Thanks to the market volatility and massive fluctuations that occurred during the COVID-19 pandemic, there has been a massive increase in rebalancing and tax-loss harvesting activity among advisors.
Not every advisor, however, has invested in the technology to carry out automated rebalancing or tax-loss harvesting.
With all this in mind, recent entrant AdvisorPeak has made its platform-as-a-service available to advisors new to the platform at no cost through June 30, 2020 with “no further commitment or strings attached.”
The platform, which launched in November, currently has 165 firms on board with a total of $40 billion in assets.
AdvisorPeak was built from the ground up with tax-smart householding and risk analysis that works in combination with rebalancing and trade order management.
“Another key piece was building it as an analytics-based trading platform, one that takes risk into account risk and other factors combined with market data to make decisions and make ready for pulling the trigger [on trades],” said Pete Giza, chief product officer at AdvisorPeak. He and AdvisorPeak’s CEO Damon Deru have a lot of experience in rebalancing; Giza was co-founder and CTO of rebalancing pioneer RedBlack Software and Deru the CEO and co-founder of TradeWarrior (both now under new ownership).
“With all this market volatility, an advisor will be able to set up trigger models based on their core models,” said Giza. For example, setting drift to a certain percentage parameter and have it the system execute trades.
“Of course, all the longer-term analytics give you an idea of how things have performed—how your actions performed—over time. This allows you to perform proactive TLH and create tax alpha,” Giza said. Another bonus advisors will see with free use of the platform is in getting real time pricing and easy access and exposure to some of the firm’s partners.
As for partners, on the custodial side that includes the big four (maybe still to be three) players as well as National Advisors Trust, LPL Financial, Shareholders Services Group, and TradePMR. In addition, AdvisorPeak integrates with nine of the top portfolio accounting systems, including Orion, PortfolioCenter, BlackDiamond (and other SS&C/Advent offerings), among others.
“As a former advisor, I know firsthand the value of having powerful rebalancing software in order to efficiently take advantage of rebalancing and tax-loss harvesting opportunities in volatile markets,” Deru said. “We realize many advisors don’t have the necessary software in place to manage their client accounts in a streamlined manner, which is why we decided to make our software available to all investment advisors at no cost through the end of the second quarter. It’s our way of helping advisors through this difficult period.”