Click on the action menu to create the Allocation Profile.
A pop-up ticket will appear.
Name: The name of the allocation profile Status: Who should be able to see the allocation profile Order Algorithm: How the cash should be distributed into orders in the allocation profile. Static balance keeps the original allocation at each rebalance occurrence. Exchange Algorithm: -From Base Currency, from SEK to USD -All To Base Currency, växlar alla positiva saldon till basvaluta samt växlar basvaluta till negativa saldon. -Highest to lowest, Växlar från största positionen till lägsta positionen och gör detta tills det inte finns något negativ saldo.
Create Allocation Item
Press the button "Add Allocations" or click on the action menu at the Instruments.
Choose which instruments that should be included in the allocation profile and which percentage distribution they should have.
The allocation should not be allocated to 100%. We always recommend that you have some buffer in the allocation profile. Otherwise, an error can occur (allocation items is more than 100%), when rounding of orders makes it seem like the amount is more than 100 %.
Connect an account to the allocation profile.
There is a possibility to connect accounts from both the allocation profile and the account. The allocation profile can contain several accounts, but you can only connect one at a time. There are three ways to connect the account to the allocation profile; Click the button "Connect Account" or click the action menu at the Accounts or click at the action menu at the account from the customer account overview.
Select which account you want to connect to the profile and click Confirm.
A small portfolio icon will be visible on the account when it is connected to a portfolio.
Administer the Allocation Profile
The next step when you should administer the allocation profile is to prepare a rebalance of the allocation profile. Click the button "Prepare" or press the action menu at the Allocation Profile.
The rebalance allocates the cash in the accounts according to the allocation of the portfolio. The rebalance will reserve all cash in the account because if there is a need for currency exchange, the price will not be known until the exchange is made and therefore BFS won´t know how much cash to reserve.
A PreTrade-report will be created when the rebalance is made, which contains information on the orders that will be created and if there are any accounts that are excluded because of ongoing trades or that they have a negative balance in the account.
If there are any excluded accounts they will be visible at the tab Excluded Accounts.
Sometimes there are orders that are not valid, which is shown with a red mark in the Pretrade report.
In this case, it is because Min Subscription Amount, which is set on the execution interface for the specific instrument, is greater than the value that came out from the rebalance.
We can always override this by clicking on the action menu in the pre-trade report at the specific instrument and clicking Edit. We can choose to make the order valid by selecting the checkbox and then continuing with the rebalance.
Execute the rebalance. Press the button "Execute" or press the action menu at the PreTrades-list.
The allocation is now executed.
Orders are now created according to the PreTrade-report for the accounts that are connected to the allocation profile. The orders are handled according to the workflow (manual, external fund, mfex) they belong.
An allocation order has also been created for the customer account that connects all orders created by the rebalance.
The allocation order keeps track of which orders were created by the profile 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 an exchange needs to be done before a regular order is placed 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.