MyVest’s latest release of its Strategic Portfolio System (SPS) expands its tax-aware rebalancing methods to deliver greater control for managing drift at the asset class level while supporting customization at scale. MyVest also made enhancements to its transition planning, What-If Analysis tool, and fractional shares capabilities.

New tax-aware drift management capabilities

A new asset class drift capability was added to SPS’s lineup of rebalancing modes, expanding the choices to manage risk. The existing choices include defining risk control approaches from strict target adherence to drift bands to tracking error tolerances, and from basic to advanced tax optimization.

It incorporates all of the key capabilities of MyVest’s other rebalancing modes, like tax management, targeted (sleeve-level) rebalancing, on-demand or overnight rebalances, and more.

Beyond those core capabilities, the new asset class drift mode delivers the following enhancements:

  • Granular asset class-level control: A high degree of configurability to control drift tolerance ranges at the level of each asset class, ensuring that no two asset classes need to be treated the same. 
  • Configurability for the firm: In addition to the standard capability for a firm to define their own asset classification schema, the new method provides flexibility for firms to assign different asset class rebalance settings at different levels of the organization, for example, by program, by model, or by strategy. 
  • High degree of transparency and explainability: Clear trade reason reporting allows advisors and portfolio managers to better understand why trade orders were generated. 

“Managing the tax sensitivities of our clients is critical in helping them achieve their financial goals. Using MyVest’s expanded rebalance function that recognizes those sensitivities while supporting client specific customizations, is helping our Portfolio Managers deliver more optimal outcomes at scale,” said Jeremy Mobley, Director, Product Strategy and Execution, TIAA.

Additional recent enhancements to SPS

Enhanced What-If Analysis Tool: Enhancements to SPS’s What-if Analysis Tool deliver new pre-trade analytics for rebalances driven by a proposed model change, enabling the user to see how a model change will impact all subscribing portfolios before sending the corresponding orders to SPS’s Order Management System. 

Expanded Transition Planning: Enhanced transition planning capabilities enable advisors to selectively delegate the creation of transition plans to a central team.

This enhancement builds on SPS’s existing transition planning capabilities that include household tax budgeting, automated keep/sell analysis of legacy securities, and security-level substitutions.

Improved Fractional Shares Support: Enhancements to custodial data integrations support the precision required for equity and mutual fund orders with fractional shares, which can be especially valuable for smaller accounts and direct indexing solutions.