Understanding Asset allocation reporting

Asset allocation reports provide your clients with a snapshot of their portfolio composition across core asset classes.

You can access this reporting online through:

• asset allocation reporting in Adviser Online
• asset allocation - detailed reporting in Wrap Online
• Portfolio Review Report (PRR) in Wrap Online

We also provide this in our annual statements. 

These reports are indicative and may differ between portals. This is explained further below.

Asset allocation reports are prepared using managed fund data sourced from third parties, including Morningstar Australasia Pty Limited and fund managers. As an adviser, you (or your licensee) may also override certain allocations. Please note that we don’t independently verify its accuracy.

The reporting doesn’t look through to the underlying asset classes of the following when they’re held directly in a wrap account.

• ASX-listed Exchange-Traded Funds (ETFs), which are classified as ‘Shares – Australian’
• ETFs listed on an international stock exchange, which are classified as ‘Shares – International’ 
• ASX-listed hybrid securities, which are classified as ‘Fixed Interest – Australian’.

If ETFs or hybrid securities are held through an investment option (e.g. a managed fund or a Separately Managed Account), the product issuer may treat these differently and look through to the ETF or hybrid.

The detailed asset allocation report is only available in Wrap Online. All asset allocation reports use the latest asset allocation information available at the time the report is generated, including reports run for historical dates.

The asset allocation benchmark tool makes it easy to analyse the drift in your client’s portfolio asset allocation, away from their benchmark. It’s available for all products and can be used on Adviser Online by ‘asset class’, not at the GICS level.

The asset allocation benchmark tool is available in Adviser Online in Account Overview under the Asset Allocation section.

The asset allocation benchmark tool will appear in the following sections in Adviser Online:

• within the strategic reporting suite (Account Overview and Asset Allocation Override print view)
• as dual pie charts and an additional table with a second option (bar chart) to show the comparison and variance.

Asset allocation benchmarks will also reflect in the following reports:  

• Asset Allocation report 
• Detailed Asset Allocation report  
• Portfolio Snapshot report

Please note: the asset allocation benchmark tool isn’t included in the Portfolio Review Report (PRR). It also isn’t available for your clients when they log in via the client portal.

Any asset allocation benchmarks that were previously set up in Wrap Online will be transferred to Adviser Online.

To turn the asset allocation benchmark tool on:

1. Log into Adviser Online
2. Under the Clients tab in the side navigation, select Accounts
3. Enter the account number you want to set up the asset allocation benchmark tool for
4. Once you’ve confirmed the account, select Account Overview
5. Under the Asset Allocation section, select the Amend asset allocation benchmark button
6. Enter your benchmark in the ‘Proposed benchmark’ column, ensuring that the benchmark totals 100%
7. Select the Review button
8. Select the Submit button
9. Select the View in account overview button to see your client’s asset allocation and benchmark comparison.

Client authorisation required

You don’t need to use the Macquarie Authenticator app or multi-factor authentication to apply an asset allocation benchmark to your client’s account. However, you’ll need to have full transact access to either set up or update the asset allocation benchmark tool.

1. Log into Adviser Online
2. Under the Clients tab in the side navigation, select Accounts
3. Enter the account number you want to switch off the asset allocation benchmark tool for
4. Once you’ve confirmed the account, select Account Overview
5. Under the Asset Allocation section, select the remove benchmark link
6. Select the Remove button in the pop-up window to confirm that you want to switch off the asset allocation benchmark tool.

To provide further flexibility in our reporting, the Flexible Asset Allocation facility allows you to override your client’s default asset allocation to another asset class. Changes are reflected in the asset allocation reporting so clients can see their intended portfolio composition. This won’t impact your client’s tax reporting.

Please note: to use the Flexible Asset Allocation facility, you must have an access code with dealer or adviser access (full/limited/view only). In addition, at least one adviser code must be nominated by the dealer to access the asset allocation override functionality.

Nominate an adviser with access (dealer steps)

1. Log in to Adviser Online with your dealer login
2. Select Clients and then Wrap account administration from the left-hand menu
3. Select Setup or Maintain asset allocation override
4. Select Nominate advisers for asset allocation override
5. Select Modify to nominate (or amend existing) adviser access.

To use the Flexible Asset Allocation facility at a dealer level or as a nominated adviser:

1. Log in to Adviser Online
2. Select Clients and then Wrap account administration from the left-hand menu
3. Select Setup or Maintain asset allocation override
4. Select the required dealer (or adviser) from the drop-down for which the override is to apply
5. Click on the asset type you would like to override by selecting either:
   • o override an asset allocation at Security level, or
   • o override an asset allocation for Managed investments and term deposits
6. To view all the securities or managed investments held by accounts under the dealer or adviser, select either All securities currently held, or All managed investments and term deposits currently held. Alternatively, to view an individual security or managed investments held on the platform, select either Individual security or Individual managed investment
7. Once chosen, select Display
8. To perform an override, select the update link next to the required asset
9. Enter the required percentages for the relevant asset classes. Once the override percentages have been entered, select the update link to save the override.

Once the update has been made, it'll be displayed under the ‘dealer override’ or ‘adviser override’ section.

The overrides conducted will flow through to all adviser and client reports that display an asset allocation including statements. 

Tips for using asset allocation override

• The override percentages can only be up to two decimal places, and the percentages must total 100 per cent or an error message will be shown.
• For listed securities and managed investments, you can change the asset allocation to one of the existing asset classes.
• For term deposits, the asset allocation can be changed to either fixed interest, Australian shares or cash. Overrides can only be made for all term deposits for a dealer or adviser, and they cannot be split across the different asset classes.
• Overrides will also flow through to established asset allocation benchmarking.