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Commonwealth Launches Model Management System

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Commonwealth Financial Network announced the launch of Commonwealth Model Management Tuesday, a trading platform for “systematic managing and rebalancing of client portfolios.” The firm says the system is fully integrated into Client360°, Commonwealth’s client management platform, allowing advisors to rebalance hundreds of accounts with a few clicks of a mouse.

“This new system gives our financial advisors the ability to scale their investment management function in a more streamlined fashion, providing them even more time to spend with clients,” Darren Tedesco, Commonwealth’s managing principal of innovation and strategy, said in a statement.

According to the firm, Commonwealth Model Management allows advisors to create models from scratch, from Commonwealth/Ibbotson templates, from other models or from an account’s existing holdings. Models can be set up using tickers only or by using tickers and asset categories. Drift variance bands and minimum trade amounts can be set on a model level, and advisors can assign an unlimited number of accounts to a model.

“The system is integrated with our centralized alerting system, allowing advisors to proactively monitor model portfolios so that they can react to drift movement quickly, potentially reducing risk for their clients and systematically approaching a buy low, sell high methodology,” Tedesco added. 

Drag-and-drop functionality allows advisors to order the asset categories within a model.

Advisors can produce several new and enhanced reports, including drift reports, model breakdown (along with target weightings), equivalency history, model audit history and trade log history.

The firm said the system accommodates all asset types, including bonds, UITs and alternative investments. A cash generation feature allows advisors to tap into advisor-set cash buffers and/or create trades to meet the client’s cash needs. Positions in accounts can be locked for any reason in the system, allowing rebalances to occur around the locked position.