Envestnet Proposal Generation: How to Use with Riskalyze

Hundreds of advisors whose broker-dealers use the Envestnet proposal generation and investment platform are also passionate Riskalyze users. So, what’s the easiest way to use Riskalyze with your clients, and then seamlessly generate your proposal documents on Envestnet? Check out our instructions below!

1. Click Create Proposal. Select the appropriate client, and title your proposal as you wish. Click Submit to continue.

2. Under Define Assets, most advisors just leave the total investment amount in cash, since they’ve already done the current portfolio analysis in Riskalyze. If you prefer to include the current assets in Envestnet, export the Riskalyze portfolio to a CSV file and import it by clicking Import Holdings. Click Continue when done.

3. Click Add Registration, choose the Registration Type and Custodian, add any other applicable data and click Submit. Click Continue when done.

4. Under Profile Client, choose the Risk Express Track and click Continue.

5. Select an appropriate Investment Objective to match the client’s Risk Number. Your broker-dealer may have established appropriate Risk Number ranges for each of your investment objective choices. Or you can establish your own appropriate ranges ( here’s a guide you can use to get started).

6. For Client Profile Documentation, most advisors choose "Existing Client — Advisor has Documented Client’s Risk Tolerance." Check the box for “Suitability Confirmation Archived” and click Continue. Then click Confirm Selection.

7. Under Select Program, choose the client’s investment priorities and click “Manually Select Program.” Check the boxes for the appropriate investment programs you used in the target portfolio you created in Riskalyze. Then click Confirm Selection.

8. Under Select Asset Allocation, choose the Manual Selection Tool. Remove categories and use “ALL PRODUCTS” if needed, but select the asset allocation matching the target portfolio you created in Riskalyze. Once you’ve completed and reviewed the asset allocation, click Confirm Selection.

9. Adjust your fee schedule as necessary, choose account funding options, select your proposal document options and then click Generate Proposal Document.

Congratulations! You’ve used your broker-dealer’s Envestnet proposal generation and investment platform to generate a proposal compatible with your client’s Risk Number based on quantitative, objective math. You should feel confident that your investment selection will have greater alignment with the client’s objectives, needs and risk tolerance than ever before.

Riskalyze Risk Number Mapping to Envestnet Investment Objective (7-point Scale):

• 1 to 39: Capital Preservation
• 40 to 47: Conservative
• 48 to 56: Conservative Growth
• 57 to 66: Moderate
• 67 to 75: Moderately Growth
• 76 to 83: Growth
• 84 to 99: Aggressive

Riskalyze Risk Number Mapping to Envestnet Investment Objective (5-point Scale):

• 1 to 40: Capital Preservation
• 41 to 53: Conservative
• 54 to 68: Moderate
• 69 to 81: Growth
• 82 to 99: Aggressive