Contents

Introduction Models and Your Strategy Why Use Models?  Model Concepts Model Priorities

 

Introduction

The core of your Tamarac Trading workflow starts with models. Models are the basic building blocks used to build and maintain your clients' holdings. The models you create serve as a framework that can then be applied to and customized for your clients, allowing you to maintain your clients' investment objectives.

Models and Your Strategy

Tamarac Trading gives you the flexibility to create models with different strategies in mind, including the following: 

• Models built for a specific asset allocation strategy

• Models with a security-based strategy

• Models that mimic an index

• Models with custom strategies for one client

Why Use Models? 

The models you create offer the following benefits: 

• Efficiency.Models are efficient because they streamline investment objectives.

• Consistency.Models create consistency across client accounts by centralizing strategic investment decisions. Once you create models in Tamarac Trading, they can be assigned to multiple accounts that have similar investment objectives.

• Compliance.Models can also support compliance by ensuring that accounts adhere to the strategy outlined in clients' investment policy statements.

• Control.The model structure allows you to monitor portfolio drift within your clients' accounts.

Model Concepts

The following are settings and concepts you'll encounter when it comes to models: 

• Model Types.There are two types of models, Security Level models and Allocation models. For more detailed information and examples, see Introduction to the Types of Models.

• Goals and Ranks.During a rebalance, Tamarac Trading will prioritize trades in goal and rank-based models differently. For more detailed information and examples, see Goals and Ranks in Models.

• Static vs. Dynamic.Targets in your models are influenced by whether the model is static or dynamic. For more detailed information and examples, see Static and Dynamic Logic in Models.

• Min/Max Logic in Models.During a rebalance, min/max preferences in your models influence the trades Tamarac Trading will recommend by creating a tolerance band around acceptable model targets. For more detailed information and examples, see Min/Max Logic in Models.

Model Priorities

Setting asset location preferences and priorities allows you to specify where assets will be placed in a group during the rebalance process. This is a useful tool because it can mean more tax-advantaged placement of assets and potentially higher returns because of reduced tax burden.

For more information, see Learn More about Asset Location and Priorities.