Rebalancing application meets economic analytics program

JUL 23, 2013
This is the sort of integration that gets me excited. Two scrappy, small providers of technology for advisers that I have written about in the past see the potential for synergy and make things happen. Total Rebalance Expert and MacroRisk Analytics announced Thursday the availability of a new data integration between the two. The move is meant to assist advisers in assessing risk and how a given portfolio-rebalancing might be affected by macroeconomic forces. “For the first time, advisers will be able to combine high-level tax efficient rebalancing with ‘before and after' risk analysis,” said Sheryl Rowling, founder of TRX in a prepared statement. “Advisors will also have a multi-level risk evaluation of their specific model strategies, providing them with a holistic, macro view for making decisions on specific adjustments to client portfolios,” she added. MacroRisk Analytics uses a scientifically tested methodology for measuring the economy's influence on investment prices. Its toolsets have been built expressly for financial professionals and came out of the Center for Computationally Advanced Statistical Techniques and is owned by c4cast.com Inc. MacroRisk's creators have been perfecting its system and underlying methodology over much of the past decade through the use of a more complex and expensive version of its product in consulting engagements with big Wall Street firms. I have interviewed Michael Phillips, the company's chief executive and chief scientist on several occasions over the last two years and he has attempted to make me understand how the system works in several demonstrations (through no fault of his own Prof. Phillips has frequently overwhelmed my simple mind with the mathematics involved). With the new integration each portfolio to be rebalanced in TRX will be able to generate a Composite MacroRisk Index which measures the overall economic risk of a portfolio on a “before and after” basis as compared to a model portfolio. The CMRI is a patented measure of a portfolio's sensitivity to the economy and the higher a portfolio's CMRI, the more volatile it is likely to be. In contrast, portfolios with a low CMRI have less economic risk, are less likely to react to macroeconomic change and are more stable. Both firms have built integrations and established partnerships with multiple other third-party providers. Visit their respective sites (below) for more information and see our past coverage for additional detail on how they work. TRX MacroRisk Analytics __________________________________________________________ [email protected] or on Twitter @ddjanowski

Related stories and analytics applications for advisers:

Shareholders Service adds RedBlack and TRX to the mix Finding errors in PortfolioCenter [see second half on integration between Cornerstone & MacroRisk] Welcoming the latest version of Junxure and a new data tool [see second half on Elmwood Data] Datastream Professional launched by Thomson Reuters Technology helps advisers tap insight on global scale (HiddenLevers Part 1) A bit more on how the HiddenLevers core model works (HiddenLevers Part 2) MacroRisk Analytics, a Slideshow MacroRisk Analytics online app lets you screen stocks for reaction to economic factors A simple SMA analytics tool for financial advisers (Zephyr) StatPro rolls out public beta of Revolution portfolio analytics software Markov Processes Stylus Web, plan-level reporting tool Zephyr Associates rolls out new product

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