Whilst there’s still debate about just how regularly investment portfolios should be rebalanced, most would agree that the time and costs involved can be staggering. In addition to determining the securities to be bought and sold due to either market movement or change in security allocation or weighting in the underlying investment models, advisers must also overlay specific client customisation and execute changes one by one.
The process can take days meaning that some of the portfolios at the end of the queue may miss out on some of the intended benefits of the rebalancing. Also, with the amount of manual effort involved, rebalancing is a chief concern for advisers when deciding whether nor not they have time to take on new clients.
Fortunately, faster and easier rebalancing is just one of the many benefits that come with a more sophisticated approach to managed accounts. With MA Operator’s proprietary rebalancing engine, we enable advisers to rebalance multiple tailored client portfolios in a matter of hours rather than days.
The engine even takes into account client agreed trading and screening restrictions and constraints. This means the adviser can tailor the investment program to prevent specific actions (buys or sells) on a tax effectiveness or ethical basis as per pre agreed client instruction.
Advisers are freed up to enhance service or take on new clients; brokerage costs are reduced; and the “noise” in the financial markets associated with rebalancing is reduced. Also, trades can be executed in bulk so that all clients benefit simultaneously.
It’s just one way that MA Operator supports advisers to demonstrate greater value to their clients whilst lowering the costs and effort to provide tailored services.