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Report finds focusing on functionality yields highest satisfaction when selecting rebalancing software

DENVER – The Financial Planning Association® (FPA®) today released the “FPA-ActiFi Adviser Technology Report: Rebalancing Software Edition,” which helps advisers better understand the available rebalancing software solutions in the marketplace. The report also includes information which can help advisers identify solutions that are a good fit for their companies. The research was conducted by FPA and ActiFi, Inc. and sponsored by TD Ameritrade Institutional.

The FPA-ActiFi series of reports analyze different products, provide expert analysis and help take the guesswork out of technology purchases for financial professionals. The Rebalancing Software edition is the final release in a series of seven published reports.

This latest release found that 53 percent of respondents currently use rebalancing software to assist with what often can be one of the most time-consuming tasks performed by advisory firms. Of those not using a rebalancing software solution, nearly 30 percent are very or somewhat likely to purchase one in the next 12 months. 

The report also found that advisers who select their rebalancing software solution based on the functionality over price or other factors are more than twice as likely to report increased productivity, nearly three times as likely to report having less worry about things falling through the cracks and almost twice as likely to say rebalancing software has increased their practice’s revenues.

Additionally, 49 percent of current rebalancing software users say they are very satisfied with their current rebalancing software solution and another 34 percent are somewhat satisfied. Advisers who are dissatisfied should take the opportunity to evaluate and research alternative or new solutions as many custodians, broker-dealers and portfolio management vendors have improved the solutions they offer. 

“It’s FPA’s mandate to help members build great businesses for the professional practice of financial planning. We realize it’s a continual challenge for practitioners to maintain efficiency and provide client service at a high level. The latest FPA-ActiFi Adviser report offers great insight on alternatives regarding portfolio balancing software that will bring the greatest benefit to their practice and clients,” said FPA Executive Director and CEO Marvin W. Tuttle, Jr., CAE.

“This study again shows the importance of technology in practice management, and the role it can play in creating efficiencies and improving client service and thus profits,” said Spenser Segal, CEO of ActiFi. “With that, we also know, and the study supports, that technology investments are only maximized when there is a process for aligning a firm's objectives with the software's features and how the people within a firm will actually use the new technology.”

“As advisers look to drive efficiencies within their businesses, they now have access to a comprehensive view of today’s leading portfolio rebalancing software to help them make more informed technology decisions,” said Richard Whitworth, senior manager, practice management solutions, TD Ameritrade Institutional. “Through our sponsorship and collaboration with FPA, we solidify our commitment to arm advisers with critical information and practice management tools to help them identify the best solutions for their businesses.”

FPA members can access the report at no cost; non-members can purchase it for $295 via FPA’s Online Store.