Wrap platform user guide For adviser, paraplanner and administrator use only

Transcription

1 Wrap platform user guide For adviser, paraplanner and administrator use only

2 Overview The Wrap platform offers a choice of tools to let you rebalance your clients portfolios at any time, so that you can easily bring client holdings into line with any agreed target allocation. This guide covers some of the key processes involved in rebalancing on the Wrap platform. You can rebalance individual clients, or even individual products, using the Rebalance tool described below. Alternatively, the bulk rebalance tool lets you do the same for multiple clients at once. Contents 03 Rebalance process 04 Step 1 Select client 04 Step 2 Target allocation 05 Step 3 Maintain legacy information 06 Step 4 Rebalance 07 Step 5 Review and execute 08 Step 6 Generate review documents and implement advice 09 Placing the deals 10 Check your regular deals/withdrawals 11 Example review/rebalance process 12 Example rebalance checklist The Bulk Rebalance tool allows you to segment the relevant clients to be rebalanced by adviser, product, model portfolio and so on. There are some significant differences between the individual and bulk rebalance tools. These include differences in the reporting options; the inclusion/exclusion of listed securities; the timing of deals; and options around regular deals. See the Bulk Trading (WLP903) user guide for full details. Individual rebalancing 02

3 Rebalance process The first step in the rebalancing process is to find your client s account in the Client tab. Next, select Review and then Target Allocation. You can then review or amend the target allocation for each product and complete the short rebalancing process. If you use model portfolios for your clients, you can update the target allocation/ investment selection for multiple clients at the same time using the Model Portfolio option in the platform s Admin tab. 1 Access client s account 2 Target allocation 3 Review legacy 6 Generate documents and implement advice 5 Review and execute 4 Rebalance Individual rebalancing 03

4 Step 1 Select client Go into your client s account. Select Review and Target Allocation. This displays the current target allocation for the relevant tax wrapper. Step 2 Target allocation TIP We recommend you maintain a cash balance to cover any charges and/or any income requirements. Allocating money to the product Cash account is important for SIPP as the Adviser Charge for SIPP are collected from it. For other tax wrappers, you should allocate money to Wrap Cash to cover charges. Alternatively, you can set up regular withdrawals to generate cash. The rebalance wizard automatically defaults to the last target allocation set for each tax wrapper. To change this, select Edit and then choose either the appropriate Model Portfolio from the dropdown list or select Find to search for funds using the Investment Selection tool. If your client is invested in a model portfolio, however you must select the appropriate model portfolio and then if necessary adjust the cash element at Step 2 of the rebalancing wizard. Refer to The Managing your platform (WLP503) user guide if you need to update your model portfolio before you rebalance. Individual rebalancing 04

5 Step 3 Maintain legacy information You should now select the Rebalance option. The first step is to update any legacy holdings for the client. The reporting options available at the end of the process include a valuation report, so it s worthwhile updating the details of the legacy holdings. But remember that legacy holdings can t be rebalanced, unless they are first re registered to the Wrap account. The Create Orders/New Transfer option allows you to easily request transfers for any legacy assets. At this stage the platform has in built validation to check for non-tradeable funds, open orders and negative holdings within the portfolio. Non-tradeable funds The Rebalance wizard automatically exclude non tradeable funds. When a fund is excluded, the platform recalculates the actual and target weightings and leaves the excluded fund s holding unchanged. The allocation may differ from the target as a result so you may wish to defer rebalancing until the fund becomes tradeable again. This includes funds that are made sell tradeable only. Open orders If there are any open orders when starting the rebalance, details of the deals will be shown here. Depending on the type and size of deals, you may wish to take alternative action. Options include: 1) cancelling any open deals and rebooking them after the rebalance is complete 2) waiting until the deals are filled before carrying out the rebalance 3) proceed with the rebalance as is. The resulting rebalance deals will be adjusted due to these open deals. The adjustment made will depend on the type of deals that are pending. For example, if the open deal is a monetary sale, we ll exclude that fund entirely from the rebalance as we will not know at this stage what proportion of the holding will remain after the sale is completed. If an open order is subsequently not completed for any reason the resulting client allocation will differ from the target allocation. Negative holdings If any of the products held have a negative holding of cash or units in a fund, you ll not be able to carry out a rebalance until that negative position has corrected. Your options are to wait for the negative position to be fixed, then carry out the rebalance. Or carry out sells, buys or switches to bring the client s allocation into line straight away. Individual rebalancing 05

6 Step 4 Rebalance This screen shows all products held by the client. It lists the current weighting in each fund and in each wrapper. Existing trail commission If you sell from within your ISA or Personal Portfolio, your existing commission will be switched off across the tax wrapper. The Wrap platform calculates at fund and asset class levels the difference between the current and target weighting. Colour coding is used to highlight larger discrepancies in the portfolio. A red box indicates the holding is more than 2% away from its target A green box shows the holding is within 2% of its target It doesn t matter if the difference is more or less than 2%, all of the adjustment deals will be carried out unless you decide otherwise. The platform then calculates the monetary value of each adjustment required, i.e. the sale of overweight holdings and purchase of underweight holdings. When you decide to proceed, the sell and buy deals are typically placed simultaneously, in line with the product terms and conditions. Make amendments You may wish to exclude a wrapper from the rebalance. For example, you may want to exclude Personal Portfolio to avoid crystallising any large gains or losses as these may have a tax impact. Select Exclude product from Rebalance to achieve this. Similarly, you may wish to leave the current holding of a specific fund unchanged. Select Exclude next to the fund to exempt it from any changes. Or manually adjust the recommended deal by editing the box marked Difference. Individual rebalancing 06

