So Many Portfolios… So Little Time
Monitoring multiple clients’ portfolios is one of the laborious chores of wealth management. Advisors must constantly check that their clients have investments that are compatible with their personal risk appetites. In volatile markets, portfolios can quickly deviate from target allocations.
A more conservative client might be associated with a model portfolio with heavier weighting in fixed income (bonds, munis, fixed income ETFs), whereas a more aggressive client might be mostly invested in equities – domestic and international. Knowing each clients’ preferred investment profile is only part of the battle for an advisor.
One of the main tasks of a wealth manager is to rebalance clients’ portfolios to their corresponding model portfolios. The reliance on spreadsheets, manual checks, and manual trade orders is still widespread. Rebalancing can be done manually if you have a dozen or so clients. When the number is in the hundreds, automation is required.
Everysk has powerful workflows that can automate the whole rebalancing process.
Everysk is a technology company specialized in automations for the financial sector. Our platform allows professionals without any coding experience to orchestrate sophisticated daily workflows. Our programmatic robots are tailored to portfolio rebalancing, risk management, dashboards and alerts, pre-trade compliance, regulatory reporting, liquidity monitoring, anti-money laundering and many other financial applications.
Building a workflow is easy: All you need to do is drag and drop workers from the library to the design canvas
Our workers are designed for financial applications. They perform tasks, such as:
- Explode the contents of an invested fund into another root fund
- Insert intra-day trades into appropriate books/sleeves from start-of-day (SOD) portfolios
- Aggregate positions coming from different brokers into a holistic portfolio
- Call our multi-asset, forward-looking calculation engine to perform risk and liquidity analysis
- Generate datalakes containing a blend of Everysk calculations and client data
- Perform complex data explorations and set dynamic criteria
- Connect with outside APIs, distribute reports and alerts using email, Teams or Slack
- Perform conditional tests, branching the logic of the workflows
…and many other tasks
Our workflows are designed to benefit from highly scalable infra-structure in the cloud. Report templates can be easily designed and can dynamically bind elements from the automation for scalable report generation and distribution.
Automating Portfolio Rebalancing
Clients can plug and play a pre-canned workflow that would automatically iterate through hundreds of portfolios, map each client to their respective target portfolio, optimize each portfolio to the proper risk constraints, and suggest the minimal trades to the advisor that would bring the portfolio back in line.
Once portfolios are uploaded and parsed by Everysk, the following tasks are performed by the rebalancing workflow:
1) Ingests metadata with constraints mapping each client portfolio to their model portfolio
2) Parses each portfolio and optimizes them with the appropriate constraints
3) Identifies trades by comparing the optimized portfolio to the original and referencing security prices to calculate trade orders
4) Runs a suite of risk analytics using Everysk’s own calculation engine including volatility, sharpe ratios, stress tests and backtests against dynamically mapped, custom benchmarks
5) Generates reports with the portfolio before/after the rebalance, a blotter of trades, and a comparison of the risk analysis pre and post optimization.
6) Sends all rebalancing trades to an OMS system via API
7) Emails the reports to the advisor
The whole process is automated, saving hours of daily work and enabling rebalances and proposals to happen quickly. All the daily tasks are securely stored in clients’ accounts and readily auditable.
A sample report can be found in the link:
Sample Portfolio Rebalancing Report
Please reach out to firstname.lastname@example.org if you would like to learn more about our automations and/or our rebalancing module.