Total Rebalance Expert Releases New Industry Report on the Benefits of Automating Rebalancing

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Return on Technology Investment of $587,000 Equates to Over 46 Times the Cost of the System

Using portfolio rebalancing technology can provide a cost-effective and powerful solution

Total Rebalance Expert (TRX) announced today the release of a new industry white paper designed to quantify the return on technology investment that financial advisors can achieve by automating the portfolio rebalancing process.

The report, “Measuring the Return on Technology Investment: Total Rebalance Expert” is an update to an earlier study on the cost savings, capacity increases and business development opportunities of using technology to streamline portfolio rebalancing. The report documents various areas of savings and revenue opportunities including,

  •     Reduction of personnel hours
  •     Reduction of errors
  •     Greater quality control and consistency
  •     Greater responsiveness to client needs and market changes
  •     Greater tax efficiency
  •     Increased client satisfaction
  •     Increased client base and revenue

Based on these efficiencies and translating them into direct cost savings, increased capacity and incremental revenue opportunities and advisors can achieve on average $587,000 in savings and revenues, according to the report.

“For the majority of investment advisors, rebalancing is the most time-consuming and error-prone part of the business,” said Sheryl Rowling, CEO of TRX. “However, using portfolio rebalancing technology can provide a cost-effective and powerful solution that can transform an advisor’s business.”

According to the report, “… most advisors attempt rebalancing using only rudimentary spreadsheets and hand calculations. When rebalancing by hand, advisors are limited by capacity. The advisor must choose between increased complexity and time-consuming calculations, rebalancing less frequently or even simplifying the calculations (for example, by ignoring tax saving strategies).

Despite the evidence of the benefits of automating rebalancing, the majority of advisors are not using a portfolio rebalancing technology solution. According to several industry studies, the usage is less than 5-10% industry wide. “Many advisors are reluctant to take on new technology due to the cost and time involved as well as the uncertainty of future benefits,” said Rowling. “Thus, we completed this study to document these industry results so that advisors can feel comfortable in adopting rebalancing technology, knowing that it will pay them back many times over.”

The report, based on in-depth interviews with TRX users and a quantification of the many benefits of automated portfolio rebalancing, is available on the TRX website: .

About Total Rebalance Expert
Founded in 2008, TRX is the industry’s leading independent, portfolio rebalancing software platform. TRX provides financial professionals with a tax efficient and robust online software solution that provides advanced functionality to streamline the rebalancing process. Designed
by an industry leading CPA advisor, TRX automates the complexities involved in rebalancing portfolios, enabling advisors to save time, eliminate errors and free them up to grow their firms and better serve their clients. TRX is headquartered in San Diego, CA with an office in Kansas City, MO.

For More Information, please contact:

Karyn Davenport, Total Rebalance Expert

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