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The Asset Allocation Module allows you to easily manage the
investment risk level in each
account. Regular review of portfolios is required for compliance
with the Uniform Prudent
Investors Act.
This module monitors asset classes, not specific securities.
This allows it to work equally
well for accounts that are individually managed as well as
accounts that are modeled, all with
minimal setup time.
Because there are no specific securities involved, this module
identifies accounts that are
outside of the defined allocation parameters. The trades needed
to bring the account back
into alignment would be created by a modeling program or by
individual decision.
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You can define more than 1200 asset allocation codes,
with up to 20 asset groups in each
code. For every asset group, you would define the target allocation
percent, and an
acceptable variance percent. The accounts to be monitored would be
assigned one of these
allocation codes. |
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You can run the analysis for
- single accounts
- all accounts in an allocation code
- a range of accounts
- specific accounts scheduled for an investment review in the tickler system.
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Within any of the groups above, you can further select reports for a single officer.
The report can include all accounts or only those outside of the defined margins. It can be
grouped by allocation code or by officer.
If an account owns assets that are not specified in the allocation code, those percentages
are shown separately. For example, if an allocation code specifies 50% equity, 40% fixed
income and 10% real estate, the actual percentage of those holdings would be compared
with the target percentages. If the account also holds non-marketable assets, those would be
listed in a separate section below, followed by a grand total for the account.
You can print either a summary or detailed format – or both.
The summary format is designed to provide an overview for the trust committee or auditors.
It shows which accounts are outside the target allocations, so that they can be reviewed in
more detail.
The detailed format provides concrete information to make trade decisions. For each asset
group, you can see the target percent, the actual percent, and the dollar amount that is
above or below the target. The details for the group list each asset held with its yield on
market and the unrealized gain or loss, classified by long-term or short-term. If the allocation
in this group needs to be reduced, you can easily select assets to sell according to the
account’s current tax situation. |
The Asset Allocation Module adds value to the core system by … |
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- making it easy for investment decisions to be made in the context of the entire
portfolio rather than in isolation.
- assisting in compliance with the Uniform Prudent Investors Act, which includes
monitoring as part of the obligation of the manager of trust assets.
- reducing the liability of the Trustee through regular allocation review.
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- Interactive Data Pricing is an easy way to
import current market values before
analyzing the allocations.
- Matrix Interface can import the NAV for
mutual funds in your portfolio. This interface
is currently in development.
- FinTech Securities can execute the equity
trades after they have been entered in the
system. All data is electronically passed between TrustNet and FinTech’s
ROX
trading platform. This interface is currently in the final stages of
testing.
- Mutual Fund Modeling can create trades to
reallocate the mutual fund portion of an
account that needs rebalancing.
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