Review Detail

Blane, thanks for this article. We (www.tamaracinc.com) have been told a similar time commitment from our RIA clients regarding their time spent per account manually rebalancing. Of our ~300 client firms, we've heard an average 20 minutes per account spent when manually rebalancing. Granted, this is for a basic individual account. Time spent on more complex household accounts goes up from there.

Conversely, when using our rebalancing software, our clients can abbreviate the calculations process down to just minutes for thousands of accounts. The main time spent after the automation of the rebalancing software is that of reviewing the recommended trades and approving them. The rebalancing software then outputs pre-formatted trade files that can be easily uploaded and executed.

The time savings continues when it comes time for post-trade reconciliation, as out rebalancing system will auto reconcile the previous day's trade orders with the actual executed trades.

One other mention on time savings, is that when using a rebalancing system that allows for bands to be applied to accounts that define an acceptable level of drift per account from its target allocation, the adviser can take an "always on" rebalancing approach. This means they are conducting daily monitoring for various trading triggers and then only trade/rebalance those accounts that meet their criteria. This real-time approach, as opposed to a calendar rebalancing approach, is only possible through automation and drives additional efficiencies at the firm.

Thanks again Blane