News Articles

Investment Advisor or Securities Trader?

FinTech Revolutionizing Managed Accounts – Part 2
Streamlined Investment Management Practices

Advisors running several different client investment portfolios are faced with the burdensome task of constantly having to manage and even trade each of the portfolios on an on-going basis when they fall outside of allocation guidelines.  It used to be that each account had to be traded individually and advisors were faced with determining exactly what those allocation guidelines were and how sensitive they are to price movements on a position by position basis.

Advances in FinTech mean you no longer have to trade each and every portfolio, and then constantly recalculate position sizing.  Now you can efficiently achieve scale and seamlessly maintain hundreds, even thousands, of client portfolios. SMArtXChange Advisor as a PM (‘APM’) functionality gives advisors the ability to easily create custom portfolios of traditional and alternative investment strategies, mutual funds, ETFs, and individual equities for clients.

Each component of the portfolio can be set with specific allocation guidelines and drift parameters with sensitivity metrics can be programmed to automatically alert the advisor when the position moves out of tolerance levels. Each custom portfolio can then be deployed across multiple client accounts and further tailored with other pre-determined portfolios, exclusions, and even routing directions to meet specific client guidelines.  Any changes within a portfolio can be made once, and it will then automatically trade each corresponding client account in real-time.

Rebalancing each of these accounts is just as easy.  SMArtXChange’s proprietary rebalancer creates a complete catalog of each position that has moved outside of set thresholds, and compiles a trade order for each allocation that needs to be brought back within the pre-set parameters.  A simple click of the “approve trades” button automatically sends an order to bring each position back in line simultaneously across all client accounts.  Managing client investment accounts has never been easier.