Revolutionizing Client Relationships: A Guide to Using ChatGPT and YCharts for Financial Advisors

Financial advisors are constantly seeking ways to improve client communication and provide personalized recommendations. Based on our latest research, 88.2% of advisors’ clients consider their advisors’ frequency and style of communication when deciding to retain their services. With this in mind, it’s never been more important for advisors to have established communication strategies.

And for advisors who may not be native to creating content or communication materials for their clients, ChatGPT arrived at the right time. From deciphering “Fedspeak” to passing Wharton’s MBA exam, ChatGPT has been everywhere in the news. This article aims to spark your imagination on how you can use YCharts and ChatGPT in your practice to create compelling content and build meaningful client relationships. 

Disclaimer: ChatGPT should not be blindly trusted, and remember that all client communication must be approved by a compliance principal at your firm

Summarize YCharts Content for Clients and Yourself

YCharts produces a Monthly Market Wrap that provides additional data about the investing landscape and macroeconomic trends. If you don’t have enough time to read through it all, you can ask ChatGPT to summarize the whole article for you. Just use the prompt “summarize this article:”, paste the text from the article into the chat, and voila!

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Now, you have a bulleted summary of the article, giving you more time to dissect the visualizations in the piece, like the one ChatGPT referenced about the cost of missing the best days in the market.

Download: The Top 10 Visuals for Clients and Prospects

Not to mention, you could further simplify the summary and quickly repurpose it for a monthly newsletter for your clients. Here’s a prompt you might use: 

Summarize and repurpose this article for a financial advisor’s newsletter to clients that have an average reading level of an 8th grader:  (pasted article)

Using a prompt like this lets you quickly and consistently create communication material for use with clients. As we’ll explore later in this article, you could further personalize this email for some of your higher net-worth clients based on their interests.

Inform Your Investment Committee on Market Developments with YCharts Fund Flow Reports

In addition to the Monthly Market Wrap, YCharts produces monthly and quarterly Fund Flows reports to show investors and advisors how money is moving in the market. In the first quarter of 2023, the Money Market funds saw some of the largest inflows, as $439B entered those funds in the first three months of 2023. Conversely, Equity funds saw $45.6B in outflows in Q1.

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With this data, an analyst can use ChatGPT to provide commentary you can share with the investment committee. Here’s a prompt you might use: 

You are a content creator for a financial advisor, and I need you to craft an email providing a monthly market update for my investment committee based on this fund flow data (numbers are in millions): Money Market – $439,437, Fixed Income – $86,186, Miscellaneous – $4,145, Commodities – ($1,058), Convertibles – ($1,865), Alternative – ($3,150), Allocation – ($6,723), Equity – ($45,630)

And here’s an example email that ChatGPT would return:

Next, you can add images from the quarterly fund flows report, and within minutes you’ve created a template for a monthly email to the committee.

You can use the exact message that ChatGPT provided or add some of your own language to make it more relevant to the presentation you’re preparing for the committee. 

To take this strategy to the next level, let’s say that golf is a major hobby for some of the members of the committee, and you want to make this email more personable to them. You could ask ChatGPT to rewrite the commentary using golf as a theme for the results. Here’s the prompt you can use: 

You are a content creator for a financial advisor, and I need you to craft an email using golf as a theme to provide a monthly market update for my investment committee based on this fund flow data (numbers are in millions): Large Value – ($3,168), Large Blend – $12,282, Large Growth -($10,803),  Mid-Cap Value – $206, Mid-Cap Blend – $632, Mid-Cap Growth – ($2,658), Small Value – $954, Small Blend -($49), Small Growth – ($773)

And here’s an example response generated by ChatGPT:

Even if your investment committee likes to see more in-depth analysis, within a couple of seconds you’ve got an email template that discusses Equity Style flow trends, complete with an Arnold Palmer quote. 

Create Proposals for Prospects

Using Model Portfolios, Report Builder, and Fundamental Charts in conjunction with ChatGPT creates a powerful opportunity to present strategy proposals to clients or prospects. 

Starting with Model Portfolios, you can create content centered around your strategy’s outperformance compared to a prospect’s current portfolio by using ChatGPT. For starters, you can use a chart to visually represent your portfolio’s outperformance to get a prospect’s attention early in the correspondence. 

Download Visual | Modify in YCharts

Then build a comparison report and use any data points that you believe support your strategy’s superiority. You can use this prompt to highlight the differences found on the fundamentals page of the report you built: 

“As a financial advisor, you have been tasked with creating a more effective investment strategy for a prospect who has little knowledge of financial metrics. Using the following data, write a concise and easy-to-understand proposal that highlights the key differences between the prospect’s current strategy and your proposed strategy:

3-year normalized performance: Proposed strategy 37.23% vs. Current strategy 27.58%

Dividend Yield: Proposed strategy 2.43% vs. Current strategy 2.32%

Expense Ratio: Proposed strategy 0.20% vs. Current strategy 0.46%

Weighted Average P/E Ratio: Proposed strategy 17.71 vs. Current strategy 18.56

Weighted Median ROE: Proposed strategy 28.76% vs. Current strategy 24.17%

Weighted Median ROA: Proposed strategy 11.15% vs. Current strategy 8.11%

Yield to Maturity: Proposed strategy 5.70% vs. Current strategy 5.48%

Effective Duration: Proposed strategy 4.694 vs. Current strategy 5.075”

And here would be an example result:

In the end, it’s up to you to choose how to combine YCharts and ChatGPT. But if you’re having trouble generating content ideas or simply don’t have the time, combining ChatGPT’s ability to churn out content with YCharts’ client communication tools should at a minimum give you a template you can build on to share content with clients or prospects consistently.  

YCharts has vast data and visuals covering stocks, funds, and economic data. The examples above are just a few ways you can leverage YCharts to create engaging content with help from ChatGPT. As a reminder, always double-check the content for accuracy and have all client communications approved by a principal before publishing. 

Connect with YCharts

To get in touch, contact YCharts via email at hello@ycharts.com or by phone at (866) 965-7552

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Disclaimer

©2023 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 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