Advanced rebalancing and real-time data keep client fully-invested and limit overdrafts.
DENVER (February 17, 2010) – Trust Company of America, a specialized custodian and technology provider to fee-based Registered Investment Advisors, today unveiled Multi-Settlement Date Rebalancing. When securities with both T+1 and T+3 settlement dates are combined in a single investment model, Multi-Settlement Date Rebalancing will calculate recommended trades over time while considering the account’s pending distributions and upcoming contributions – helping advisors keep clients fully-invested and limiting the risks of overdrafts.
For models that include securities with both T+1 and T+3 settlement dates, the Trust trading system automatically creates all required trades in one action by calculating the appropriate trade date for each trade based on the availability of cash on each day up to T+3. Essentially, it determines the available cash on the current date T, T+1, T+2, and T+3 and splits up required actions into multiple trades so that at the end of each trade date, the account will not be overdrawn.
Rebalancing on the Trust platform has always used real-time information to automatically free up cash to cover any pending distributions regardless of the effective date. With Multi-Settlement Date rebalancing, it also takes pending contributions up to T+3 into consideration. In other words, if the account has a pending contribution at T+2, rebalancing will use that cash to create buys on T+2 or T+3 as needed.
When future-dated trades are created, they remain in the trade blotter until their trade date. Automatic bulletins remind the advisor to approve them as the cash is available.
When rebalancing an entire account containing multiple investment models, rebalancing is now aware of T+1 and T+3 settlement date securities and will create future-dated asset transfers between models and trades as needed when they do. Even if only one model in an account contains a security with a T+3 settlement date, asset transfers and all models will be processed looking out to T+3 – allowing pending contributions up to T+3 to be considered.
By providing advisors with sophisticated, reliable and easy-to-use trading tools, Trust makes firms more successful and makes advisors’ lives easier.
