Bulk Dealing and Model Portfolio Service

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1 Bulk Dealing and Model Portfolio Service Ad-hoc rebalance This user guide will lead you through the steps involved in ad-hoc rebalancing. Please read this guide in conjunction with the important notes document, as this contains important information with which you should be familiar. The Ad-hoc rebalance allows you to compare a current client account against a model to which it is attached, and to buy/sell securities and retain cash (if required) so that the client account becomes a replica of the model (within the tolerances you have set for it). Alternatively, you can choose to rebalance to a different model than the one to which the account is currently attached. It is also possible to perform an ad-hoc rebalance for either a single client account or across multiple client accounts. An ad-hoc rebalance is a two-phase order in other words, one or more securities are sold and the sale proceeds are then used to buy other securities. As stock markets can be unpredictable and volatile and there may not be a ready market for the security you are selling, the sale may be delayed. As a consequence, the prices of the securities being bought may have changed by the time the orders to buy are executed. This is an inherent risk of an ad-hoc rebalance and accordingly we accept no responsibility for fluctuations in price. Please read this guide in conjunction with the Important notes document for more information on how portfolio switching and two-phase orders are carried out. You cannot specify the number of shares/units to buy in a given stock, and you cannot choose to raise a specific cash amount from the sale of a given stock. Step 1 select accounts Once logged into the Funds & Shares Service dealing area, click on the Models & bulk deals tab in the screen top navigation and select Ad-hoc rebalance from the left-hand navigation. For a client to be listed on the Select accounts page, they must be linked to your SCA number and have available assets that can be rebalanced against another model. Clients whose portfolio is entirely in cash would need to use the Invest into models option. Clicking Select ticks all your clients for inclusion in the instruction. Alternatively, you can select individual clients by using the tick boxes that appear next to their account numbers.

2 The name of the model shown is that which is attached to the client s account. If you want to attach a different model to a client, click the red edit triangle next to the model name and choose the one you require from the dropdown list. You can then rebalance that client to the new model using the ad-hoc rebalance tool. You can select the initial adviser charge percentage you want to take by using the red edit triangle in the Adviser s charge value column. You will need to enter the gross amount including VAT - so if your charge is 1% plus VAT you would need to enter 1.2%. The initial charge automatically defaults to 0%. The initial adviser charge entered will apply to all fund purchases it cannot apply only to some deals for that client. Two different clients using the same model can have different initial charges applied. Also, one client with two different accounts (e.g. a SIPP and an ISA) using the same model can have a different initial adviser charge applied to each account. In the Select accounts page, you can click on the client name (which is shown in red) and this will show a view comparing the existing portfolio to the model portfolio. Clicking Select account will add the account to the ad-hoc rebalance if it is not already included. Clicking Close will return you to the previous view without making any changes. 2

3 Once you are happy with the account selections and the chosen initial adviser charge, click Next. The order will then be validated (as shown below). Clients who have been successfully validated are shown in grey. Clients who require further editing are shown in pink. Clicking Errors only filters the list and shows the clients who require further editing before their order is processed. You can hover over the red i icon in the Error column to display information regarding the failed validation. If you choose to move away from this page before validation is complete, you can re-access the instruction via the Draft instructions page. 3

4 Step 2 review orders Once validation is complete, you can review your orders. This screen shows you the securities involved in the rebalance, and whether they are being bought or sold. You can also delete client orders from the instruction and edit them using the Edit and Delete buttons to the left of the client s account number. For a sell instruction, you can edit the sell quantity (as shown below). For a buy instruction, you can edit the invest percentage (as shown below). 4

5 If you edit the order, clicking Submit allows it to be re-validated. Clicking Cancel simply returns you to the Review orders page. This features a scroll bar underneath the order list, which you can use to see all the details of the order. By scrolling to the right-hand side of the page you will see: Sell quantity or Invest percentage depending on whether the rebalance is a buy or sell. Dealing commission our dealing commission and other charges (if applicable). Adviser charge type (if applicable) as a percentage. Adviser charge value (if applicable) as the percentage you selected in step 1. Total the estimated proceeds for the order. Model the name of the model being rebalanced against. Once all the client orders are validated and appear in grey, you can submit the order using the Submit button. Please be aware that the invest part of the ad hoc rebalance cannot begin until every sell order within the work set is complete. This creates two possible issues, as the clients money may be out of the market for some time, depending upon the nature of the security being sold. The price of the invest security may change by the time this phase of the order can begin. 5

6 Once Submit is clicked, the order cannot be changed. The invest element of the order cannot be cancelled once the sell phase of the order is underway. Please read this guide in conjunction with the Important notes document for more information on how portfolio switching and two-phase orders are carried out. Step 3 confirmation On the Confirmation page you will be given a reference number for the ad-hoc rebalance. You can then track the progress of your order using the links to the Active bulk orders and Executed bulk orders pages. For further information see our guides relating to: Bulk invest Bulk sell Portfolio switching Creating a funds model Link models Invest into models Scheduled rebalance Draft instructions, active and executed bulk orders Important notes If you have any questions about the service, please do not hesitate to call our Dealing Services Team on AJ Bell Management Limited (company number ), AJ Bell Securities Limited (company number ) and AJ Bell Asset Management Limited (company number ) are authorised and regulated by the Financial Conduct Authority. All companies are registered in England and Wales at 4 Exchange Quay, Salford Quays, Manchester M5 3EE. See website for full details. AJBIC/UG/MBD/AhR/