Use of the Model Portfolio in Portfolio Properties

[ricbertsch]

I have assigned model portfolios to sub portfolios and want to know just where does this come into play on the reports. For example, In the Sub Portfolio of Bill Smith IRA I have assigned our model portfolio Balanced.

I read in on the board that the model portfolio can be used in allocation targets for the Rebalance Report. However, when I go to run a Rebalance report for Bill Smith IRA the default allocation is another model that we created and not the Balanced Model Allocation Target that we had assigned. I have to use the drop down in the Allocation Target to arrive at the Balanced Portfolio. Thus, my question "On What Report is the default assigned model portfolio in the Sub Portfolio's Portfolio Properties used?"

Thanks

[Mark]

Hi ricbertsch,

If you press the "Help" button in the Portfolio Properties Dialog there is some explanation/links that should help.

In the Rebalance report you define your allocation targets. If you create/use an allocation target with the settings:

Name: any name you want
Type: Model Portfolio
Model Portfolio: select any one you want to use for those portfolios without an assignment
When a portfolio has a model portfolio assigned use that instead: ON

That will get you what you're looking for.

[ricbertsch]

Mark, thanks but please correct me if I'm wrong.

By Assigning a Model Portfolio in the Portfolio Properties I am only doing it for note purposes only. That is to say the assigning of a model portfolio will not default the Sub Portfolio Rebalance Report to the Assigned Portfolio. You still have to remember what Model you assigned in the Portfolio Properties and then drop down the screen in Allocation Target to the Model that was noted in the Model Portfolio.

If that is the case may I make a suggestion that the Allocation Target in the Rebalance Portfolio default to the Assigned Model entered in the Portfolio's Property.

[Mark]

Hi ricbertsch,

No, that is not correct. It will work the way you are wanting. It will run the Rebalance report against the model portfolio you specified in the Portfolio Properties dialog. That is the point of this option:

When a portfolio has a model portfolio assigned use that instead: ON

Let's take an example. Say you have 3 sub-portfolios:

Sub 1: no model portfolio assigned
Sub 2: Model Port A
Sub 3: Model Port B

If you create an Allocation Target like this:

Name: Varying Model
Type: Model Portfolio
Model Portfolio: Model Port C
When a portfolio has a model portfolio assigned use that instead: ON

And when you run a Rebalance report using the "Varying Model" allocation target on each of your 3 subs, the model portfolio used will be:

Sub 1: Model Port C
Sub 2: Model Port A
Sub 3: Model Port B