TD Ameritrade announced Jan. 12 that its ThinkTech Inc. subsidiary has acquired iRebal, a company founded by Gobind Daryanani in association with three leading planning firms whose portfolio rebalancing program is used by wealth managers. Terms of the acquisition were not announced, but Daryanani will continue to oversee the development of iRebal and manage its sales and marketing and efforts.
The deal, which closed Dec. 27, 2006, is part of TD Ameritrade’s strategy, said its president, Tom Bradley, in announcing the acquisition, “to acquire leading products and services that enhance our platform and benefit independent advisors.” The deal does not make the rebalancing tool proprietary, however–iRebal will be available still, according to the announcement, “to all advisors regardless of where they custody their assets.”
iRebal is a rule-based application that automatically generates trade recommendations for multiple-account level rebalancing and cash management. It was developed through the joint efforts of three major advisory firms–Regent Atlantic Capital in Chatham, New Jersey; Balasa Dinverno & Foltz, in Itasca, Illinois; and Kochis Fitz in San Francisco, in an effort to improve the efficiency of their rebalancing efforts for all their clients’ portfolios.