Commonwealth Launches New Management System
Commonwealth Financial Network, Waltham, Mass., is launching Commonwealth Model Management, the firm's latest trading platform for the systematic managing and rebalancing of client portfolios.
The system is integrated into Client360, Commonwealth's client management platform, and is designed to allow advisors to easily rebalance hundreds of accounts.
Commonwealth Model Management is being launched to enable advisors to create models from scratch, from Commonwealth/Ibbotson templates, from other models, or from an account's existing holdings. The models can be set up using tickers alone or tickers and asset categories. Advisors will be able to set drift variance bands and minimum trade amounts on a model level, and advisors can assign an unlimited number of accounts to a model.
"This new system gives our financial advisors the ability to scale their investment management function in a more streamlined fashion," says Darren Tedesco, managing principal of innovation and strategy for Commonwealth.
"The system is integrated with our centralized alerting system, allowing advisors to proactively monitor model portfolios so they can react to drift movement quickly, potentially reducing risk for their clients and systematically approaching a 'buy low, sell high' methodology," he adds.
The new system will create product equivalences, such as Apple equals Google, to help reduce unnecessary trades and ticket charges and to reduce the number of models that advisors need to create. Drag-and-drop functionality will allow advisors to order the asset categories within a model by dragging and dropping them into the appropriate space.
Pershing Introduces Pricing Guidebook
Pershing LLC, a BNY Mellon company, is creating a guidebook, Pricing Strategies to Create Growth: An Independent Advisor's Guide.
The publication examines the leading pricing strategies among firms and provides best practice guidelines.
Pershing is also launching the "Pricing Your Advice" tool, which will enable firms to explore the implementation of different models to price their services.
RydexShares Launches ETFs
Rydex, a provider of ETF and alternative investments, is launching two new equal-weight ETFs: the Rydex S&P SmallCap 600 Equal Weight ETF and the Rydex S&P MidCap 400 Equal Weight ETF.
The two offer broad exposure to companies in the S&P MidCap 400 Equal Weight Index and the S&P SmallCap 600. Both equal-weight ETFs invest in the same stocks as their cap-weight versions, have equal exposure to each stock and are rebalanced quarterly.