Tate Haymond, Chief Revenue Officer for d1g1t, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss building a wealth management platform with alternatives in mind.
d1g1t offers a wealth management platform designed with the newest technology, surpassing the industry’s original platforms. d1g1t’s team came from the institutional investment side, which adopted alternative investments much earlier than private wealth. Started nine years ago, the platform was initially designed to include APIs, cloud computing, and accounting for alternative investments.
Haymond notes that the platform includes functionality for operations, client experience, and CRM integration. Operations functionality includes trading and rebalancing, billing, performance reporting, portfolio management, models, and compliance. It is essential to create a great user experience for both clients and advisors. Clients want to view all their accounts on a single app, and advisors need to have access to the same tools as their clients.
From the product’s inception, the database was designed to include reporting for alternative investments. Because the returns provided by alternative investment managers are not all calculated the same way, d1g1t calculates the returns to alternative investments using a consistent methodology using the cash flows from each fund. Being able to calculate returns directly from cash flows allows for a total portfolio IRR that integrates returns for stocks, bonds, and alternative investments together. The platform also enables the tracking of non-traded assets, such as directly held real estate, allowing advisors and clients to view the client’s entire wealth.
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