One of the most persistent challenges for advisors is to get an accurate gauge of a client’s risk tolerance. That is one focus of Totum, a new platform created by the Los Angeles-based company Totum Wealth.
As the firm’s website notes, Totum means “all, the whole,” in Latin. The name represents the founders’ goals for the platform: to systematically illuminate the multidimensional risks in each client’s life and to generate a suitable, compelling and customized portfolio solution in minutes.
Both of the firm’s founders have experience in risk management and investment management. Min Zhang most recently was employed by Pacific Life, where she was director of investment risk management. Before that, she was an analyst for Pimco. She also helped to create Nutmeg, a consumer-facing robo advisor platform in Britain.
The other founder, Mark Cone, is also a co-founder and managing partner at Causeway Capital Management. He formerly worked as head of third-party distribution at Merrill Lynch Investment Managers and as head of distribution at Hotchkis & Wiley Capital Management.
Totum claims it is different from other tools because it takes a more comprehensive view of risk when creating a personal investment strategy for clients, one that includes a client’s health, his or her balance sheet and the industry in which he or she is employed. In addition, the platform claims to offer institutional-quality portfolio analytics tools.
According to Zhang, Totum is well suited to serve a prospect who is part of the millennial age group. “The next generation of clients demands more from an advisor,” she says.