Wholesalers’ Playbook: Maximize AUM Growth with Scenarios (aka Hypos)
Imagine a time-lapse showing a seed sprouting into a tree. Now swap the seed with an initial investment, the growing tree with burgeoning wealth, and the stages of growth with investor decisions. And much like timely rain feeding a tree’s growth, contributions help transform that small seed of investment into a grand tree of wealth.
This is the essence of the Scenarios tool: a visual narrative of wealth evolution.
It’s a rewind button for financial growth, showcasing the journey of wealth one tick at a time. For wholesalers, Scenarios helps craft compelling narratives that can captivate advisors, fostering deeper engagements and helping accelerate your sales growth.
Unleashing the Potential of Scenarios
Scenarios serves as your guide to navigating hypothetical situations, a tool that brings to life the historical performance of funds or portfolios over time, taking into consideration a client’s behavior or inflation. Whether it’s a young investor starting to make contributions or a retiree considering withdrawals, Scenarios has you covered.
Consider, for example, the performance of the Vanguard Wellington Fund (VWENX) from 1993 to 2023. With Scenarios, you can simulate the journey of an initial $1 million investment undergoing a 4% annual withdrawal rate and a 3% annual rate of change. This way, you can comprehensively represent how this fund could have grown over these three decades while adjusting for inflation along the way.
But Scenarios isn’t merely a big-picture tool. It shows every aspect of an investment strategy, providing comprehensive views of withdrawals or contributions over time (illustrated by the purple bars under the chart).
The feature adds depth to your analysis, painting a complete narrative of potential investment growth. And it’s flexible enough to mirror realistic investment behaviors. You can implement withdrawals and contributions all in one visual, empowering you to convey the implications of specific actions or inflation on investment growth.
Harnessing Scenarios to Boost Sales
For the shrewd wholesaler, Scenarios is more than just an analytical tool. By transforming advisors’ hypothetical queries into dynamic, personalized visuals, Scenarios enriches your discussions and fosters deeper engagement, leading to potential sales growth.
Scenarios is an ace up the sleeve when demonstrating your fund’s historical growth versus a rival’s strategy. This tool gives you the edge by offering visually compelling evidence of your fund’s superiority and can be dynamically created during a meeting.
Have you built a Model Portfolio with an advisor’s holdings? Scenarios can help you illustrate the potential growth of that portfolio with and without your fund. This tangible demonstration of value can sway advisors to allocate assets to your fund.
Scenarios seamlessly integrate into your presentations. Use the Scenarios module in the Report Builder to craft comprehensive, compelling, customized reports for advisors. Plus, the ability to prepare in-depth analyses and export the Scenario data as a PDF arms you with robust, quantitative evidence of fund performance for your meetings in just a few clicks.
By transforming abstract hypotheticals into tangible visuals, Scenarios can foster deeper engagement and understanding with advisors, making them an invaluable asset in your quest to reach your annual AUM goal. And if you want more ideas on how to use Scenarios, check out this video.