Portfolio Accounts Overview

The purpose of this guide is to provide an overview Portfolio Accounts. Portfolio's is used to manage client investments, providing an audit trail for investment transactions. 

Within Portfolio, Accounts can be created which allow for investment holdings to be separated and categorised. Reporting and portfolio modelling can be  applied  to  individual  Portfolio  Accounts, without interacting with the entire portfolio.

Portfolio Accounts may include assets held within a wrap account or the segregation of 'inherited assets'. The ‘Portfolio Accounts’ allow you to segregate assets in a portfolio for any entity.  Some benefits of using Portfolio Accounts are summarised below:

• Allows you to individually report on Portfolio Accounts within a portfolio. For example, you are able to review the specific asset allocation or performance for a set of investments within a Portfolio Account, as opposed to that of an entire portfolio.
  
  
• Allows you to Review the underlying investment exposure for one Investment across all Portfolio Accounts, i.e. total exposure to BHP.ASX across all portfolios and Portfolio Account.
  
  
• Datafeeds automatically create a Portfolio Account. Investment Datafeeds update the underlying investment holdings & transactions.

Create a Portfolio Account

On occasion, you may need to create a portfolio which doesn’t haven’t a datafeed available or requires manually entered data. To Understand how to create Portfolio Accounts:

• To view the IRESS Insights Video, please view the following link here. (Created by Anthony Derriscott on July 28, 2016) 

Creating Portfolio Account via Add Button (Account)

To add a transaction via the Add Button:

1. In the client navigation menu, locate and click on Portfolios. The menu will expand. 
   
   
   
   
2. Click on Portfolio. The menu options will expand. 
   
   
3. Click on The menu options will expand.
   
   
4. Select the Add button, then select Add Account
   
   
5. Continue to the Enter details of the Account below

Creating a Portfolio Account via Cash & Accounts

While accessing a client record:

1.  Go to Portfolio > Admin > Cash & Accounts
   
   You will see in the image below, there are accounts in this clients’ portfolio.
   (If you are setting corporate actions please click here)
   
   
   
   
   
2. To create a new account, select Add Portfolio Account.
   
   
3. You will be taken to the Basic Details screen to enter the account details.
   
   
4. Continue to Enter the details of the Account below

Enter the details of the Account

1. Account - Enter the Portfolio Account name e.g. MLC Masterkey Super
   
   
2. Investment Risk Profile – Enter the investment risk profile of the account. This provides a target asset allocation that will override any risk profile set in the client focus area.
   
   
3. Include in Corporate Actions – Portfolio Accounts can be selected to either deny or allow access to the corporate action templates for a Portfolio Account.
   
   
   • Allow Application – When set to ‘Allow application’, distributions that are not reinvested will be paid to either the specified cash account for the holding or the default cash account.
     
     
   • Deny Application - The Deny application is used to avoid a portfolio from being affected by corporate actions, such as for wrap accounts or Portfolio Accounts that are updated by datafeeds. When a CMT datafeed is being received, the recommended setting is Deny. Distributions are usually included in the datafeed and this prevents double counting.
     
     
   • Allow/Deny Income Cash – This will execute dividends and create income transactions but will not be linked to the default cash account (paid out instead of reinvested).
     
     
   • Allow/Deny Capital Cash – Controls whether the cash effect of capital corporate actions (i.e. rights issue) are recorded. A stock movement can be recorded without a linked cash effect for payment or proceeds against a default cash asset.
     
     
   • Allow application, but deny income and capital cash – This will enable the Portfolio Account to execute both income and capital action events without generating any linked cash effect against the default cash asset.
     
     
4. FUM Scale - Select the FUM scale to use for this Portfolio Account, which can be different to the client's FUM scale. Select ‘Use Client's FUM Scale’ to use the client's default FUM Scale.
   
   If ‘No FUM Scale Set’ is selected, the Portfolio Account can be excluded from FUM calculations depending on the system FUM configuration.
   
   
5. Disclosure Fee - Set the platform fee for the Portfolio Account if necessary.
   
   
6. Account Lock Date – No changes can be made to transactions earlier or on the lock date.
   
   
7. Master Link Account:  Allows for two Portfolio Accounts which have duplicate positions of a security to be linked for IRR reporting purposes. The account selected here is the main account
   
   
8. Fields that should be completed at a minimum, include:
   
   
   • Account: Enter the Account details. E.g. Account Number, name or another meaningful descriptor.
     
     
   • Account Name: Enter the Account Name. E.g. Provider or other meaningful name e.g. Joe’s Suncorp Super Fund.
     
     
   • Include in Corporate Actions: This will determine whether you can execute corporate actions for this account.
     
     

     Tip: This is the name of the Portfolio Account that appears in the Portfolio position screen (see image below)

     
     
     
     

     Note: The default setting is that corporate actions will will be denied i.e. cannot be executed for the account.

• It can also be helpful to other users to select an (See images below): 
  
  
  • Account Type
    
    
    
    
  • Account Status
    
     
    
    
    
• Click the Supplementary tab:
  
  
  
  
  • Client Access Permissions – Can provide clients with Client Online Access the permission to edit transactions and apply corporate actions.
    
    
• Basic Details tab, there are also several other useful tabs that you may wish to review e.g. Bank Details – which allows you to enter the account Bank Account Details for an account e.g. BSB & Account Number.
  
  
  
  
• Click OK. You will return to the Portfolio > Position screen where you will be able to see the Portfolio Account created using the Portfolio Account drop down box