Barrett Ayers, SVP of Product Management at Adhesion, commented on this latest development for WealthADV. "Finally there is a cost effective and powerful solution for investment advisors of even modest size to easily rebalance and trade their clients' accounts. Full workflow automation, from portfolio management to order generation to execution, accessible from one, seamlessly integrated platform will provide investment advisors significant operating efficiencies. On top of this advanced order management system we felt it was a natural extension to integrate an intelligent execution service, adding significant potential for price improvement and maximizing return opportunities for their clients."
Advisors who use the algorithmic trading services of the WealthADV Platform have access to a variety of execution strategies for their orders, including Volume and Time Weighted Average Price (VWAP and TWAP), designed to minimize market impact while providing anonymity and transparency. Added Ayers, "Until now many advisors have had no choice but to ignore the 'hidden' costs of trading. Most trading related erosion of alpha doesn't occur from the ticket charge; but instead from the market impact caused by introducing a sizable order on the market without researching prevailing conditions and anticipated impact. With WealthADV's new Order Management System, advisors can choose to employ sophisticated, managed execution services that make use of advanced algorithms to protect order details by using mean-reversion analysis and complex scheduling patterns -- a sophisticated approach designed to counteract the effect of other traders gaming time-oriented strategies. With the addition of algorithmic trading to WealthADV, advisors now have access to smart execution capabilities in a very cost-effective, integrated platform."
Michael Stier, President and CEO of Adhesion Technologies, added, "From the outset, one of our primary goals with the WealthADV Platform was to enable investment advisors, through sophisticated technology and operational services, to efficiently deliver to their clients highly personalized investment management services. With the help of our technology, services and library of leading investment strategy providers, advisors can now more widely offer customized portfolio overlay management services, bringing significant value to both their clients and practices."