Advanced Mode Overview

The following will demonstrate how to recommend the transfer holdings in a Portfolio Account to a Model Portfolio using Advanced Mode.

To apply a model portfolio using Target Sets or Model Trees access the Model screen:

While accessing a client: 

• In the left hand Navigation Menu, click Portfolios > Model > Model
  
• The Model screen will display.
  
  The Model screen is broken up into three panels:
  • The Model panel - Where model portfolios are applied to the accounts within the clients portfolio.
  • The Target Effects panel - Displays the effects (adjustments) that applying the model portfolio will have on the clients portfolio.
  • The Analysis panel - Provides a breakdown of the client current and proposed asset allocation.
    
    
• The Advanced Mode also introduces a Reserve % field - This field sets the portion of the total portfolio funds that will not be allocated to a target set.
  
  

• Click on the Edit button beside the account you wish to apply the model portfolio.
  
  
  
  
• The Target Set window will open:

  This screen is broken up into four sections:

  1. Target Set Products - Select the model portfolio or model tree you wish to apply
  2. Security Adjustments - Override the weighting allocated to the investments in the model portfolio selected
  3. Exclude Security Filters - Exclude existing investments from the model portfolio
  4. Security Substitution - Substitute investments in the model portfolio for other investments
     
     
     
     

     Tip: Click on the Question Mark icon and a pop up will appear providing a description and an example of these areas.

• Click on the Add icon in the Target Set Products section
• Select if you wish to add a Target Set or Model Tree
  
  Instructions of each method will follow.
  
  
  
  

The Model Types that can be selected are: 

• None:  Using this option will have no target set applied to the account and the assets are not weighed against other accounts for the selected portfolio. This option clears the portfolio model and all existing target sets.
• Portfolio Weight allows you to manually set the weight of one account compared with other accounts in a multi-account portfolio. The weight of the account is set in the Model Weight (%) field.
• Current only applies the target model set to that individual Portfolio Account's holdings and cash, regardless of how this amount compares to the rest of the portfolio. For e.g. if you select ‘Current’ the target weight for the proposed portfolio will be unchanged. 
• Floating:  Select this option to manually set the weight of one account compared with other account in a multi-account portfolio. The weight of the account is set in the Model Weight (%) field. Once set, a floating account will not be re-weighted if a component has outperformed other components.
• Fixed will allow you to set the weighting of each security in a target assigned to an account to be relative to the overall portfolio.  Each target set is "Fixed" so the security weights represent the actual weight of the security in an overall portfolio which has more than one account.
• Transfer will allow you to move non-cash holdings from this account to another account within a model.
  
  

Account Model Settings include:

• Model Weight:  this is the percentage of the total portfolio value to be allocated to this portfolio account. To source funds from a portfolio account, but not allocate anything to this portfolio account, set this value to 0%.
• Transfer to Account:  select the portfolio account to transfer the holdings to.
• Model Preset:  select a pre-defined account model to apply to the portfolio account
• Gross Up:  Select the Gross Up method to apply.  If ‘Absolute’ is chosen, the Portfolio Accounts will all be proportionally adjusted to make them all total 100% if the percentage totals of the portfolio are less or greater than 100%.
• Benchmark allows you to a benchmark for comparison purposes. 
• Minimum Order (% or value) type the minimum order value as a percentage of total portfolio account value. If Minimum Order (Value) is entered, this field can be left blank. 
• Cash Reserve (% or Value) allows the elected portfolio reserve value to be excluded from the target set distribution.  Either a percentage or value can be chosen.

Target Set

After selecting Target Set from the aforementioned instructions:

• Click on the drop down arrow and a list of Target Sets available will appear.
• Select the Target Set you wish to apply. The benchmarks, investments and weightings will appear to the right.
  
  
  
  
• Enter the weighting in the Set Weight
• This will be 100% if you are only recommending one Target Set.
• If relevant, apply any Adjustments, Exclusions or Substitutions at this stage.
• If there are no adjustments to be made to the model portfolio click Save.

Model Tree

After selecting Model Tree from the aforementioned instructions:

• Click on the drop down arrow and a list of Model Trees available will appear.
• Select the Model Tree you wish to apply.
  
  
  
  
• If relevant, apply any Adjustments, Exclusions or Substitutions at this stage
• If there are no adjustments to be made to the model tree click Save.
• Enter the weighting in the Set Weight field.
• This will be 100% if you are only recommending one Model Tree.
  
  
  
  
• Click Save. This will take you back to the Model screen where you can view your changes:
  
  
  
  
• To accept the model portfolio as per the Target Effects panel click on Accept as Recommendations.
  
  
  
  

• The model portfolio will now be applied to the Recommend screen. 

Recommend

In the Recommend screen you can view the Target Set or Model Tree you have selected. 

• Select View All in the Account field or select only the account you wish to view.
• Confirm the modelling is correct and make any changes if required.