Commonwealth Rolls Out Portfolio Management Platform

Commonwealth Financial Network developed the Commonwealth Model Management platform to help advisers with systematic managing and rebalancing of client portfolios. 

The adviser-driven system is fully integrated into Client360°, Commonwealth’s client management platform, allowing advisers to rebalance hundreds of accounts simultaneously, the broker/dealer said.   

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

Commonwealth says that advisers can create models from scratch, using Commonwealth/Ibbotson templates, from other models, or from an account’s existing holdings. Models can be set up using just tickers or by using tickers and asset categories. Drift variance bands and minimum trade amounts can be set on a model level, and advisers can assign an unlimited number of accounts to a model.

“The system is integrated with our centralized alerting system, allowing advisers 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,” said Tedesco.   

Commonwealth Model Management creates product equivalences (e.g., Apple = Google) to help reduce unnecessary trades/ticket charges and to reduce the number of models that advisers need to create, according to Commonwealth. Drag-and-drop functionality allows advisers to order the asset categories within a model by dragging and dropping them into the appropriate space.

Advisers can produce several enhanced reports, including drift reports, model breakdown (along with target weightings), equivalency history, model audit history, and trade log history. The system accommodates all asset types, including bonds, UITs, and alternative investments. A cash generation feature allows advisers to tap into adviser-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.