Total Rebalance Expert, which makes software for rebalancing investment portfolios, has acquired PowerAdvisor, a portfolio management software company. What’s going on?
Sheryl Rowling, the owner of TRX, says PowerAdvisor has about 100 RIAs using its software, covering about 300 investment advisors.
PowerAdvisor, a portfolio management app made by a company called Cornerstone Revolutions, was born about a decade ago as “PowerBroker.” It was written up by the advisor tech press in 2004 as the next big thing for RIAs and named “rookie of the year.” But the system never gained much traction. Despite several management changes and an investment from an advisory firm that thought it could turn PowerAdvisor into a success, the company never attracted a following big enough to reach critical mass and ba able to fund software development, sales, and service. But it was not for lack of trying.
This Website Is For Financial Professionals Only
PowerAdvisor was an ambitious effort with lots of add on services and features. While TRX has already taken down PowerAdvisor’s website marketing material, an archive of the PowerAdvisor website
tells us this:
- PowerAdvisor portfolio management software allows you to manage client assets and provides a toolset for custodial data processing, performance measurement, reporting, compliance and client billing.
- PowerOffice provides full service data management and back office services to investment advisory firms, aiming to boost productivity and reduce overhead costs for firms using PortfolioCenter, Centerpiece and Advent/Axys.
- PowerTrade Portfolio Rebalancing and Order Management System, automates asset allocation, portfolio rebalancing, and trade execution.
- PowerAdvisor also a client web portal system for client communication and document exchange.
Rowling, who I have praised in the past for her good work
on behalf of advisors, won’t say how much she paid for the company. But I’m sure it was an attractive price. And the purchase makes sense for Rowling. Her vision, as bulleted out in an email to me yesterday:
- customizable, flexible portfolio accounting software, scalable for any size firm.
- unlimited models using security type, asset class, industry, sector or individual securities.
- client billing with full customization.
- portfolio data—snapshot view, tax lots, unlimited clients/accounts/groups, multiple data input and unlimited contact types
- 18 audit-ready compliance reports
- cost basis tracking, direct custodial interfaces.
- intuitive user interface, full security tools and features, updated position pricing options, robust reporting options with over 60 reports including flexible formatting, firm logos and batch reporting.
“The goal is to provide leading-edge best of breed solutions to advisory firms of all sizes at reasonable costs, with streamlined implementation and user-friendly operation,” she says. “With combined technology, TRX will be able to provide robust, tax-efficient rebalancing to firms that want direct integration with their custodian as well as firms without portfolio accounting software. We will also be able to offer attractive pricing to those firms wanting to utilize multiple products and/or services. We are committed to remaining open architecture.
“As a personal believer in best-of-breed technology, our software solutions will always be available and integrated with outside solutions that individual advisors feel is best for their firm,” adds Rowling.
“We will handle everything from the data aggregation and reconciliation to client reporting, fee billing, rebalancing and trading at a fraction of the cost of full time employees or a TAMP,” says Rowling. “This gives advisors a great ‘succession plan’ as well. When they have a streamlined, well documented processes, it creates value in their business and makes for a smooth transition.”
The purchase will make sense and provide value to RIAs if Rowling can execute on that vision and deliver a portfolio management software system tightly integrated with TRX's rebalancing tool and priced at a relatively low cost when compared with similar products like Tamarac.
TRX started out a few years ago providing rebalancing only for PortfolioCenter. It has since added other PMS apps that can utilize TRX rebalancing to manage portfolios for tax efficiency. Rowling says the purchase of PowerAdvisor will not impact those integrations.