InvestmentNews takes advisers through the developments and innovations in technology that’ll change the way you do business today—and tomorrow.

Rebalancing application provider TRX awarded patent

process for identifying rebalancing opportunities and listing them on a single screen recognized

Jan 9, 2013 @ 11:22 am

By Davis Janowski

+ Zoom
(Total Rebalance Expert)

The folks behind Total Rebalance Expert announced Tuesday evening that they have been awarded a patent!

I love seeing startups making good and protecting their intellectual property. It does my heart good.

Co-founders Cheryll and Sheryl, aka Cheryll Lurtz and chief executive Sheryl Rowling applied for their patent, “Portfolio Management Analysis System and Method” in 2010 and were granteded US Patent 8,321,320, on November 27, 2012.


Specifically this patent is for the “Analysis Expert” function currently found in TRX; it outlines the methodology the software utilizes for identifying rebalancing opportunities and listing them on a single screen across an entire client base at the account, household and asset class levels.

Here's more of the prepared statement in their own words:

    “Advisers have been telling us all along that our approach to providing the needed technology to automate the portfolio rebalancing process was unique and innovative,” said Cheryll Lurtz, TRX co-founder and CIO. “Now with this patent, advisers using TRX can uniquely benefit from that intellectual capital that was generated from the experiences in tax-efficient rebalancing developed in advisory practices.”

    The Analysis Expert feature in TRX enables advisers to view their entire client base on one screen and then sort for which accounts or households are out of guidelines and need rebalancing. The sorting capability can be used to identify “transaction triggers” for client needs and opportunities, such as:

    • Excess cash that needs to be invested

    • Cash that needs to be generated for distribution reasons

    • Tax loss harvesting opportunities

    • Asset class rebalancing needs

    • Asset subclass rebalancing needs

    From this screen, advisors can then simply click on a particular client or group of clients to produce the needed trades. The Analysis Expert capability enables advisors to rebalance much more frequently, even on a daily basis, to take advantage of market moves, tax law changes or other client needs.

    Without this advanced level of functionality, advisors are forced to manually drill down on each account or household periodically to see if there is a need to rebalance. For firms with hundreds of accounts or households, this process, even with other rebalancing systems that just calculate rebalancing amounts, often limits them to rebalancing on a quarterly or even annual basis.

    “As a practicing financial adviser, I was frustrated with the current offerings on the marketplace that did not have the features needed to really take advantage of technology to automate the rebalancing process,” noted TRX CEO Sheryl Rowling.

    “Accordingly, we set out to build a portfolio rebalancing system that had the necessary flexibility and sorting capabilities to simplify the identification of rebalancing opportunities and this patent is a tremendous validation of the innovation inherent in TRX,” concluded Rowling.

I have to add that I'm now curious what patents already exist from other rebalancing vendors, namely the creators of iRebal, Tamarac, ASI technology, RedBlack, RebalanceMax et al.

I'm sure I'll be hearing from them.


What do you think?

View comments

Recommended for you

Featured Research

The 2015 InvestmentNews Adviser Technology Study

This in-depth study provides a blueprint for the industry, providing actionable information to advisers, along with the latest solutions to help them drive profitability, efficiency and growth for their firm.

Featured video


Ed Slott: Many investors are still not using this IRA strategy to save on taxes

If you have a client who has an IRA that is subject to required minimum distributions and they're donating to charity, they should be using qualified charitable distributions, according to Ed Slott, founder of Ed Slott's Elite IRA Advisor Group.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Brian Block's $4 million bonus was tied to a key metric at ARCP

Prosecution rests case in fraud trial against CFO of American Realty Capital Properties.

Edward Jones is winning the Google search war

Brokerage firm's digital marketing investment helps land it at the top of local and overall search engine results, report finds.

Voya's win in 401(k) fee suit involving Financial Engines bodes well for other record keepers

Fidelity, Aon Hewitt and Xerox HR Solutions are currently defending against similar fiduciary-breach claims.

Collective investment trusts getting more attention from 401(k) advisers

The funds are catching on due largely to lower costs and more product availability, but come with some inherent drawbacks.

Vanguard rides robo-advice wave to $65B in assets

Personal Advisor Services, four times the size of its closest competitor, combines digital and human touch.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print