Top Portfolio Rebalancing Software for Financial Advisers

A routine, but important, aspect of your role as a financial adviser is regularly checking and balancing your client’s investments to match their desires and risk tolerance. For small clients, this can be a chore, but doable. For clients with tens of millions of pounds of assets under management, this can be like the (now defunct) Forth bridge repainting metaphor – it takes so long to do that by the time you finish you have to start again.

To combat this, many firms now use portfolio rebalancing software to automate or partially automate this, freeing advisors up for other tasks. So, what do portfolio rebalancing packages tend to offer, and what are some of the most popular solutions?

Standard features

All of the top five market leading tools share a large number of features. The obvious starting point is automatic rebalancing, including the ability of an adviser to set tolerance bands, minimums, and thresholds to match the individual client’s risk tolerance. They also offer multi-level approval processes for trading and compliance, tagging securities based on client preferences or restrictions, and cash management.

Other features include tax management, including wash sales and capital gains avoidance management, asset location optimization, and tax loss harvesting. All of the top solutions offer a large variety of portfolio modeling features-

Most of the top solutions will integrate easily with any back-office systems for IFAs, such as

Most popular solutions

The top performer in the rebalancing software market is iRebal, with about 10% of the market share. iRebal offers the web and desktop-based versions and prioritizes user experience. Pricing for iRebal starts at US $20,000 annually for firms with under $450 million assets under management.

An often recommended ‘middle of the road’, but still fully featured, suite is Morningstar tRx, boasting a much more competitive US $6,000 price tag on a standalone application, although this change based on the number of accounts required. Morningstar is fully featured, but integration with other software can be complicated, as Morningstar tRx cannot take custodian files directly, data can only be imported from portfolio management software.

Portfolio rebalancing software is truly exploding, and there are too many solutions to compare in a single article. Regardless of the size of a firm, or your specialization, there is a solution with a feature set that will save you time and money.