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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 a series of asset allocation codes, with unlimited 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.
You can run the analysis for
- single accounts, all accounts, or an SEL
- a single asset allocation code or a range of codes
The report can include all accounts or only those outside of the defined margins.
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.
The report 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.
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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 efficient way to import current market values before analyzing the allocations.
- Portfolio Modeling can create trades to reallocate the mutual fund or pooled fund portion of an account that needs rebalancing.
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