Hub24 releases portfolio management tool

Robo-advice is coming

Platform provider Hub24 has launched a new tool to assist portfolio managers adjust their managed portfolios and respond to changes in market conditions.

The company’s Progressive Portfolio Implementation tool enables portfolio managers to set different target weightings for new inflows and allocate new client money differently, Hub24 said in a statement.

“Managers receiving new inflows from investors normally have to buy all the holdings to match the existing weightings of their portfolios and are then forced to sell some of those recently-purchased assets shortly after to adjust to the new weightings, said Hub24 director of strategic development Jason Entwistle.

“With Progressive Portfolio Implementation, however, managers can manage those inflows more efficiently in anticipation of highly probable changes.”

Mr Entwistle said the function will provide a number of benefits for portfolio managers.

“Progressive Portfolio Implementation may help enhance performance as portfolio managers don’t have to purchase securities at peak valuation for new funds and can also deliver tax efficiencies for investors by not having to sell securities before their time,” he said.

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