Rebalancing

1. Rebalance multiple assets to x% of Portfolio Value

Sets the weight of multiple assets to a certain percentage, relative to total portfolio value. In the example below, all Apple Inc. positions for the selected client portfolios will be adjusted to 1.5% of the total portfolio values. The asset will be bought for all portfolios with a position of less than 1.5% and will be sold for all portfolios that have a position higher than 1.5%. If a client portfolio has no position in Apple Inc., the total position quantity will be bought. Cash positions are taken into account when calculating the "Percentage of Portfolio value".

2. Increase / decrease a position by x% of itself

Increases or reduces the weight of an asset by a factor. In the example below, the asset's weight of Apple Inc. in the selected client portfolios will be increased by 50%

3. Switch positions

Sells an asset, multiple assets or a percentage of an asset or assets and reinvests the proceeds in another asset or multiple assets. It is possible to reinvest the proceeds only partially. In the example below, 50% of the selected ABB Ltd positions are sold and reinvested by 50% in Novartis and 50% in Apple.

4. Sell off position (long to zero)

Sets the quantity of a position to zero and closes the position. This is only valid for long positions that can be traded via Stock Exchange orders. 

5. Sell all securities  

Sells all positions which can be traded via Stock Exchange orders. 

Step 1

Rebalancing can be applied to a single portfolio, a set of portfolios or all portfolios. The portfolios must be selected prior to the rebalancing. Via the portfolio book, you can select a set of portfolios by pressing CTRL and clicking on the relevant portfolios. The selected portfolios appear highlighted in grey. 

Step 2

With a right mouse click on one of the selected portfolios, the rebalancing options appear. After selecting a rebalancing function, e.g. "Set position to x% of Portfolio", the "Input Parameters" screen will be displayed. 

Step 3

In this example, the goal is that all Apple Inc. positions for the selected client portfolios will be adjusted to 1.0% of the total portfolio value. Select the desired asset via the "Asset search" or direct input. Afterwards, define the "Percentage of portfolio" value. 

The asset will be bought for all portfolios with a position of less than 1.0% and will be sold for all portfolios that have a position higher than 1.0%. If a client portfolio has no position in Apple Inc., the total position quantity will be bought. Please click on "Rebalance" for the next step. 

Step 4

The next step shows the "Summary" tab in the Rebalancing process with the order details, the number of affected portfolios and the number of trades which were calculated in the rebalancing process. 

Step 5

In the "Trade List" tab the calculated orders can be reviewed and edited. 

Step 6

In the "Portfolio" tab, all positions per client are displayed and can be edited. Positions not subject to the chosen rebalancing method are also editable in this section. The corresponding trades are then calculated immediately. 

Step 7

As soon as the calculated orders have been finally reviewed and/or adjusted, the two following workflows can be selected to initiate the order process:  

Option 1: Generate trading orders 

Single stock exchange orders will be prepared, which will be sent for individual execution in a further process step. 

Option 2: Generate pooling orders 

A pooled stock exchange order will be prepared, which can then be submitted for trading in a further process step. Further orders for the same security and with the same order parameters can be combined with the pooling order. 

In this example, the aim is to pool orders and, therefore, the function "Generate pooling orders" is chosen. The stock exchange orders are now being prepared for further validation.  

Step 8

For an overview of the whole rebalancing process and all further steps in the order generation, there is a dedicated Rebalancing dashboard available. This dashboard can be found via "Workbook“ and then "Rebalancing" in the top navigation bar.  

The first order book in the rebalancing dashboard shows a hierarchical overview of all generated orders and the involved portfolios. The orders are per default collapsed. 

If an order of an individual portfolio requires a review resulting from the validation process, the order can be reviewed through the "Edit" action in the order book. Then please click on the "Proceed to Ready for Pooling" button on the order. The corresponding validation will be displayed in a pop-up message.

Step 9

There is a separate pooling order book available for the generated orders. The orders are displayed so that they can be pooled immediately.  

Step 10

The orders can be selected by pressing CTRL and selecting the orders with a mouse click. Subsequently, via right mouse click on the order number, the orders can be sent to trading by selecting "Pool and place". Please note, that only orders on the same hierarchy level can be pooled at the same time.

Orders that cannot be pooled, can be placed via the navigation tab "Ready for trading". Please select "Send to Ready for Trading" first.

 

Step 11

Finally, all orders appear in the regular "Securities" order book. 

1. Stock Exchange Options 

2. Minimum Transaction Options

3. Rounding Options

3.1. Money Driven 

3.2. Quantity Driven

4. Portfolio Balance Options

Per default only finally booked transactions (Verification Date today) are taken into account for the Rebalancing calculations. With the option "Verification Date Open" all open transactions are also included in the Rebalancing calculation. Open transaction does include limited and unlimited orders with status "Placed" and exclude orders in the status "New order".