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July 2013 - What's New in Advisor Rebalancing

Contents

Tactical Rebalancing for Allocation Models

Designate a Ticker for an SMA Via the Account Information Upload

New Default Settings for Directed Trades

Difference Percent (Relative) and Difference Percent (Absolute) Columns on Trade Review

Learn More - Watch the Release Video

 

Tactical Rebalancing for Allocation Models

Today, most of you use tactical rebalances to rebalance your accounts against one or more Security Level models. This rebalance type is particularly useful when you have several Security Level models within an Allocation model, and you want to rebalance tactically against a particular asset class.

In this release, we've added tactical rebalancing for Allocation models. This new feature will recommend buys and sells based on the goals of the Allocation model and makes it easy for you to target specific model reallocations to meet your investment objectives. While setting up your Tactical Rebalance and selecting an Allocation model, all underlying allocation and security level models will be included in the rebalance.

In addition to adding tactical rebalancing for Allocation models, Advisor Rebalancing can either use the account's model goal or maintain the account's current weight for the selected models. This feature will allow you to choose a tier of your Allocation model and rebalance the underlying models while maintaining your current weight held at any tier.

For example, let's say you have an account that is assigned to a 60/40 Equity/Fixed Income model, but you would only like to rebalance the Equity portion, which is currently 63 percent of the account. If you perform a tactical rebalance on the Equities Allocation model and select the Use current weight option, the Equities allocation model will be temporarily adjusted to 63 percent of the account — essentially rebalancing the account back to the underlying model goals while still preserving the current split between asset classes.

Example

With the model above, if the Equity Allocation model was selected, the weight of Equity top tier would remain 70% (if 70% is within the model's min/max goal range). However, Domestic Equity and International Equity would be readjusted to be 50% of Equity (35% each). Large Cap and Small Cap will also have their targets adjusted to 50% of the new target for Domestic Equity (17.5% each).

Learn More >>

Designate a Ticker for an SMA Via the Account Information Upload

Today, many of you designate your SMA funding accounts via an uploaded data set. However, you can only specify the ticker for the SMA on the Account Settings page. With this release, you can now designate the account's SMA ticker via the Account Information upload data set when the SMA is represented by only one ticker.

To designate the ticker to use for an SMA, simply add the column SMATicker to the Account Information data upload set.

Field name SMATicker
Valid characters A..Z0..9-$./_
Description When this field has a value, the account will be marked as an SMA and will be represented by 100 percent allocation to this ticker.
Field condition Not Required
Data type String
Size 12
Digits 0

New Default Settings for Directed Trades

With this release, we've made some changes to the default behavior for directed trades. You can change the default behavior on the System Settings page.

In addition, Advisor Rebalancing will always complete a linked trade or mutual fund swap with negative cash if the cash position for the account is improved or if there is no change in the cash position.

The System Settings page now includes the following options:

Difference Percent (Relative) and Difference Percent (Absolute) Columns on Trade Review

We've added a Difference Percent (Relative) column and a Difference Percent (Absolute) column to the Trade Review page.

To add these columns, click the on the Trade Review page.

Learn More - Watch the Release Video