Understanding model portfolios

A model portfolio is a pre-defined target asset allocation that helps you implement an investment strategy consistently across a group of clients with similar goals. It sets out which assets should be held and in what proportion, so you can apply the same approach efficiently across multiple accounts.

See below for how you can:

• create a model portfolio
• link an account to a model portfolio
• unlink an account from a model portfolio
• rebalance a model portfolio.

To view the model portfolios you have access to:

1. Log in to Adviser Online
2. Select Transacting from the side navigation menu
3. Select Model portfolios.

You can check whether your client's account is linked to a model portfolio via the ‘Invest’ tab within your client’s wrap account in Adviser Online.

1. Log in to Adviser Online
2. Select Clients from the side navigation menu
3. Select Account list
4. Select the wrap account you want to view
5. Select the Invest tab
6. Select the Administration tab. Model portfolio details appear under the ‘Investment management tools’ section.

The model linking history shows when an account was linked to, or unlinked from, a model portfolio over time.

1. Log in to Adviser Online
2. Select Clients from the side navigation menu
3. Select Account list
4. Select the wrap account you want to view
5. Select the Invest tab, then the Administration tab
6. Under ‘Investment management tools’, open the Model portfolio section
7. Select View linked model history.

1. Log in to Adviser Online
2. Select Transacting from the side navigation menu
3. Select Model portfolios
4. Select the relevant model from the list
5. From the ‘Model details’ page, select View version history
6. Select a version
7. Select View version history (Please note, this option won’t appear for model portfolios in ‘Draft’ status, or for model portfolios with no previous versions). 

A model portfolio can help you more 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 (i.e. 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 adviser codes that your own 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 based on the products selected to be linked to the model from the ‘Account types’ option:
    • If you’ve selected the Accumulator or Engage account type, the available investment types will be limited to their investment menus
    • 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 and add your allocations
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 you’re not able to complete the set-up process, selecting Save & Exit will save the model in an ‘Active – not authorised’ state to be updated later.
 

Investing in term deposits and SMAs

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.
• SMAs can't be included in a model portfolio.
   

To link an account to a model in Adviser Online:
 

Link from Administration:

1. Log in to Adviser Online
2. Select Clients, then Accounts
3. Search for and select your client's wrap account
4. Select Invest, then Administration 
5. Under Investment management tools, expand the Model portfolio accordion and select the Link account to model button to launch the wizard 
6. Search and select the model that will be linked to the account
7. Select Next to review the request
8. Select Submit.

Link from model portfolio list:

1. Log in to Adviser Online
2. Select Transacting, then Model portfolios
3. Locate the model that you want to link to your client's wrap account
4. Select Link accounts from the actions menu on the model row to launch the linking accounts wizard
5. Select your client’s account. You can select multiple client’s accounts to perform a bulk linkage. 
6. Select Next. If there are any accounts with existing ACM plans linked to another model, you’ll be prompted to review and confirm if the existing ACM plan should be updated to the new model or cancelled. 
7. Select Submit.

You’ll also find the option to link accounts in the ‘Linked accounts’ tile within the model details page.

There are several reasons why you might not be able to link accounts to a model. This includes but is not limited to:

• You don’t have Full transact authority on the account. 
• The model is in a ‘Draft’ or ‘Suspended’ status. Accounts cannot be linked to models in this status. Either publish or update the model to an ‘Active’ status before linking accounts. 
• The account has an incompatible automatic plan (dollar cost averaging, periodic rebalancing) set up already. 
• The model portfolio’s configuration doesn’t match your client’s account type.

In these scenarios, you may see a ‘Failed’ request status on the request submission screen.

To unlink an account from a model portfolio in Adviser Online:
 

Unlink from administration:

1. Log in to Adviser Online
2. Select Clients, then Accounts
3. Search for and select your client's wrap account
4. Select Invest, then Administration 
5. Under ‘Investment management tools’, expand the Model portfolio accordion and select the Unlink from model button
6. Select Unlink account.

Unlink from Model portfolios list:

1. Log in to Adviser Online
2. Select Transacting, then Model portfolios
3. Locate the model that you want to unlink from your client's wrap account
4. Select Unlink accounts from the actions menu on the model row. This will launch the Unlink accounts from model portfolio wizard.
5. Select your client’s account. You can select multiple client’s accounts to unlink at the same time. 
6. Select Next. If there are any accounts with existing ACM plans link to the model, they’ll be cancelled. 
7. Select Submit.

You’ll also find the option to unlink accounts in the ‘Linked accounts’ tile within the ‘Model details’ page.

You can rebalance a model portfolio:

• at an account level
• at a bulk level.

The default order status determines whether bulk model rebalance orders are sent to market or held for approval. It doesn't apply to account-level rebalances.

If the model contains listed securities, all orders are generated with a ‘Pending’ status, regardless of preference settings.

Managed fund orders are generated with a ‘Pending’ status if the adviser has limited transact authority over the account.

1. Log in to Adviser Online
2. Select Transacting from the side menu
3. Select Bulk Wholesale Managed Investments
4. Select the Adviser, Account type and Order type. 
   • Please note, the account type selected will determine the managed funds that can be traded. For example, if ‘All’ is selected including Super Accumulator, the managed funds you can select from will be limited to those available on the Super Accumulator investment menu.
5. Select the Security name and Adviser fee if applicable
6. Select accounts to review and tailor your selection
7. Select the tick box next to the account to include it in the trade and enter the amount
8. Select Continue
9. Review the orders, confirm the terms and conditions
10. Enter your Macquarie ID and password and select Bulk authorise.

Automatic cash management (ACM) can be used to efficiently manage cash within accounts linked to a model portfolio. This will ensure that changes made to the model will automatically flow through to the ACM plan without any additional work.

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 either the account name or account number. Please note, you must link an account to the model before you can proceed.
6. Select either a maximum plan, a minimum plan or both
7. Enter the $ or % triggers and targets
   • Here you can also set a maximum investment limit on ACM orders so that application orders which exceed the investment limit won't be automatically executed (i.e. orders will be generated with a pending status)
8. Select the allocation method and the investments that you wish to buy and/or sell when the plans run. The investment allocation allows users to: 
   • select model portfolio as an investment within ACM, or 
   • specify managed funds to buy (max plan) or sell (min plan)
9. For retail clients, confirm whether personal advice has been provided 
10. Once you’ve entered all the details, enter your access code and password and select Authorise.

Please note, when integrating a model portfolio with ACM for a retail client, advisers will be required to confirm that personal advice has been provided recommending the account holder/s regularly invest in each of the products within the model portfolio. 

Once established, the plan will run on the 20th of each month. If the 20th falls on a weekend it will run on the next business day.
 

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.