you to make solid projections around cash flows, liquidity and unfunded commitments. These capabilities are critical to managing the downside of any crisis and reallocating into different risk assets in times of heightened volatility.

Integrate signals of future risk into current thinking

Advisors can leverage technology to register risk signals and empower decision-making in periods of uncertainty. Given a data-driven approach, you can run scenarios using different strategies and assumptions to build more resilient portfolios for your clients. 

With cohesive portfolio data and sophisticated portfolio modeling technologies, you can stress test for the future and manage market risk exposure, even in times of crisis. An excellent tech platform allows you to model multiple market scenarios–efficiently and accurately–through dynamic and customizable data overlays. Ultimately, you can help prepare your clients for unpredictable market conditions and navigate future storms in the coming years.

Using technology to build resilient client portfolios

  • View cohesive data
    Gain visibility into a traditionally opaque investment ecosystem and a single,
    cohesive view of even the largest, most complex portfolios in real time.

  • Model precise goals
    Model to a precise set of goals, such as target pacing, future cash needs,
    liquidity constraints and asset allocations.

  • Identify liquidity risks
    Simulate impacts on liquidity based on a variety of potential market
    conditions, and make decisions based on your client’s specific investment

Operate effectively and maintain performance in a new era of volatility

The Chicago Board Options Exchange Volatility Index (VIX) measures the stock market's expectation of volatility based on S&P 500 index options. From 2000-2007, the market experienced five volatility shocks as measured by the VIX. From 2008-2020, these volatility spikes occurred 59 times.1 

We are in a new era of extreme volatility that is leaving investors searching for new ways to achieve the same portfolio objectives.1

In the coming years, investing will be powered by new, alternative forms of data, tech and analytics that augment the advisors’ understanding of portfolios in relation to goals and investable opportunities. As a forward-thinking advisor, you can develop strategies that yield the most alpha in today’s arena, remaining calm and resetting expectations to reflect the current environment. As your thinking and technology evolve, you can remain nimble and, of course, profitable on behalf of clients. 

Addepar is a software and data platform that is purpose-built for professional wealth, investment and asset management firms to deliver outstanding results for their clients. We’re helping our clients unlock the power and possibility of more informed, data-driven investing and advice. Our platform was created to empower investment managers to make data-driven and more confident investment decisions, and to clearly see how assets are performing and where they might be exposed. Our capabilities include Navigator for scenario modeling and AdvisorPeak Trading & Rebalancing to address portfolio drift.


  1. Navigating Extended Periods of Market Volatility. Northern Trust Asset Management. 2020.

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