Switching to a TAMP for better support and trading
- This independent RIA made the switch from a broker dealer in 2021 to focus exclusively on the physician community. With an emphasis on AI driven models their practice of $75 million was growing at $30 million per year.
Case Study
As a newer RIA breaking away from the broker dealer world, this RIA originally selected GeoWealth as their TAMP, but realized they needed better support for trading their models, in addition to the desire to move away from model management responsibility. The lack of GeoWealth’s trade execution responsiveness caused them miss critical timing of their trades leading to hundreds of thousands in client losses and missed opportunities.
Challenges
- With technology driven models that adapt quickly to market conditions, their TAMP had service level agreements that could take up to 72 hours to process trade. That delay was costing them hundreds of thousands in losses and missed opportunity.
- With the success and growth of their business, they needed better billing support. Their prior solution processed the billing files but required them to run the actual billing. Additionally, those billing files weren’t received until the middle of the following month.
- Their prior solution wasn’t flexible with how they wanted to bill which caused them to miss out on critical tax benefits.
- They couldn’t private label third-party models in a way that promoted and highlighted their unique brand and value proposition within the doctor community.
Solutions
- With exceptional expertise in trading and a heavy investment in trading technology, UX Wealth Partners processes all their signals and executes the trades across their entire book, at multiple custodians, within seconds. That enhancement and focus on best execution has drastically improved their overall price execution and provided them with a peace of mind that their models are being managed as close to signal price as possible.
- UX Wealth Partners calculates their total advisor fees on the first business day of every month based on the average daily balance. UX Wealth Partners submits all billing files, debits the client accounts, and pays the RIA within 48-72 hours of the first billing day of each month which has drastically improved their cash flow while eliminating all of the time they spent on billing.
Results
By switching to UX, this RIA was able to significantly improve their trade execution, free up substantial time from billing, and expand their investment model offerings to meet the unique demands of their client base. As an RIA that specializes in offering custom solutions to the medical community, and an emphasis on active models, having the ability to deliver their custom investment solutions with on-demand trade execution was paramount to their value proposition and growth.
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