Scalability is an evaluation by Russell of how well the activity can be leveraged for use with multiple or all investor clients. The rating is the equal-weighted-average of subjective ratings of three sub-variables that contribute to scalability. These include "automation potential", "customization requirement," & "cost effectiveness".
|Automation potential||Customization requirement||Cost effectiveness||Relative Scalability (average of sub-metrics)|
|Pay attention to holding period||3||3||2||2.7|
|Manage portfolio yield||3||4||5||4.0|
|Select tax lots||1||1||1||1.0|
|Defer realized gains||2||1||2||1.7|
|Eliminate wash sales||4||1||1||2.0|
How much potential is there to automate this activity?
5 = a lot | 3 = some | 1 = very little
Degree of customization
How much customization does this activity require for each individual client? (Note: individual suitability considerations may affect the activity)
5 = low | 3 = medium | 1 = high
Could this activity be scaled in a low-cost manner?
5 = yes | 3 = maybe | 1 = no