Kitces Nerd’s Eye View: The Latest In Financial #AdvisorTech

Kitces Nerd’s Eye View: The Latest In Financial #AdvisorTech

By Michael Kitces

Flyer’s recent fixed income integration with Tamarac was highlighted in Michael’s Kitces’ August 2020 issue of the Latest News in Financial #AdvisorTech – where he looks at the big news, announcements, and underlying trends and developments that are emerging in the world of technology solutions for financial advisors.

This month’s edition welcomes new co-author (and AdvisorTech guru) Craig Iskowitz, and kicks off with a look at the emergence of “AdvisorTech” as a financial technology software category unto itself.

Key Takeaways:

Envestnet Deepens Flyer Integration To Improve Tamarac’s Fixed-Income Trading For Large RIAs.

There is still a need by many RIAs to purchase individual bonds for different client situations and economic environments.

Most smaller RIAs lack the asset flows to justify a dedicated fixed income trader with specialized trading software, so they usually manage their bond strategies in Excel and trade through their custodian’s website.

But this requires significant manual effort, introduces inefficiencies into middle and back office processes, and bifurcates portfolio management between how bonds are managed versus the clients’ equities, mutual funds, and ETFs.

Which in turn helps to explain why smaller advisory firms tend to use fixed income ETFs and mutual funds, instead of going to the trouble of buying individual bonds in the first place.

But RIAs using Envestnet’s Tamarac platform will now have access to advanced fixed-income trade processing via Flyer’s Co-Pilot order management system (OMS), which is now available for all Tamarac clients with deeper integration that should provide a more comprehensive, seamless, and advanced advisor trading experience.

To read the full article click here.


If you liked this article, you also might like The Hidden Costs of Trading.