Overview

This guide will run through how to make changes to the client’s holdings in portfolios, such as how to apply preselected holdings arrangement or to remodel a portfolio back to its original asset ratios. Portfolios can also be modelled manually by building a portfolio proposal, or by applying a model Target Set. A target set consists of a selection of securities and the recommended weighting for each security.

Rebalance a Portfolio Account

Under Client Menu, go to Portfolio > Model > Model and select the account you wish to rebalance under Filter Options. You will then need to navigate to your required account Model – Advanced Mode, under column ‘Type’ select ‘Current’. Click on icon under Model Name and select the target set that is required.

Click Save on the bottom right corner to exist the screen. Going back to Model – Advanced Mode, under column Model Sets – Weight, enter 100% to have the current portfolio account rebalanced to the target model set.

Weight – The percentage of the portfolio account to be effected by the target set. You should now be able to see the proposed adjustments under target Effects.

On the top right hand side of the screen above the Filter Options section, click on ‘Accept as Recommendations’. This will take you to the Portfolios > Model > Recommend screen. You may need to make final adjustments to the proposed model if it is under allocated or over allocated. Please see appendix for notes on modifying an existing holding.

Excluding Securities from the Model

If you have existing direct shares or other securities in the same portfolio account hat you wish to model, you may need to exclude them from being rebalanced. We can achieve this by filtering out these securities.

Under Portfolios > Model > Model, navigate to your required account in Model – Advanced Mode, click on icon under Model and go to the Exclude Security Filters sections, clicking on the icon, add the Security Code of the securities you wish to filter. Then click Save to exit.

Selling and Purchasing Investments – Manual Proposal

Manually building a proposal allows for the planning of proposed changes to an individual client’s portfolio, including adding new investments and adjusting the existing holding amounts.

Note: If you are planning on applying a target model set and then making manual modifications to the portfolio proposal, the target model set should be applied first. Applying a target model set clears all other changes in a proposal.

Under Client Menu, go to Portfolios >Model > Model, select ‘View All’ in Account filter under Filter Options. Then navigate to your required account(s) in Model – Advanced Mode, under column ‘Type’ select ‘Current’ for the portfolio account(s) that you would like to redeem.

On the top right hand side of the screen above the Filter Options section, click on Accept as Recommendations.

This will take you to the Portfolios > Model > Recommend screen. On the top right hand corner, click on “Add” and then “Add Account”. In the “Account” field, type in the name of the Account you are purchasing, then click Ok.

Once you have added in the new Account you will be returned to the Investment Recommendations screen, note down the grand total of the investments you wish to redeem 9this amount should appear at the bottom of the Adjust column as Unallocated).

Navigate to Filter Options for Portfolio Proposal Model then select the Account you created in the previous step. On the top right hand corner, click on “Add’, then “Add Holding”. Click on the magnifying glass icon to search for the investments and add to the account. Enter the ‘Market Value’ of each holding that you are adding and ensure the total matches the redemption amount you noted down earlier.

After adding all the required investments, click Save to go back to the Investment Recommendations screen. Now go back to Filter Options for Portfolio Proposal Model and select View All in Portfolio Account. Ensure the Adjust column balances, you may need to make final adjustments in Investment Recommendations if it is under allocated or over allocated.

Selling and Purchasing Investments – Target Model Set

Target model sets create a portfolio proposal using a saved collection of securities. They can be applied as a percentage of the total portfolio weight (Portfolio Weight Method), or applied to individual portfolio accounts (Current Method). The existing holdings will be changed, with funds being redistributed to match the targets within the model set.

Target model sets can set to portfolio accounts in Basic Mode or Advanced Mode. To switch between the two modes, click Switch to Basic / Advanced Mode. For the purpose of this procedure, we will only be focusing using the Advance Mode.

Firstly, you will need to create a new Portfolio Account for the Investment you are purchasing, go to Portfolios > Admin > Cash & Accounts > Add Portfolio Account. Navigate to Portfolios > Model >Model, select View All in Account filter under Filter Options.

Then navigate to your required account(s) in Model – Advanced Mode, under column Type, select Portfolio Weight and in ‘Weight’ enter 0% for the portfolio account(s) that you would like to redeem. For the investment you wish to purchase, under column Type select Portfolio Weight and in ‘Weight’ enter 100%, then click on to select the model target set and click Save to exit screen. Also ensure ‘Weight’ is 100% for the Model Set.

On the top right hand side of the screen above the Filter Options section, click on Accept as Recommendations. This will take you to the Portfolios àModelà Recommend screen. Finally, check that the Adjust column balances under Investment Recommendations, you may need to make final adjustments in if it is under allocated or over allocated.

Lock Recommendation Prices & Trades

When you revisit the Recommend page that has existing recommendations, the security prices are updated to the current prices. When you have finalised a portfolio modelling proposal, you may wish to lock the prices and trades to prevent them changing. This will also ensure that when you merge a report on your proposal the reported trades will match the prices and units you locked on the Recommend page.

If the Proposal Date is set to a past date and you lock the proposal, the security prices and trades are locked using the past dates prices.

Note:

When a proposal has been locked, XPLAN will still adjust the security prices if the price when locked does not match the actual unit price of the security. Typically this effects fund holdings, as funds only update their unit prices infrequently. This results in a lag between the date the fund value is calculated and the release of the updated price. Until the updated price is available, XPLAN uses the last known price.

To Implement a Portfolio Proposal

Once an acceptable proposal for changing a client’s portfolio has been finalised on the Recommend page, the next step is to apply these changes to their portfolio. Implementing a portfolio proposal to a client portfolio will alter the Adjustment values on the Recommend page to account for the changes.

While accessing a client's portfolio:

1. In the navigation menu, select Portfolios à Model à The Recommend page displays, with a list of each holding change.
2. The Portfolio Account list can be used to display each portfolio account's changes, or View All to display all changes.
3. Click on the top left of the table of holdings, then select Implement to Transaction, to implement changes to client portfolio.

The Adjustment columns are updated on the Recommend page to account for the portfolio changes.