Are these rollouts significant? We think so. Clearly, advisors are finally acknowledging the value of more sophisticated rebalancing software. Furthermore, more products coming to market means that software developers believe we are still in the early stages of a big growth cycle.
Odds are that they are right. New products coupled with strong demand should lead to lower prices, which in turn should lead to greater demand. Tests suggest that rebalancing software can help an advisor save 90% of the time he would otherwise spend rebalancing manually for every household. That can save money.
Despite these trends, not all is rosy. It can be frustrating and time consuming for an advisor to change applications and providers. The benefits of upgrading, however, have never been more compelling. We expect these trends to have a lasting positive influence on the efficiency and profitability of firms both large and small. With the overall economic outlook murky at best, a little good technology news could not come at a better time.