A Wholesaler’s Guide to Using Stress Tests to Amplify AUM

Picture this: you’re in a financial advisor’s office, discussing your fund’s highlights and strengths. Then, a familiar question arises: “What happened in…?” It’s a query that has been flung at wholesalers more often than pizzas in a lunch and learn.

Traditionally, the answer would be, “I’ll have someone run that report and get back to you,” leaving that advisor’s curiosity temporarily suppressed, but now you need to hope that the advisor opens the email when they get the analysis later on. 

Now, your answer is just a click away with Stress Tests on YCharts.

Understanding Stress Tests for Historical Fund Analysis

Stress Tests offer on-demand, detailed performance analysis of any security during key market events, enabling swift and efficient fund comparisons right on your screen. Using the Invesco QQQ Trust (QQQ) for example, you can access an insightful overview of the fund’s performance directly from the fund’s quote page during preset timeframes.

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Stress Tests are an on-site solution to those unexpected questions about fund performance during the market’s most turbulent periods. This tool offers a detailed view of any security’s performance, simplifying fund comparison and stress test analysis.

How Can Wholesalers Use Stress Tests

Imagine an advisor wants to hop into a proverbial time machine, journeying back to the rollercoaster ride of the 2008 financial crisis or reliving the bullish recovery of 2009 and the decade that followed. Perhaps they’re interested in something more recent, like the tumultuous 2020 Coronavirus Crisis or last year’s Inflation drawdown. 

Whatever it may be, the Stress Test tool equips you with a financial DeLorean that offers an immediate illustration of your fund’s performance across various market conditions. Wholesalers can use Stress Tests in real-time during meetings, immediately pulling up historical periods and tickers as they come up in conversations with advisors.

Moreover, selecting a certain period in the Stress Test tab loads the visual automatically in Fundamental Charts. This gives you an enhanced level of customization so you can tailor the chart you’re presenting to the advisors in the presentation.

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Looking to assert your fund’s superiority against a competitor? Simply search for a competitor’s strategy, and you can immediately compare your fund’s performance during these timeframes.

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Furthermore, if you’ve created a Model Portfolio with an advisor’s holdings, you can utilize the Stress Tests to compare portfolio statistics with and without your fund. By doing this, you can provide an advisor with concrete evidence that your fund will improve their clients’ portfolio.

Harnessing Stress Tests for Compelling Meeting Handouts

With the drag-and-drop Stress Test modules, you can leverage Stress Tests in Report Builder to emphasize significant market events where your fund outperformed, providing a compelling narrative for your fund’s performance.

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In addition, you can prepare in-depth analysis and export the stress test data as a PDF so you can walk into your meetings armed with the quantitative muscle that fuels meaningful discussions.

Whether you’re showcasing fund performance during critical market events, conducting fund comparisons on the fly, or creating data-driven narratives for advisors, being able to perform an on-site Stress Test is a valuable tool for every wholesaler.

So next time the question “what happened in…?” comes up, you’ll no longer need to promise a future answer. You’ll be able to provide immediate, convincing responses backed by verifiable performance data, turning uncertainties into opportunities for deeper engagement.

Connect with YCharts

To learn more, schedule time to meet with an asset management specialist, call us at  (773) 231-5986, or email hello@ycharts.com. 

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Disclaimer

©2022 YCharts, Inc. All Rights Reserved. YCharts, Inc. (“YCharts”) is not registered with the U.S. Securities and Exchange Commission (or with the securities regulatory authority or body of any state or any other jurisdiction) as an investment adviser, broker-dealer, or in any other capacity, and does not purport to provide investment advice or make investment recommendations. This report has been generated through the application of the analytical tools and data provided through ycharts.com and is intended solely to assist you or your investment or other adviser(s) in conducting investment research. You should not construe this report as an offer to buy or sell, as a solicitation of an offer to buy or sell, or as a recommendation to buy, sell, hold, or trade, any security or other financial instrument. For further information regarding your use of this report, please go to: ycharts.com/about/disclosure.