Our switching and rebalancing options have been improved to give you full control over your clients’ investments. To achieve this we have made some changes to our processes that is important you understand to ensure the appropriate outcome for your clients.
Prefunding and net trading
Switch trades are prefunded, reducing time out of the market and in most circumstances we apply net trading to minimise the number of units that are bought and sold to achieve your desired outcome.
Net trading does not apply if you are using our switch by asset options. It is therefore important that you familiarise yourself with the switching options explained below.
If you manage assets using model portfolios then you should use the model portfolio switching options that are outlined on our managing model portfolios webpage.
Options for switching on a client by client basis
Single switch by asset
Why would I use it?
You would use this option if you wanted to sell a specific fund and buy another. This option should only be used if selling and buying loose assets, outside of a model portfolio. An example of a situation this would be used, is looking to switch one fund to another for CGT purposes.
What happens if I choose this option?
All the assets will be sold and repurchased, no net trading will take place. It is key you understand that this option will sell all assets that you specify to sell before repurchasing, which is why you are asked to confirm which assets are to be sold.
Single switch by account
Why would I use it?
Use this option if you want to switch a client who currently has loose assets (assets that are not invested inside a model portfolio) into new loose assets, or if you have a client with multiple investment strategies and you with to switch all assets in one instruction. This option will only ask you what you are buying, it then calculates the most efficient way to get to that position for the client.
What happens if I use this option?
We will only sell and purchase the minimum number of units required to achieve your desired outcome.
If your client has cash within their account, then this will be switched into your chosen assets, therefore if you require a cash holding please specify this when choosing your assets to ‘buy’.
IMPORTANT
If you are running model portfolios, you should use the model portfolio switch out option because the single switch by account option will sell all assets held by a client, so if they hold a model portfolio and loose assets, all assets will be sold.
Bulk switching
Both of the options outlined above can also be instructed across multiple clients at any one time, making it quick and easy to manage your clients’ assets.
The summary table below gives you a quick overview of our switching options.
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Switch journey |
What does this switch journey allow me to do? |
How does it trade? |
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Switch by account (selected at client level) |
Choose the accounts you want to switch for an individual client |
Net trades - Only sells required units to achieve desired outcome. The whole account will be switched, including cash. |
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Switch by assets (selected at client level) |
Choose up to 5 assets (funds or exchange traded investments) to switch. *Then choose the relevant tax wrapper for the assets you wish to switch. |
Sells 100% of chosen assets, net trading does not apply. Can be specified as £ or % options. If specified as £ the sell and buy will take place on the same day. If specified as a % the buy will take place after the sale trades have been confirmed. |
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Switch by account (selected at account level) |
Choose the account you want to switch for an individual client
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Net trades - only sells required units to achieve desired outcome. The whole account will be switched, including cash.
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Switch by assets (selected at account level)
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Choose assets (funds or exchange traded investments) to switch
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Sells a selected percentage of chosen assets, net trading does not apply. Can be specified as £ or % options, if specified as £ the sell and buy will take place on the same day. If specified as % the buy will take place after the sale trades have been confirmed. |
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Switch by account - multiple clients |
Select multiple clients and choose which accounts to switch for each client. |
Net trades - Only sells required units to achieve desired outcome. The whole account will be switched, including cash. |
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Switch by assets - multiple clients
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Choose up to 5 assets (Funds or ETIs) Then choose relevant sub-accounts currently holding the assets that you wish to switch
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Sells 100% of chosen assets, net trading does not apply. Can be specified as £ or % options, if specified as £ the sell and buy will take place on the same day. If specified as % the buy will take place after the sale trades have been confirmed.
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For more information on how to use our switching options, please see our ‘How do I?’ user guides in the 'Guides and training' section of the hub.
Switching between share classes
If you switch between share classes of the same asset it will show as a disposal in the CGT tool and on the CGT Report and cannot be corrected. We will be looking to deliver share class conversion functionality shortly which, when available, will allow a client to move from one share class to another without the transaction being deemed a disposal for CGT purposes. If the use of the CGT tool and CGT Reporting is required as part of your planning on this account it may be worth considering waiting until next year when the functionality is delivered.
Useful Hub articles
Advisers who are interested in switching also found the following How Do I videos useful.
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Switching when not using model portfolios |
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How do I switch funds by account |
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How do I switch funds by asset |