How does Smartleaf work?
Smartleaf provides financial institutions with a comprehensive decision-making solution, including advanced work process tools that empower overlay managers to effectively and efficiently oversee hundreds, or thousands, of investment portfolios.
Smartleaf analyzes every client investment portfolio—every day—to identify trade recommendations that would improve the portfolio from a risk, tax, and constraint perspective. A trade is only recommended when the benefit, from a risk and return perspective, is greater than the associated cost of implementing the trade (trading costs plus tax expense).
The Smartleaf system generates trade recommendations for each portfolio, down to the tax-lot level. These recommendations can be efficiently reviewed via a series of workflow tools, and either accepted “as is” or modified by the overlay manager. All trade recommendations are automatically pre-trade compliant, in accordance with the specific constraints delineated in the client’s Investment Policy Statement.