Advisors who custody assets with Scottrade Advisor Services will be able to offer enhanced rebalancing and managed account services to clients.
Davis said the new services, from San Francisco-based MyVest, will be rolled out in stages, beginning later this year. They’ll be complimentary, so advisors now paying for such services may be able to eliminate that cost.
The new services are based on MyVest’s Strategic Portfolio System.
“Both of these solutions have a time management component,” Davis said, “allowing advisors to be more efficient. These services are extremely flexible, so advisors can choose how much of these processes they want to automate.” Increased automation, he added, may provide advisors with more time to spend on client relationships, planning, and prospecting.
According to Scottrade, SPS’ Unified Managed Household approach enables advisors to address the investment needs and objectives of multiple individuals within a household.
“This gives advisors an edge,” Chuck Lewis, co-founder and vice chairman of MyVest, said in a statement. “The Strategic Portfolio System makes it easy for advisors to manage a client’s total holdings in a personalized, yet scalable manner. This can help increase the household’s potential total after-tax return and reduce consolidated risk. It also helps advisors win more and larger households.”
SPS takes inputs from multiple sources and combines them to produce an optimal household portfolio. “This system can look at a client’s individual accounts, trust accounts, IRAs, custodial accounts for their kids, and so on,” Davis said, “and decide what should go where. A client won’t hold municipal bonds in an IRA, for instance.”
A client’s investment plan can be customized to recognize accounts not managed by the advisor. “If a client has a large amount of employer stock in his or her 401(k),” Davis said, “the system can be set up so stock in that company or in that industry won’t be purchased. That can be done even if the advisor isn’t managing the 401(k).”
Scottrade is working with MyVest to integrate these services into its platform. Each service will be announced as it is released for use by advisors using Scottrade’s custodian services.