7 Step 5 Review and execute This screen lists all recommended transactions. The deals to be placed are listed wrapper by wrapper, along with a cash value for each deal and the target set for each fund. You can still make changes at this stage, if you wish. Individual rebalancing 07

8 Step 6 Generate review documents and implement advice If you re authorised to do so, you can rebalance immediately by selecting Submit. Alternatively, you can return to the Rebalance wizard when you wish the rebalance deals to be placed. The wizard will remain in Track workflow > Work in progress, until you resume the process. The deals will be recalculated when you finally submit the rebalance. You may need to have the wizard authorised if your firm operates an authorisation process. TIP Several report options are available. The Client Review report, available in Word and PDF formats, is often a good choice. It illustrates key changes in the portfolio over the period selected, along with a summary of recommended transactions. You can supplement the review with performance, valuation and house view reports. There are some slight differences between the report options and report outputs offered on this screen and those offered on the Reports option in the Client tab. See the Client reports (WLP703) user guide for more details. Individual rebalancing 08

9 Placing the deals The deals, both buys and sells, will be placed in line with T&Cs for the products selected. This can, depending on the investments being bought and sold, be as soon as the next valuation point but refer to the T&Cs for full details. You ll see the deals in Track Orders > Deals/Switches. Contract notes will be generated for all of the deals placed. The Wrap platform won t allow you to rebalance until you ve cleared any negative cash balances. You can do this by either: arranging for units to be sold to generate a cash balance in the account, or making a cash deposit Existing trail commission If you sell from within your ISA or Personal Portfolio, your existing commission will be switched off across the tax wrapper. Individual rebalancing 09

10 Check your regular deals/withdrawals If a target allocation is changed and a rebalance carried out, only existing investments will be rebalanced to the new portfolio weighting. Regular deals will continue to be invested in the original fund selection, in the original proportions. If you wish to redirect regular contributions to the new target allocation, the regular payment or standing batch must be cancelled and another set up. As with any stand alone fund switch, the rebalance wizard will move all current monies from one fund to another but it won t alter the original fund selection for regulars. Only the Bulk Dealing tools allow you to redirect regulars at the same time as carrying out a sell, switch or rebalance. When setting up a regular withdrawal on a client s ISA or Personal Portfolio, you have the option to disinvest from specific funds or you can choose Across Product. If you choose to target specific funds, it s important to review the regular withdrawal after carrying out any switches or changing the target allocation. If you ve switched out of one of the targeted funds, you may wish to cancel and rebook the withdrawal, targeting a replacement fund (or funds) in its place. If you select Across Product, each time the withdrawal sell deals fall due, the platform will identify the prevailing holdings/proportions and generate sell deals accordingly. If the portfolio includes equities though, using Across Product will result in regular sell deals being instructed for these equities, incurring dealing charges. TIP When reviewing regular deals and withdrawals, check for any drawdown information. You ll need to link the deals to the drawdown. Individual rebalancing 10

11 Example review/rebalance process No rebalance required Generate reports on valuation and performance, then issue with market commentary and confirmation that rebalance has not taken place Week 11 Model Portfolios Prepare information to assess current position vs target position Process starts: Dec Mar Jun Sept Review of Model Portfolios using info provided in week 1 Run cash balances report to identify negative cash situations and instruct trades where necessary Review/Amend target allocation using rebalance wizard for each client Generate rebalance report showing required trades Notification issued to client advising rebalance required and requesting a response Agree communications approach ( or post) Action response received from client to instruct rebalance as soon as possible (trades/cash balances allowing) Chase for outstanding client responses Manage responses if no response, follow no rebalance process When responses received from outstanding clients, instruct rebalances as soon as possible Resume rebalance wizard and submit (new values apply) Generate reports on valuation and performance when trades have settled, plus market commentary, then issue with confirmation that rebalance is complete Week 1 Week 2 Week 3/4 Week 5 Week 6/7 Week 8 Week 8/9/10 Amend future regular deals to new fund selection when necessary Client receives confirmation, reports and market commentary Week 9/10/11 Week 9/10/11 Individual rebalancing 11

12 Example rebalance checklist Client Adviser Notes/actions Initial Date review due How should client be invested? (Consider investment selection) Any re registered/switched funds to be excluded/factored in? Any negative cash balances on the client s tax wrapper? Is there a healthy cash balance for charges? (Consider charges, income from drawdown, etc.) Any outstanding deals, premiums or transfers? Any regular premiums/withdrawals for client (including income drawdown)? Update allocation screen to ensure each tax wrapper has a set asset allocation Compile report (run review report and issue to client) Date client consent received Is rebalancing to be completed? (If not, add comments) Is this is a full review, rebalance or both? Execute rebalance (ensure regular premiums changed to take into account fund switches/obsr changes, etc, once main rebalance deals have settled) One week check complete? Confirmation/action taken letter required? Next review date Complete Individual rebalancing 12

13 For additional support, call the Adviser support team on: Calls may be monitored and/or recorded to protect both you and us and to help with our training. Call charges will vary. Standard Life Savings Limited, provider of the Wrap Platform, is registered in Scotland (SC180203) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Savings Limited is authorised and regulated by the Financial Conduct Authority. WLP Standard Life Aberdeen. Images reproduced under licence. All rights reserved.