Overview
Our platform is designed to help advisors manage portfolios with precision, scale, and confidence. Rebalancing and trading are central to that mission.
This article walks through how our daily rebalancing and trading process works, including how portfolios are monitored, how trades are generated and reviewed, and what you can expect as an advisor using the Zoe platform.
What Is Rebalancing?
Rebalancing is the systematic process of realigning a portfolio back to its target asset allocation. This can be triggered by:
- Market movements causing drift beyond allowed thresholds
- Portfolio updates or model changes by your team or Zoe
- Cash inflows/outflows (deposits, withdrawals, dividends, etc.)
- Tax-loss harvesting opportunities (for taxable accounts)
Zoe’s rebalancer supports both automated ("auto-rebalancing") and advisor-review ("manual") workflows depending on how you’ve configured your client accounts.
Daily Rebalancing & Trading Workflow
Every business day, the Zoe platform follows a standardized workflow:
1. Account & Data Reconciliation (Morning)
- Custodian files (Apex) are reconciled daily before trading begins.
- Positions, cash balances, and cost basis are synced.
- Errors or discrepancies are flagged and handled by the Zoe team before proceeding.
2. Account Health Monitoring
- Every eligible account is scanned for:
- Drift thresholds (customizable per model/account)
- Cash inflows/outflows
- Tax-loss harvesting triggers (for taxable accounts)
- Among others
- Rebalancer determines if action is needed based on your portfolio logic and thresholds.
3. Trade Proposal Generation
- For accounts determined to need rebalancing, proposed trades are generated.
- If the account is in "auto-rebalancing" mode:
- Trades are automatically approved and queued for Zoe’s internal review.
- If the account is in not enabled for “auto-rebalancing” mode:
- Trades are held in queue for your review and approval before execution.
Trade Review Process
For Auto Accounts:
- Zoe’s Trading team performs a multi-step review to ensure:
- Trades align with portfolio targets
- Tax lots are appropriately selected
- Security-specific rules (e.g., ESG filters, restricted securities) are followed
- Compliance checks and trade validations are run automatically before execution.
For Manual Accounts:
- Advisors receive a notification with the proposed trades.
- You can:
- Approve all
- Or Reject proposed trades
Trading Execution (12 PM to 2 PM EST)
Once trades pass review:
- Orders are batched and executed via our custodial partners (e.g., Apex).
- Zoe monitors for trade confirms, partial fills, and settlement errors.
Execution timing:
- Most trades are sent to the market between 12 PM to 2 PM ET.
- Same-day execution is typically completed unless markets are closed or halted.
Post-Trade Activities
Once trades are executed:
- Trade confirmations are matched against expected fills.
- Zoe coordinates with the custodial partner and advisor for any issues with trade issues.
- The following day, all accounts are reconciled with custodial trade confirmations.
Please reach out to trading@zoefin.com with any questions.