Pacer Advisors Automates ETF Rebalancing Workflow with Bloomberg RBLD Optimizer | LeapRate | Online Trading Industry News, Broker Intelligence & Fintech Analysis

Pacer Advisors has implemented Bloomberg’s order and execution management solutions to automate and streamline its investment workflow.

The move is expected to significantly reduce the manual effort involved in high-volume ETF rebalances and improve execution precision.

The implementation covers Bloomberg’s Asset and Investment Manager system for order and investment management, and EMSX, Bloomberg’s multi-asset execution management system. 

Central to the deployment is the Rule Builder Optimizer, which automates broker allocation across multiple constraints during an ETF rebalance. This is a process that previously required hours of manual work each time it was carried out.

The firm explained that, unlike the traditional broker wheel approach, which allocates one order at a time against a single constraint, the RBLD Optimizer evaluates the entire basket simultaneously, optimising across factors including share distribution, dollar imbalance, broker commissions, liquidity footprint, and order cost. 

Orders are then allocated and released to brokers in coordinated batches with a single click, creating dollar-neutral, proportionally balanced baskets that help minimise overnight risk and reduce cash drag.

Portfolio managers can use Bloomberg’s PM tool to compare portfolios against benchmarks and targets, with orders automatically generated and routed for execution via RBLD, reducing manual calculations and improving allocation accuracy at scale.

“Bloomberg’s RBLD Optimizer has transformed how we approach rebalance execution,” said Danke Wang, Head Portfolio Manager at Pacer Advisors. “By automating an extraordinarily complex allocation problem, we have significantly improved our precision with the optimizer.”

Ravi Sawhney, Head of Product for Buy-Side Execution at Bloomberg, said the RBLD Optimizer brings “advanced optimisation directly into the execution workflow,” enabling clients to solve complex, multi-constraint allocation challenges quickly and efficiently.