Refer to the Modeling section on how to create and attach a model to a portfolio.

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1 Rebalancing Rebalancing portfolios can be done individually, by a group of portfolios. Rebalancing can only be carried out on a portfolio that has been assigned a hierarchical or holding based model. Depending on the number of portfolio which are selected an Online or Batch process can be initiated. The maximum number of portfolio to rebalance online is 50. The rebalancing process goes in any case over several steps: Selection of portfolio(s) Execute the rebalancing exercise Select which rebalancing lines are order candidates Update the order with relevant trading information Validate the orders Route orders Refer to the Modeling section on how to create and attach a model to a portfolio. Rebalancing Individual Portfolio 1) Rebalancing an individual portfolio is done by clicking on the rebalancing menu on the left hand side. 2) Saxo Portfolio Manager will suggest the buys and sells in accordance with the model portfolio as in the 1

2 above example. You can generate individual orders for the portfolio by clicking on the menu as shown below. By default all orders are selected, you can deselect any and continue with placing the orders by clicking on the button. 3) Next select all and go on to validate and route the orders in batch, which will send the orders over FIX to Saxo Bank s execution venues. Validate checks the orders generated against the target model again and the impact on the clients portfolio and Route, routes the order to the market. Remember for third party traded products, bonds and options, there is no STP, an order ticket will be created in pdf or csv, you choose and send it to Saxo Bank or the relevant party. 2

3 5) Once you validate the orders, a message will confirm the orders were processed successfully, like in the example below, you can then select the orders and route, a similar message appears when routed and the order status will change. 6) You can look at the order queue as below, drill down by right mouse clicking and see what the warnings are or change the order. Below is an example of an individual order in more detail. 3

4 All orders sent to the market will follow the same risk, margin and trading rules as if the order was generated from client station. Fills will get reported back to Saxo Portfolio Manager but the underlying portfolio will not update until the end of day. Client station will show you the real-time updates to the clients accounts. Rebalancing Consolidated Portfolios It is not possible to rebalance consolidated portfolios; no orders will be generated if you try to rebalance a consolidated portfolio. Rebalancing Multiple Portfolios Saxo Portfolio Manager has the ability to bulk rebalance portfolios, whereby you select a number of portfolios and manage them together. Selection a. Clear any portfolios from an existing list i. Before rebalancing portfolios it s important to clear the work list. Otherwise previously used portfolios will be part of the rebalancing exercise. b. Add portfolios to the list via i. Via Asset // Reverse Portfolio Add to Worklist option. ii. Via Tools // Extended Reverse Portfolio Add to Worklist option. iii. Via Model // Reverse Portfolio Add to Worklist option. iv. One by one via the search option on top of the list c. Save list i. The selection can be saved to a Private or Public profile. However it s a static list. New portfolios have to be added manually. 4

5 Example here shows a reverse portfolio using a model. 2) Select the portfolios you want to rebalance and add portfolios to a Worklist like the below, the screen will then automatically take you to the next step 3) Once you select your list, you will notice the information available, changes, i.e. you will no longer be able to see portfolio overview as you are now working with several portfolios. You can see all portfolios participating in the chosen model. Click on new work list. button to freeze the list or save the 5

6 Continue to the Rebalancing menu Select the Modeling menu and then Rebalancing. Depending on the amount of the portfolio this step behaves different: Under 50 portfolios an online process is launched with the rebalancing results on the screen. Over 50 portfolios a Batch process is launched with the rebalancing results handled through an offline process. Settings The rebalancing process starts with a settings popup : Determine : - Rebalancing Mode : Split rebalancing to rebalance portfolio with their own model. General rebalancing to rebalance all portfolios with one selected model. Split is recommended. - Weight type : rebalancing on initial or market weights. - Compare to : model 1 or 2 - Categories ; rebalance only on certain assets - Cash Withdrawal : reduce / increase a portfolio via a cash withdrawal or deposit - Group by; BlockOrder to generate block trades. Click on the button to continue. Online 6

7 Within the results three options are available. 1) Right click on a product and select block order 2) Click on the exchange icon to generate Individual Orders for all selected lines 3) Rebalance and generate block orders ( in batch ) This message confirms the batch process has kicked in and the following message tells you the process has been completed, it should only take a few seconds. 7

8 If you click on the hyperlink it ll take you to view the orders that have been processed: Below shows the Bulk Rebalancing monitor. Clicking on the will take you to view all the orders 8

9 Click on execute or save to action for a later time. This does not execute to the market but merely creates a list of orders for you to validate. Go to the follow up screen and all the orders are now ready to edit before releasing to the market. Right mouse click on the order you want to work on. 4) Alternatively you could just Right mouse click on the order you would like to place, this option allows you to manage each block order individually such as : a. Order Type : Market / Limit b. Limit price c. Order quantity d. Block account e. Algo 9

10 5) Either way here is an example of the order ticket, edit the ticket accordingly, add your block account and save and continue. 6) You can edit the allocations per client if you need to change the order size or delete a client s participation for example. Note: Without the dealer/block account the order will be rejected by an invalid account reject message, this information is mandatory so that the trading systems can validate you are authorised to trade on behalf of the client. 10

11 Click to delete Click to edit 7) Validate and route the order If you do get an allocation warning, make the relevant adjustments and then continue with the order, soft warning you are able to override, hard warnings you will need to change the order before you continue. 11

12 Save and continue, once you are happy with the allocations. Validate and Route the order, it s here when the order will go to the market. Order Generation Whilst the most popular way originating an order is via the rebalancing exercise there will be times when you need to create an order outside this exercise, either to bring a new instrument to all yours clients portfolios or an ad-hoc trade on behalf of a few clients. From Scratch One way is to use the Order module and create a single or block order manually 12

13 From Products Reverse Portfolio Select the product and then you will get a list of portfolios that have a holding in it, like in the example; you can then start the order origination process from here on. 13

14 From Holdings You can buy, sell, user reverse portfolio or run a query to find a set of portfolios. 14