Introduction to iRebal®

Overview

iRebal is Schwab’s premier rebalancing platform, designed to seamlessly integrate into your firm’s workflows, shortening manual rebalancing efforts from weeks down to hours. It is a customizable, rule-based program that offers you more effective portfolio management, including tools to handle tax-efficient rebalancing, dynamic cash management, tax-loss harvesting, and more—all through an intuitive interface.

  • Integrated experience with real-time positions, pricing, and trading
  • Robust dashboard for advisor reference and ease of use
  • Tax-considerate, household-level portfolio rebalancing
  • Dynamic tax-loss harvesting and wash sale avoidance
  • Extensive cash management functionality
  • Highly customizable settings to rebalance accounts according to specific needs
  • Streamlined order approval and execution workflow, including setting parameters for block trades and allocation of trades
  • Cash and Allocation Reports for quick review of accounts

Tax-considerate rebalancing

iRebal considers your predetermined tax implications in its algorithms. This capability provides trade creation based on potential tax consequences for your clients.

  • Program iRebal with a hard restriction against presenting any potential sell orders of any short-term lots with unrealized gains in taxable accounts, or specifically those that are close to transitioning to long-term lots.
  • Rank securities by tax impact and set iRebal to automate asset location across qualified and taxable accounts for a client or family.
  • Configure iRebal to help you guard against potential wash sales and redemption penalties.
  • Systematically substitute securities for one another in different account types depending on your preset tax strategy, such as tax-exempt bonds as a substitute for taxable bonds when purchasing in a taxable account.
  • View short- and long-term gain/loss implications of potential trades, to the lot level.


Cash management capabilities

  • Customize cash needs for individual clients and accounts, or support global cash rules for taxable or qualified accounts.
  • Use the set-aside cash feature to maintain the required cash in accounts and treat it as part of your asset allocation or as a separate cash reserve.
  • Manage margin strategies, including alerts, when margin exceeds your specified range.
  • Schedule scans of accounts and be alerted to incoming cash flows or shortfalls for upcoming outflows.
  • Dollar-cost average by scheduling the investment of cash into a portfolio.
  • Enter or import cash rules and requirements to streamline your workflow.

Directed trading actions

You can act on tactical opportunities with iRebal-directed trading functions.

  • Rebalance an individual position across one or more client portfolios quickly and easily.
  • Sell all or part of a security and replace it with one or more securities under your defined set of conditions.
  • Consider client liquidity needs and tax implications, such as restricting against short-term gains, while executing tactical trades.
  • Rebalance and trade within specific asset classes or sub-model sleeves.


Tax-loss harvesting

Set thresholds for each harvestable security, and iRebal will check for losses at your desired frequency. iRebal can harvest across portfolios and create an alert when potential opportunities develop throughout the year based on your predefined settings.

  • Use tax-loss harvesting at the lot level or at the position level, under your defined set of loss and dollar constraints to account for market volatility.
  • Set client-level loss targets to offset specific gains, or proactively harvest all qualifying losses.
  • Specify the type of losses (short- or long-term) to identify or harvest all qualifying losses.
  • In one action, invest the proceeds from sales into your selected replacement securities.
  • iRebal can alert you after the wash sale period has passed, based on your settings.

What is an iRebal environment?
An iRebal environment is an iRebal instance created for a specific firm. Users within the same firm typically share an environment. Items that are shared between users in the same iRebal environments are Models, Global Security Settings, and Rebalancing rules.

Is there a fee for using iRebal?
No. iRebal is available free for use on all accounts managed through Schwab Advisor Center.

Is there any help on getting started once I get access to iRebal?
Yes. The Help menu includes an “Onboarding Checklist” to help you set up models, organize client portfolios, and complete key workflows for the first time.

Do iRebal settings and models created by one specific user carry over to others within the firm?
Yes. Users who share an environment will also share access to models and have the same settings, but each user will only have access to the accounts authorized for their specific Schwab Advisor Center user ID, giving each user a single environment for their firm while still having the option to segregate sets of clients at the user level.


What is the Model Market Center?
Model Market Center is a technology platform within iRebal that offers access to hundreds of affiliated and unaffiliated models. 

You can pick a model, and even create a blended model by combining it with your own strategies, to build your clients’ portfolios based on their unique needs. This can help you save time and gain efficiency with your portfolio construction processes, while still retaining control of rebalancing and trading through iRebal.

For questions about using iRebal, review the resources below:

iRebal Support team

Hours: Monday through Friday from 9 a.m. to 5:30 p.m. ET

Phone: 855-640-2472

Resources iRebal fact sheet

 

How to get started in iRebal®
How to rebalance in iRebal®
How to work with Model Market Center™
Introduction to Model Market Center™
 

iRebal offers a flexible tax harvesting feature for taxable accounts that allows you to set various loss thresholds, total loss targets for portfolios, and choose a replacement security for each harvested security. Once the thresholds have been set, iRebal identifies eligible losses in selected accounts, and shows you the securities that fit the criteria that you have defined. Schwab does not represent that any particular tax consequences will be obtained. Tax-loss harvesting involves certain risks including unintended tax implications.

Material made available through the Model Market Center is provided by affiliated and unaffiliated Model Managers and information providers. Schwab has not paid for or been involved in the preparation of the content, and has not verified, endorsed or approved the content. Schwab assumes no responsibility for any fact, recommendation, opinion, or advice contained in any such model portfolio or materials and expressly disclaims any responsibility for any investment decisions or for the suitability of any security or transaction based on it. Any mention of specific managers and/or models should not be considered an endorsement or recommendation by Schwab. Users of Model Market Center are responsible for all upfront and ongoing manager and model due diligence.

Certain model attributes are sourced from Informa PSN. The PSN Data Set and any other Informa content is supplied by Zephyr, A Division of Informa Business Intelligence, Inc. The PSN Data Set may not be copied or distributed and is not warranted to be accurate, complete or timely. Schwab and Informa Business Intelligence, Inc. are separate unaffiliated companies and are not responsible for each other’s services.

Schwab typically receives remuneration from ETFs and mutual funds and/or their managers that participate in the MMC for administrative and/or other services.

Model Market Center leverages iRebal® to provide independent RIAs access to model portfolios provided by affiliated and unaffiliated Model Managers.

iRebal® is a technology offering of Schwab. Rebalancing does not protect against losses or guarantee that an investor's goals will be met. Market volatility, volume, and system availability may delay account access and trade executions.

Schwab does not provide investment planning, legal, regulatory, tax or compliance advice. Consult professionals in these fields to address your specific circumstances.
 

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