Creating and rebalancing model portfolios

Functionality to create and rebalance model portfolios has been centralised into the Perpetual Service Delivery team. You can find out further information by contacting asset.inbox@perpetual.com.au.

A model portfolio can help you efficiently manage your client’s investments. You can create and manage model portfolios in Adviser Online:

1. Log in to Adviser Online
2. Select Transacting from the side menu
3. Select Model Portfolios
4. Select the Model portfolios in Wrap Online link
5. Select Models
6. Select Create new model
7. Enter a model name and appropriate description
8. Choose a model owner. This will be the adviser responsible for editing and managing this model
9. Add any adviser codes that need access to this model. Please note you can only add codes that your access code has access to
10. Select the account types to be linked to the model. The investment menu will only include investments available to all account types selected
11. Choose the investment types you want to include in the model. The available investment types are derived from the products selected to be linked to the model from the Account Types option.
    • You can also choose whether to include cash or exclude cash from the model
12. Choose a model status. A status of Active will be available once authorised.
13. Search for the required investments, add your allocations and tolerances
14. Select Next
15. The options on this page are only relevant to bulk level rebalances across all accounts linked to this model. 
    • You can make changes to the default options as required including the tolerance, minimum order amounts and the execution method for listed securities
16. Select Next
17. Enter your access code and password and select the Authorise button to complete this process.

If at any time you are not able to complete the set-up process, selecting Save & Exit will save the model in an Active – not authorised state to be updated at a later stage. 

Please note: 

• You can include term deposits (TDs) as a generic asset and allocate them a percentage. However, you can’t transact on individual TDs using a model rebalance.

Please note an account to a model portfolio before you can use it to rebalance.  

To rebalance an account using a model portfolio:

1. Log in to Adviser Online
2. Select Transacting from the side menu
3. Select Model portfolios
4. Select the Model portfolios in Wrap Online link
5. Search for your client via their account name or number. Please note, to search for clients not linked to a model, untick the box ‘Accounts linked to a model’.
6. Select Options
7. Select Review portfolio (current vs target). This will display your client’s portfolio including their model and non-model investments
8. Select the Options dropdown on the top right of the Review portfolio page to access additional client review functions:
   • Check compliance - This will run a compliance check on rebalance orders (e.g. against trustee limits for super and pension accounts) and show any errors or warning messages.
   • Invest additional cash in model - This lets you invest additional cash to the model that will be used to generate additional acquisition orders in the rebalance process. Please note this option isn’t available if the Cash hub is included in the model’s investment types.
   • Withdraw cash from model - This lets you specify an amount of cash to be produced from generated rebalance orders. This amount will be left in cash as surplus.
9. Assess the model investments
   • You can also sell down non-model investments at this point.
   • A variance may occur due to rounding, excluded trades or any amendments to trade values
10. Select Continue
11. Select your execution method, funding method, and trade priorities (this page will only appear if the rebalance includes listed securities)
12. Select Generate orders
13. Enter your password
14. Select Authorise.

You’ll see a confirmation screen to confirm the rebalance is in progress. 

Bulk transacting allows you to buy, redeem or switch managed funds at a bulk level.

1. Login to Adviser Online
2. Select Transacting from the side menu
3. Select Model portfolios
4. Select the Model portfolios in Wrap Online link
5. Select Options and then Rebalance model next to the model portfolio you’re looking to rebalance
6. The ‘Model investments’ section allows you to include/exclude certain model investments. Click on the row to expand the detail panel:
   • For listed securities, you can also set order execution price type (i.e. ‘At Market’ or ‘At Limit’) and priority for buy orders
   • For securities, the priority enables you to nominate the sequence in which listed security buy trades will go to market. Please note, if an investment is being excluded, any rebalance trades will be treated as a variance.
7. Define how the variance will be treated (to/from cash or apportion variance: no cash funding)
8. Enter the model preferences and select Continue
9. Select the accounts and select Continue
10. Review the rebalance. Here you can also click to view a full list of accounts to be rebalanced.
11. Confirm if you’d like to receive email confirmations
12. Enter your Macquarie ID and password and select Continue
13. Here you'll see a confirmation screen of the rebalance. You can download a list of selected accounts (CSV file) to be rebalanced.
14. Select OK to complete the model rebalance session.

The Model Analysis will show you the investment allocation across model investments only. This compares the current investment percentage to the target investment percentage of the model. 

You may see an Error or Warning message next to a trade. You’ll also receive a generic error message at the top of the page if any of the suggested trades have errors or warnings. 

You can sell down non-model investments in the ‘Rebalance model’ section. To do this, expand the investment details and select Yes to include in the rebalance. You can then specify the value to be sold down and press Ok. 

This investment will move up to the model section of the portfolio to be sold down and this will create a variance which will be credited to cash. However, if you want to use the sale proceeds to purchase other assets within the model, you can use the apportion function.