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The Mutual Fund Modeling module efficiently manages mutual fund
portfolios. You can use it
to easily maintain the proper mix for each account’s portfolio to assure
compliance with your
clients’ investment objectives.
The module analyzes accounts and creates mutual fund trades to bring each
account within
the parameters of the assigned model.
With Portfolio Modeling you could have more than 1200 models with up to 30
mutual funds in
each model. Each account that participates in modeling would be assigned to one
of these
models.
Even though this module was designed for publicly traded mutual funds, it can
easily be
used for pooled income funds, common trust funds or other private investment
vehicles.
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Use Portfolio Modeling for
these functions: |
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- Spread the assets for a new account to fit the model.
- Spread additional contributions made to an existing account.
- Raise cash to make a disbursement, where assets are sold based on model allocation
percentages. When processing for a single account, you can enter the amount of
cash that should be reserved above the standard cash percentage.
- Reallocate an account after assigning it to a different model.
- Rebalance all accounts in a model when market changes suggest revisions to the model.
- Rebalance all accounts on a quarterly basis, or other regular schedule, as needed to
fit the model allocation.
- Raise cash to take trust fees.
- Sell all mutual fund positions in preparation for closing an account.
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When running the program, you can: |
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- Rebalance a single account or an entire model group.
- Specify a threshold amount to prevent small trades.
- Print a preview report or actually create trades.
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Assets other than mutual funds will
automatically be excluded from the modeling analysis.
This allows an account to hold other types of assets (such as common
stock or real estate)
without any additional setup or maintenance.
You can also exclude any mutual fund tax lot from modeling. This will
prevent an automated
sale of mutual funds that should be held in excess of the model
percentages. |
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Each modeling run
includes three programs: |
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- Generate Reallocations analyzes each account and creates trade transactions.
Liquidation transactions are created as shares. Purchases and partial redemptions
are created as dollars. These transactions are automatically suspended until they are
released.
- Consolidate Trades prints a report of these transactions, with the information you
need to place your trades in the real world. This report gives you the option to net
sales and purchases or trade them separately. Short-term redemption fee calculations
would work the same regardless of how the trade is placed.
- Release Reallocations completes the transactions after the NAV is known the next
morning. This program calculates the dollars for liquidation transactions and
calculates the shares for purchase and partial redemption transactions.
The transactions are then ready to post.
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BENEFITS:
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The Mutual Fund Modeling Module adds value to the core system by … |
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- increasing the efficiency of mutual fund portfolio management.
- reducing the potential for calculation errors.
- accomplishing your clients’ investment objectives with ease.
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COMPLEMENTARY MODULES:
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- Interactive Data Pricing is an easy way to import the NAV for each mutual fund
before calculating the modeling trades.
- Matrix Interface will import the NAV for mutual funds in your portfolio, place the
trades with the fund companies and receive execution confirmations the following day.
(This interface is currently in development.)
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