At SmartX, our rebalancer is designed to optimize portfolio management by ensuring that each position within a portfolio aligns with its target weights while minimizing unnecessary trading.

The latest iteration of the SMArtX Rebalancer boosts operational scalability by decreasing repetitive tasks and freeing users to perform value-added analysis for their customers. The Rebalancer will now automatically analyze advisors’ accounts on a daily basis for common scenarios that may require trading, such as First Rebalance, High Cash, Low Cash, and Position Drift, and present these to the user to propose trades.

Additionally, on the Pending Approval tab , the user will now be presented with summary level account data, including three opportunities to access the potential tax impact of performing trades on accounts:

Results on the Accounts to Rebalance page can be narrowed down in two primary ways: clicking on a Rebalancer Tile and/or Adding a Filter.

To filter the account list, click on the Add Filter chip and make the appropriate selection:

Filters and Rebalancer Tiles can be used at the same time:

The Accounts to Rebalance, Pending Approval, and History sections of the Rebalancer are now listed sequentially at the top of the page. Below, users’ accounts will automatically be filtered when clicking on one of the four Rebalancer ‘tiles:” First Rebalance, High Cash, Low Cash, and Outside Tolerance.

Accounts within one or more of the rebalancer queues, are based on each account’s cash and position thresholds previously established, the portfolio assignment, and individual positions.

Accounts will appear in the First Rebalance queue when the following conditions are met:

Accounts will appear in the High Cash queue when the following conditions are met:

AND

Accounts will appear in the Low Cash queue when the following conditions are met:

AND

Accounts will appear in the Position Drift queue when the following conditions are met:

AND

AND

Source - The Source of an account indicates how the account came to appear in the Rebalancer queue.

Rebalancer On - The Rebalancing was enabled by the user at the account level

Target Update - One or more Targets within the account’s Portfolio were updated

Drift Analysis - During the platform’s periodic review, the account was automatically flagged with one or more conditions.

Needed Since - The date when the account was first flagged with one or more rebalancing conditions

Last Rebalanced - The last date an account was rebalanced and the batch approved.

As users move through the Rebalancer workflow, accounts that have been selected for rebalancing appear for review on the Pending Approval tab. A user can choose to View Details of a Pending Request, Approve or Cancel.

The values in the status column will have a spinner until they are in ‘Pending Approval’ status.

When the user chooses View Details, he or she is shown the list of accounts that participated in the Rebalance Request, as well as numerous columns of data pertinent to making a decision as to whether the request should be Approved or Canceled (for one or more accounts).

This step in the rebalancing workflow is commonly referred to as pre-trade review and is critical to both small and large operations, as it provides a centralized process for one or more users to see the results of rebalancing and decide whether to proceed based on their specific use case and/or business logic.

As SMX’s target customer base commonly reviews rebalance batches with many accounts, often x00s or x000s, the ability to add more intuitive filters and allow saving commonly used layouts becomes valuable.

When users navigate to a Pending Rebalance Request, he or she now have the ability to filter on one or all of the following columns in the UI:

Additionally, when a filter selection has been made, the Condition and Value boxes will appear, such that the user can narrow the result set

Condition

Enter Value

Filters are combined in an AND format

Multiple filters from the same category are allowed

Example: User searching for an account value range:

When one or more filters are applied, the filters are retained on the current tab until the user changes them. This includes when the user:

Several screens in the rebalancer, including the Accounts to Rebalance tab, now offer more a direct way to specify all accounts on the current page versus all filtered accounts.

When marking the top level checkbox, the ‘Selected’ filter will denote the number of accounts from the current page; additionally, a global select all option will appear to the right. Use of the global select all leverages filtered parameters and does not add every accountID to the call, meaning processing time for one page or all pages is similar.

Pending Rebalance Requests will now provide summary level data at the account, allowing the user to determine if the outcome of a rebalance operation was achieved.

Pending Request Summary data includes: Beginning Available Cash, Ending Available Cash, Number of Buys, Market Value of Buys, Number of Sells, Market Values of Sells, Number of Flat Trades, and Market Value of Flat Trades.

