Instructing a bulk amendment
Risk Warning
This content is for users of the Wrap Investment Hub and must not be relied on by anyone else. The value of investments can go down as well as up and may be worth less than originally invested.
Bulk Model Composition amendment has two uses
- To replace a fund within your model portfolio’s target allocation with another fund. You can choose to replace a fund in one, a number of or all of your model portfolios. The replacement fund will adopt the same % of target allocation as the fund being replaced. If a replacement fund is selected and a rebalance takes place, units in the original fund will be sold and units will be bought in the replacement fund.
- You can nominate a target fund within your model portfolio to be a “proxy investment” and select a “replacing investment” for the proxy investment.
Example: This feature could be used if a fund’s tradability status changed or a cleaner share class became available. If a proxy investment is nominated and a rebalance takes place (or an adviser invests or withdraws money from a model portfolio), the Hub will review the combined total % allocation of both the proxy investment and the replacing investment. If the combined total % allocation is overweight against the model portfolio target allocation, units within the proxy investment will be sold first. If the combined total % allocation is underweight, units in the replacing investment will be bought first.
Please note: Bulk Model Composition amendment is available to Transact Users only and if selected during the configuration stage when access to the Hub is initially set up. If you did not select this feature during set up and would like to use it, please send an email request to: hub_servicing@abrdn.com
Accessing the Bulk Model Composition amendment tool
To access click on the ‘Bulk Model Composition Amendment’ tab from the model portfolio menu to reveal a 3 step wizard.
Step 1 – Amendment Details
You will first need to find the investment already held within a model portfolio that you want to replace or nominate as a proxy investment. Do this by clicking on ‘find’ next to the ‘Investment being replaced’ field. A new window will open allowing you to search for an investment.
Then select a ‘Replacing investment’ by clicking on “find” next to the ‘Replacing investment’ field. A new window will open and you can search for an investment.
Please note: If you do not want to nominate the investment being replaced as a proxy investment, please untick the ‘Make replaced investment a proxy’ box.
Step 2 – Model Selection
Once amendment details are completed you can select which model portfolios the amendments should apply to. You can do this by ticking the ‘include’ field for each appropriate model portfolio or click ‘select all’ if you want to apply amendments to all.
Step 3 – Review and Submit
Once the Amendment Details and Model Selection steps are completed you can review and submit your changes. The Investment Management Hub will automatically update the asset allocation of the selected model portfolio(s).
If you have chosen to’ switch on’ authorisations, your Bulk Model Composition Amendment instruction will need to be authorised by a second Transact User.
Proxy investments
If proxy investment is initiated you can view details on the ‘Allocations tab’ under the ‘Model Portfolio Detail’ menu. You can also cancel the proxy investment from this page.