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Portfolio Rebalancing & Trading
Reduce the amount of time spent on client portfolios and create more time for clients and referrals.
Effective portfolio management begins with disciplined yet flexible portfolio construction. Whether an advisor has selected to implement a passive or active management strategy, advisors know it is a time consuming process to implement strategies consistently across hundreds or thousands of accounts. The disciplined advisor will want to understand how investment decisions are impacting their clients’ accounts when measured against the individual goals, risk tolerance and tax consequences which are different for each individual investor.
There are multiple tactics an advisor can implement to meet the particular needs of their clients, including:
- Tolerance ranges or “bands” around models – tolerance ranges can be set around an asset class or security that will permit an account to drift within an acceptable range from its target before recommending a trade. This tactic allows you to manage the number of trades while ensuring compliance to investor goals.
- Equivalent or substitute securities – the system will recognize equivalent securities for positions in a model thereby reducing trading costs.
- Restricted securities – the system will prevent trading certain securities.
- Asset location within account groups – this tactic enables you to make the appropriate allocation to individual accounts providing for preferred tax treatment in situations where you are managing assets across a “family” or “household.”
- Tactical trading – make tactical trades across all your accounts, or a subset, while taking into consideration account settings and restrictions.
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