Setting Up & Using Model Portfolios

[bkennedy]

Hi
I could use some guidance in properly setting up and using the Model Portfolio feature in the Advisor version so that you are able to run Rebalance reports in bulk without the need to individually select each client's allocation model. Thanks.

[Mark]

Hi bkennedy,

Sure, it would go like this:

1) Create sub-portfolios for each model portfolio you want to be able to use
2) Assign a model portfolio to each client under the Properties... of the client's sub-portfolio
3) In the settings for the Rebalance report you choose an allocation target. You can create as many of these as you want. You can create one of the type "Model Portfolio", and you'll see the option to either pick a model portfolio, or optionally "When a portfolio has a model portfolio assigned use that instead". Turn on that option in the definition of your allocation target to use the model portfolio you assigned for each client. If you're not using different model portfolios for each client, you don't need to assign it on a per-client basis.

[bkennedy]

Thanks Mark for your reply.

Here's my point of confusion. I've essentially done as you suggested. My file structure goes like this: Master Portfolios\Model Portfolios\Model #1. There are no investments in these model subportfolios.

However, I cannot seem to find how you create an allocation for the Model Portfolio that you setup. In the Rebal Report, under Allocation Target/Edit, where/how do I assign my allocation to the Model?? For example: 20% to Large Cap, 40% to Small Cap, etc.

I hope this makes sense. Thanks for your help.

Brian

[Mark]

Hi Brian,

- You will need to add investments to your model portfolios, otherwise they are empty... You create investments (Right mouse click, and choose "New Investment...") and assign the values in a manner you want to model. The "Model Portfolio" approach is symbol based, so if you want 10% IBM, 90% Google for example, create 2 investments, one for IBM worth $100 and one for GOOGL worth $900.

- Do you have the Advisor version installed? This feature is only in the Advisor version. When you edit your allocation target, under the "Type" drop-down, select "Model Portfolio".

[bkennedy]

Thanks again Mark. Yes, I have Advisor version installed.

So it sounds like if I would like to use the Asset Type attribute (not Investment Goal, Sector, etc.) and wanted a rebalance report based on asset class, such as Large Cap, Small Cap, International stocks, Fixed Income, etc., (very common) that I would have to pick perhaps an index investment that would capture that asset class and rebalance to it??

Sounds like the model portfolio feature is really designed to setup a new client with specific investments, and not really at the broader asset class level.

Do you have any other suggestions how to bulk report a Rebalance Report?

Thanks again. You've been very helpful.

Brian

[Mark]

Hi Brian,

I assume not all your clients use the same allocation targets, so you can't define 1 allocation target for all clients? There really isn't a good way to do bulk reports with different allocation targets unless you're using the model portfolio allocation type. The only other suggestion I could make is to make multiple passes in your bulk printing, 1 pass for each allocation target you want to use. Each time you would select the clients that use the allocation target you currently have assigned to your Rebalance report.