Functions

• Rebalancing across a family of accounts or per account
• Transitioning from per account to family level
• Cash Management
• Tax Loss Harvesting
• Gains Distributions
• Replace Securities
• Electronic Ticket Generation and uploads to multiple custodians
• Electronic check box for Approvals

Environment

• Desktop / Server in Customer's Facility
• Advent or Portfolio Center
• Tickets to multiple custodians [TD AMERITRADE, Schwab, Fidelity, Natco, FiServ, Pershing, (others can be added easily)

Rebalancing Features

• Lot level or fund level rebalancing
• Accounts with restricted number of classes considered (Annuities, 401K)
• Sepearate Managed Accounts (SMA)

All security types considered

• Individual stocks
• Individual bonds
• Private Placements including Hedge Funds
• Pure SMAs with a single sub-class
• Core funds (Dimension Core) with multiple classes
• Securities (funds / SMAs) with multiple SMA classes

Factors Considered in Rebalancing

• Class, subclass and fund targets and windows (Three levels)
• Trading costs
• Number of trades
• Redemption Costs and Intervals
• Long-term gains
• Short-term gains
• Carry forward losses
• Fund location (using “difference based location” proprietary module)
• Client specific constraints (e.g. do not sell this security)
• Tradeoffs between gains, costs, location, out of balance
• Sell preferences considered in a propietary rule based algorithm, to identify practical rebalancing trades. The algorithm allows us to automate the selling of legacy funds without having to manually rank order the sells.

Key Feature Differentiators

• Potentially Improve Client Returns
  1. Range rebalancing with tolerance bands based on iRebal research
  2. iRebal developed "opportunistic rebalancing" algorithm
  3. Location algorithm developed by iRebal, fund level control
• Automate Back Office Operations
  1. Automated data extractions from PC / Advent
  2. Electronic two-level ticket approvals paperless
  3. Trade history audit trail saved
  4. Trade reconciliations next day
• Extensive Cash Management
  1. Treat cash as an Asset Class, Pure Cash or as Bonds
  2. Dollar cost averaging; systematic withdrawals
• Rules based architecture allows
  1. Visibility through trading logic, customizing and editing of trades
  2. Three levels of targets at Class, Sub-Class and Security Levels
  3. Legacy fund treatment is automated
  4. Include 401(k) and Annuities in family of accounts
  5. Hybrid SMAs, UMAs and Core Funds
  6. Two adjustable dials for tax vs. rebalance tradeoffs