Manage the portfolio
- Lena Birath
Use portfolio management to do mass management of client accounts.
Manage the Allocation Profile
The next step when managing the allocation profile is to prepare a rebalance of all positions or prepare an allocation of cash of the portfolio.
Rebalance: This option prepares the portfolio to rebalance all positions for all accounts. Temporary buy and sell orders are created; however, no actual trades occur until the portfolio is executed.
Cash Allocation: This option prepares the portfolio to allocate cash across all accounts in the portfolio. Temporary buy orders are generated however, no actual trades occur until the portfolio is executed.
Click the button Prepare and you will get two buttons, Rebalance and Allocation.
Prepare - Rebalance
The rebalance process allocates cash across accounts based on the portfolio’s target allocation. All available cash in the account will be reserved because, in cases where currency exchange is required, the price will not be known until the exchange is made and therefore Bricknode won´t know how much cash to reserve.
A PreTrade-report is generated during the rebalance process. This report provides details on the orders that will be created and identifies any accounts accounts excluded from the rebalance due to ongoing trades or negative balances in the account.
We will also get a log and a section where all included accounts are listed.
If there are any excluded accounts they will be listed in the tab Excluded Accounts containing
information on why they were excluded.
Prepare - Cash Allocation
This option prepares the portfolio to allocate cash across all accounts in the portfolio. Temporary buy orders are generated however, no actual trades occur until the portfolio is executed. It will create buy orders according to the allocation which in this case is set to 90%.
Execute the rebalance
Click the Execute button to initiate the rebalance and generate the orders.
A progress bar will show the process of the rebalance.
The allocation is now executed and orders have been created for the customers.
The created orders can be found under the Order tab. These orders are linked to an allocation order. On the right, two sections provide a summary of the created orders and the associated allocation orders.
The allocation order keeps track of which orders were created by the portfolio and when all the orders are done the allocation order releases the reservation and credits back any money that is left on the account. In combination with the fact that all cash is reserved on the account when the allocation order is created, it can be a negative balance on the account when the regular orders are completed and the allocation order is not yet done. But by the time all the regular orders are done the allocation order lets go of the reservation and the negative balance disappears.
If a currency exchange is required before placing a regular order the allocation order keeps track of when the money from the exchange reaches the account and reserves this money to place the regular order, before it can be used or withdrawn from the account.
The orders are handled according to their order route (execution interface). In the top menu Order Management > Allocation Orders you can view the allocation orders.
Click on the + sign to get information on the orders in the allocation.
On the customer overview, we can also find the orders and the allocation order that connects all orders created by the rebalance.
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