Rebalancing Group Settings

Contents

Introduction

The Rebalancing Group Configuration section of the Rebalancing Group Settings page allows you to view and change information related to rebalancing groups. Below, you'll find detailed information about the available settings for your rebalancing groups, as well as other information you can review.

Note

At the top of the page, you also have the option to view allocations for the group by clicking Rebalancing Group Allocation. For more information, see Rebalancing Group Allocations.

For more information on creating, editing, or deleting rebalancing groups, see Create, Edit, and Delete Rebalancing Groups.

Rebalancing Information

When viewing a rebalancing group, you can see the Rebalancing Group ID and Rebalancing Group Name at the top. Below, you can see the Total Rebalancing Group Value, based on the combined account values for all accounts in the rebalancing group.

You can also view the Trade Summary and Rebalance Summary for the rebalancing group, as well as add a note at the rebalancing group level.

Accounts

Under Accounts included in this rebalancing group, you can see the individual accounts in the rebalancing group. You can also add and remove accounts from the rebalancing group here. For more information, see Create, Edit, and Delete Rebalancing Groups.

Rebalancing Group Settings Descriptions

The following is a detailed description of settings available for your rebalancing groups:

Setting

More Information

Current Rebalance Setting

Choose your preferred default rebalance type for the rebalancing group by clicking the link. The following dialog box appears, allowing you to change the default rebalance type.

Note

If you change the rebalance type for a rebalancing group, Advisor Rebalancing will change the rebalance settings for the underlying accounts to the rebalance type you select.

Model

Select the model for the rebalancing group from the list. This model will represent the overall strategy for the rebalancing group.

Best Practice

Submodels and Security Level models are not typically assigned to rebalancing groups or accounts. In order to shorten this list, edit the Allocation model or Security Level model and clear the Available to assign directly to an account or rebalancing group check box to reduce number of model options you see listed.

Rebalancing Group ID (required)

Type a unique identifier using words or numbers—for example, Earl and Allison Carter Family—to identify this particular rebalancing group.

This ID will display where the account number normally shows for individual accounts. This is the Rebalancing Group ID that is used in your portfolio accounting system (PAS).

Rebalancing Group Name

Type a name or identification number for the rebalancing group. This is a custom title will display where the Account Description field is for individual accounts.

This can be the same as the Rebalancing Group ID field.

Allocation Preference

Choose how you'd like to allocate holdings among the accounts in the rebalancing group. This setting determines how your asset location preference label priorities and model priorities are applied during a rebalance.

Asset location preference labels can be thought of as a set of priorities; these priorities, as well as model priorities, are established on the Asset Location page. For more information, see Learn More About Asset Location and Priorities.

These options are available:

Reallocate Using Current Allocation (default)	This option reallocates securities based on the most favorable model priorities and asset location preference labels you set. Allocates securities at the Security Level model level using the following logic: Advisor Rebalancing looks for all Security Level models that are above the rebalancing group's goal percentage. Overweight Security Level models are sold down to the rebalancing group's goal, starting with selling the least preferred model priority in the least preferred asset location preference label. Available cash and cash generated from the sells is used to purchase securities in underweight Security Level models, starting with the most favorable model priority in the most preferred asset location preference label. Best Practice This option is recommended as it is the most conservative application of asset location priorities in terms of the number of trades that Advisor Rebalancing will recommend.
Allocate as Individual	This option bypasses any asset location preferences you've set and strictly applies the model to each account in the rebalancing group by reallocating each account to match the account's model. Example The Smith family opens trust accounts for three children and each account is the same value. You place these accounts in a rebalancing group and give the group the Allocate as Individual preference. This way, allocation of securities is equal in each of the three trust accounts for the children.
Complete Reallocation	This option fully reallocates each account to match preferences and model priorities and, during a rebalance, treats the entire group as if it's cash. This option produces the most number of trades and is the most aggressive option. Securities are allocated using the following logic: Advisor Rebalancing reallocates each account in the rebalancing group to asset location preference priorities. Assets not held in accounts with the preferred asset location preference label are moved to the account with the highest priority asset location preference label.
Reallocate Based on Asset Location Preference	This option reallocates based primarily on asset location preference labels. If an account within the rebalancing group holds a Security Level model that is not overweight and, by established asset location priorities, is in the correct account type, the position will remain in that account. If an account within the rebalancing group holds a Security Level model that, by established asset location priorities, should be held by an account with a different asset location preference label, Advisor Rebalancing reallocates securities using the following logic: Advisor Rebalancing recommends a sell from that Security Level model and a buy into an account with the preferred asset location preference label. Any remaining overweight Security Level models are sold down to their model goals. Available cash and cash generated from the sells is used to purchase securities in underweight Security Level models, starting with the most favorable models in accounts with the most preferred asset location preference labels. Best Practice This option is not recommended for most firms.

Is this a prospect/test Rebalancing Group?

Select only if this rebalancing group is for analysis or testing purposes. When selected, you may complete rebalances in the rebalancing group, but you cannot approve trades or create trade files for the rebalancing group.

Allow Buying and Selling of the Same Security Level Model

(selected by default)

Select to allow buying and selling of securities of the same Security Level model within the rebalancing group. Selecting this option gives Advisor Rebalancing greater flexibility to move assets into preferred account types by recommending buys and sells for the same Security Level models across different accounts in the rebalancing group.

When not selected, Advisor Rebalancing will not propose buys and sells in the same security for different accounts in the rebalancing group.

Best Practice

This option is selected by default. Leave this option selected as it allows you to swap assets in a model from one account to another.

Contents

Introduction

Note

Rebalancing Group Configuration Page

Search

Rebalancing Information

Accounts

Settings

Rebalancing Group Settings Descriptions

Note

Best Practice

Best Practice

Example

Best Practice

Best Practice