Displaying items by tag: rebalancing

Advyzon Investment Management, a turnkey asset management program, announced at the recent T3 Advisor Conference, that the firm is launching its new model marketplace called Nucleus. Nucleus will be fully integrated into the comprehensive, award-winning Advyzon platform built on single source code. Lee Andreatta, CEO and co-founder of Advyzon Investment Management stated, "We're extremely excited to announce the launch of Nucleus, something that has been in the works since we launched AIM in Spring 2022. Adding a model marketplace enhances AIM's TAMP offering and moves Advyzon closer than ever to offering a fully comprehensive solution for financial advisors and investment managers to run their firms." Andreatta and his colleague John Mackowiak, Chief Revenue Officer for Advyzon, shared the news during their T3 main stage session, 'If You Think Your Tech Stack Is Optimized, Think Again: The Benefits of a Comprehensive Solution'. The Nucleus model marketplace is structured for unified managed accounts (UMAs) and will include sleeve-level reporting and trading. Financial advisors will have access to third-party strategists offered in two ways to help their businesses. The first is Advyzon traded, with advisor-built UMAs or pre-set UMA portfolios built by AIM incorporating strategist sleeves and the second is Advisor traded, with Nucleus access available in Advyzon's Quantum Rebalancer – a powerful, in-house trading and rebalancing tool seamlessly integrated into Advyzon's cloud-based platform.

Finsum:Advyzon Investment Management, a turnkey asset management program, recently announced that it is launching its new model marketplace called Nucleus, which is structured for UMAs and will include sleeve-level reporting and trading.

(New York)

The market is right around all time highs and economic and earnings figures are healthy, all signs that the market is headed higher. That said, prices could take a dip at any time and many are worried about a reversal. Some are particularly worried about funds having to sell stocks to rebalance their holdings of equities versus bonds (which have performed poorly of late). So how can one profit from a market fall? Here is a good options strategy for doing so: buy S&P 500 put options at $287 and simultaneously sell $285 put options, both of which expire May 3rd. The market volatility has been low, so the options are cheap, and the spread strategy limits losses.

FINSUM: If you are just playing for volatility based on a likely rough month-end rebalancing, then this could be a good strategy.

(New York)

It seems like every time there is a big plunge in the market over the last few years one can trace the root cause back to a few products traded by people, but more often, machines. Well, it is no different this time as Bloomberg says two tiny volatility products, which now only have $135m under management, were largely responsible for the selloff. One of the products is the VelocityShares Daily Inverse VIX Short-Term ETN, which will soon be delisted. Despite the small size of the products, traders closely monitor the products’ behavior, and that is said to have caused the panic, as traders predicted how the funds would rebalance and front ran that rebalancing.

FINSUM: Well, at least it was not an algorithmic disaster this time. This sounds a lot like good old fashion human gamesmanship.

(New York)

Speaking at a large ETF conference yesterday, the head of Vanguard has a big warning for all advisors. He said that the industry needs to change rapidly or face a huge loss of jobs. Citing evidence that almost 60% of advisor jobs may be lost to automation. He argues that portfolio construction and rebalancing are now super cheap commodities and that advisors should instead focus more on managing client behaviour, which will be a continued niche.

FINSUM: This was a pretty grave warning for advisors. We are not sure the outlook is so bleak.