In light of recent market events, investors are feeling uneasy and want their questions answered in a data-driven, objective and timely way. Here are three ways technology and data can help you proactively manage client expectations when markets are volatile.

1. Let data inform emotional decisions

When clients are anxious and making emotional decisions, accurate and timely data are foundational to your conversations. Unfortunately, a pervasive lack of holistic data is a problem that has plagued investment managers for years, driven in part by lack of industry standards, and reliance on legacy systems and manually updated spreadsheets.

There is a clear need to give clients more data-driven visibility into their portfolios, both broadly and deeply, particularly in the high end of wealth management where the problem is most exaggerated. Access to data from disparate sources – and the ability to quickly turn that data into insights – are essential to truly supporting your clients.

Even seasoned clients, who have been through multiple market cycles, still fight the instinct to try to time the market or, worse, move to cash. Technology is an essential tool for keeping your clients focused on long-term, strategic investing, and ensuring you’re prepared for those all-important phone calls.

Time in the Market vs. Timing the Market

A panic sell-off following the biggest drawdowns in 2019-2021 would’ve negatively impacted investors, while staying the course rewarded their patience. Data Source: Yahoo Finance1

2. Model and analyze portfolios for risk exposure

With software integrations like portfolio modeling, you can model and analyze portfolios in a forward-looking way and help your clients focus on the longer term. Run scenarios using different strategies and assumptions and build more resilient portfolios for your clients. If you’re still relying on spreadsheets or other outdated tech, you’re simply not equipped to meet your clients’ needs in moments of market panic.

3. Use technology to focus on relationship management

The most important thing you can do is be available to your clients, a challenge if you're struggling to find answers for them at the same time. According to a 2022 McKinsey study, “wealth managers are unlikely to be able to serve modern clients effectively without a digitized operating model.”2

Market disruption brings with it a flood of client requests for information and reassurance. The ability to access investment data quickly and efficiently increases transparency in your client relationships and allows you to reaffirm or revisit your strategies as needed. Ultimately, technology empowers you to ease client fears and remain resilient regardless of the market environment.

Addepar allows us to do two things: Give our clients a highly customizable way to view all of their investments and performance, and give us an excellent way to track the various components of our business.

Ben Sax Partner/Private Wealth Advisor, KORE

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. S&P 500 data, retrieved from Yahoo Finance, August 31, 2022.

  2. Analytics transformation in wealth management. McKinsey & Company, 14 Feb. 2022.

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