When necessary, the user can click on an individual account to see the transactions that are a part of the rebalance, as well as the tax impact of approving trades.

🌠Flat Trades - each flat trade represents a set of sleeve level trade transactions that add up to a quantity of 0 at the account level. For example, buying 100 shares of XYZ in the APM Sleeve and selling 100 shares of XYZ in a model traded sleeve. Flat trades are netted internally, with any remainder sent to market for execution.

The Pending Request Summary, as well Completed Rebalance Request, have been updated to reflect Gain/Loss calculations assist users with their pre-trade account review workflow. Lot level data is processed daily from our custodial files and does not require any configuration at the user, advisor, or enterprise level for calculated values to appear.

Tax Impact information is available in four areas: Rebalance Batch - Multiple Accounts, Single Account - Position Level, Single Account - Compare Tax Impact Estimates, and Historical Rebalance - Tax Impact.

When reviewing Pending Rebalance Requests, the user will now see three additional columns at the the batch level: Realized Short Term G&L, Realized Long Term G&L, and Estimated Realized G&L.

Each value represents the sum of all Short Term, Long Term, or Total G&L at the lot level, per account.

When reviewing a single account in a Pending Rebalance Request, the user will now see one additional column: Estimated Realized G&L.

The value represents the sum of all Short and Long Term G&L at the lot level, per position.

When reviewing a single account in a Pending Rebalance Request, the user will also have the ability to compare Short Term and Long Term G&L estimates between our two default trade logic: Best Fit and Min Transaction.

The values in this table represents the sum of all Short or Long Term G&L at the lot level, per position.

When viewing a Completed Rebalance Request, the user will also be able to see the tax impact values that were displayed at the time of accepting or canceling trades: Realized Short Term G&L, Realized Long Term G&L, and Estimated Realized G&L.

Each value represents the sum of all Short Term, Long Term, or Total G&L at the lot level, per account.

The overall experience of the of the Pending Rebalance Batch has been updated to allow users to search for and remove accounts that do not meet their criteria for rebalancing. Once these accounts have been removed, the user can Approve all remaining accounts.

Without selecting accounts, the Pending Rebalance Batch can be canceled or approved as a batch using one of the buttons on the top right. This will act on all account on all pages.

Additionally, if the user were to select all accounts in the Pending Rebalance Batch manually, or via the global select all feature, the same cancel or approve behavior will be experienced.

When the user wishes to remove one or more accounts from a Pending Rebalance Batch, he or she checkmarks the box for the account. This will enable a Remove Selected feature on the top right. The user can select any number of accounts to remove from the same or different page within the Pending Rebalance Batch.

When viewing an account’s recommended orders, the user has the option to remove the account from the Pending Rebalance Batch as well.

In either workflow, when the user clicks Remove Selected, he or she will be presented with a confirmation box to ensure they understand the account will not be rebalanced and that it will be sent back to the Rebalancer queue.

Success Notification

As accounts are removed, or if failed accounts are present, the pending approval status will be updated and users will be prevented from selecting the accounts again:

If the user fails to remove or cancel all accounts from a Pending Rebalance Batch by the end of the day, an automated process will run to cancel the remaining accounts in the batch, ensuring these accounts are reevaluated in the next account analysis run

The Result of a rebalance batch has been updated to reflect a more accurate high level status, with the number of accounts that fall into one or more sub-statues added up in the Failed, Complete, and Removed buckets.

Columns on the Accounts to Rebalance, Pending Rebalance Request, and Completed Rebalance Request tabs can now be customized to add, remove, and/or reorder columns. The account # and account name columns are fixed with all remaining columns optional.

Users access the column layout via the gear icon on the upper righthand corner of each table:

The selected layout will remain in place if the user:

📒Note: The selected layout is automated removed after the user closes the Rebalancer and/or logs out of SMArtX.

The selected layout will remain in place if the user:

📒Note: The selected layout is automated removed after the user closes the Rebalancer and/or logs out of SMArtX.

The selected layout will remain in place if the user:

📒Note: The selected layout is automated removed after the user closes the Rebalancer and/or logs out of SMArtX.