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How Software Can Help You Grow: Part 2

Mar 2nd 2017 - by Emmett Agnew

Practice Management

In Part 1 I discussed how software is often viewed as a disruptive threat, but there are potential benefits in viewing it as an opportunity. This post looks at how modern software solutions can benefit investment advisors.

Staying Organized

When investment documents and research notes are stored and managed in email inboxes and a simple network share drive, it can be a pain to stay organized as things change and your business grows. A modern research management system makes things easier, allowing you to drag and drop emails with attachments to the appropriate strategy, company, or person, and to save multiple versions of a document without having to rename files or create new folders on a network drive. The true power of software to drive efficiency can be seen when an investment team adopts a modern workflow like this, making it easier to manage the entire research process and to distribute research results throughout the firm.

Due Diligence

With due diligence rules, you can stay on top of your due diligence and compliance requirements without the headache. Need to perform a quarterly update call or an annual onsite review with each of your approved managers? Instead of manually tracking deadlines and reminders in your Outlook calendar, RedQuarry has due diligence tracking capabilities built in, making it easy to set reminders and to satisfy requirements while simultaneously storing notes from the meetings or calls. And those notes will be easily accessible months or years from now with a quick search.

Research Analysts, Brokers, and More

While traditional RIAs might see the upside of a system like this right away, the potential benefits and efficiencies are no less applicable to other areas of the investment advisory landscape, such as advisors that work for broker-dealers. The Department of Labor has announced plans to institute a fiduciary duty rule on all advisors providing investment recommendations to clients with retirement funds. While RIAs are no strangers to such requirements, advisors in the Broker-Dealer space may not be equipped to provide proof of a solid basis for investment recommendation when the regulators come knocking. A research management system like RedQuarry is the ideal place to track research that provides such proof and to distribute such research to advisors out in the field. It remains to be seen whether the new administration will move to block the adoption of this rule, but it is almost certainly the direction that the industry is heading 1, and even non-RIA firms that provide investment advice would be wise to use a solution that makes it easier to remain in compliance and to manage an investment research practice top to bottom.

Software is Eating Our World

In Part 1 we talked about how software may be eating our world, but that doesn’t mean that you should necessarily view software as an existential threat to your business. There are a number of ways that a modern research management system can improve your business, from increased efficiency, to easier due diligence compliance, to improved management of research notes and investment documents, to enhanced communication between the research team and the client service representatives meeting with clients.

As a group of former practitioners who are passionate about high-quality investment research and who now specialize in modern technology, we at RedQuarry love talking with investment firms and figuring out ways to improve the efficiency and effectiveness of your research efforts. Drop us a line at and we’d be happy to discuss how we can help improve your business.

Other Reads

How Software Can Help You Grow: Part 1

Article Sources

[1] New York Times

RedQuarry's cutting edge research management software is used by leading investment firms around the world to manage their investment process, due diligence files, documents, reporting, and research compliance. Contact us for a demo