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Rebalancing Portfolios at Scale with Confidence


“For many advisory firms, portfolio rebalancing technology is one of the single most important pieces of technology that they have.”[1] Michael Kitces

As a result of the current economic drawdown sparked by the spread of the coronavirus, you may be rebalancing portfolios to bring them back in line with client risk tolerances and financial objectives.

In a recent article, Morningstar affirms the importance of regular rebalancing.[2] The analysis reveals that rebalanced portfolios recover more quickly than buy-and-hold portfolios when markets rebound. As part of their research, the Morningstar team modeled portfolio performance after the two recessions of the 2000s.

The results demonstrate that rebalanced portfolios recovered 14 months faster from the dot com bust and six months faster from the 2007 financial crisis than similarly constructed buy-and-hold portfolios.

With so many clients concerned about the swings in the market, many RIAs are challenged to rebalance multiple portfolios all at once. This can be a time-intensive, manual process full of potential mistakes.

Leveraging the Power of Envestnet

Fortunately, the Envestnet platform allows you to rebalance thousands of accounts and households in minutes. Should this power concern you? Not with help from LibertyFi’s team of consultants. We’re experienced at helping clients get the most from their investments on the Envestnet platform.

Using our best practices for global trading, we can streamline your trading process while increasing your peace of mind. We provide guidance to help ensure that your trades are in good order and reconciled the next day by reviewing:

  • Non-tradeable accounts
  • Trade settings prior to generating trades
  • The number of accounts included in the trade and accounts with exceptions
  • The trade blotter sorted by the number of shares, grouped by ticker and by model
  • Outlier trades only selling or buying 1 or 2 shares
  • Trades implemented by model change or rebalance
  • Proper review of trades that are pending, executed, or rejected.

Contact Us for Help

We have deep expertise helping growth-oriented RIAs drive revenue and scale their businesses with the Envestnet unified advice platform of integrated solutions. Our personalized consulting services include evaluating clients’ business processes and their supporting technologies, implementing the Envestnet platform, streamlining operations, and providing middle-office support.

If you need help ensuring that your critical and time-sensitive trades execute correctly, don’t hesitate to contact our consultants at advisorsupport@libertyfi.com.  

[1] Michael Kitces, “Advisor’s Guide to Choosing the Best Portfolio Rebalancing Software,” Kitces.com, Last accessed on April 1, 2020, https://www.kitces.com/blog/best-portfolio-rebalancing-software-comparison-review-features-and-costs/.

[2] Adam Millson, Jason Kephart, CFA, “Here's Why You Should Rebalance (Again),” Morningstar.com, Last accessed on March 31, 2020, https://www.morningstar.com/articles/974578/heres-why-you-should-rebalance-again.