Automatic rebalancing will now operate at model portfolio level, rather than account level, and you will now have more options to determine when rebalancing is triggered.
Rebalancing can be done:
- On a frequency basis (monthly, quarterly, half yearly, or yearly)
- When an asset breaches a percentage tolerance, which can be specified by you
- Or on a frequency and tolerance basis
Migration of automatic rebalancing instructions
We have taken every step to ensure you clients' existing automatic rebalancing instructions can continue undisturbed after migration. The solution will involve the use of our model portfolio functionality which you can read more about below.
For accounts with automatic rebalancing that are linked to a model portfolio:
- An 'open to new business' version of your existing model portfolio will be created.
- Plus, a maximum of three additional versions will be created for each rebalancing frequency that your clients have previously selected (quarterly/half yearly/yearly).
- If you have accounts that have the same rebalancing frequency selected (for example quarterly) but that rebalance on different months, we will align these all to the most common month for each frequency to minimise the number of model versions you will see after migration.
For accounts with automatic rebalancing that are not linked to a model portfolio
- We will create a bespoke model portfolio that matches the rebalancing instruction that the client has given.
- You will be able to identify the model portfolio as it will carry your client's initials, surname, account number and rebalancing frequency in the model portfolio name (e.g. 'J SMITH 100012345 Y Rebal').
To reduce the number of portfolios created through the migration of automatic rebalancing instructions, you may wish to move all clients with automatic rebalancing to the same frequency.