Investment objectives
FA Platform lets you manage investment objectives and model your portfolios with the following tools:
Model portfolio, investment plan, strategy
You set investment objectives on different levels - defining asset allocations and their shares, or specifying particular securities to include in the portfolio. You can use the same investment objectives across portfolios or tailor them to a certain client.
Model portfolio is a sample basket of investments used to maintain and rebalance client portfolios. For details, see Model portfolio.
Investment plan is a client-specific portfolio model that includes securities and their shares. An investment plan can be composite, created as a combination of model portfolios (for example 20% of stock portfolio and 80% of bond portfolio). Investment plan is used for rebalancing. For details, see Investment plan.
Strategy is a model that sets the desired allocation for your portfolio – it includes asset types and their shares. A strategy can be created as a combination of model portfolios. For example, 60% share of a model portfolio that contains equities and 40% share of a model portfolio that contains bonds. Strategy is used for rebalancing and portfolio analysis: it lets you see if your portfolio allocation follows the plan and track the portfolio drift. For details, see Strategy.
Limit analysis
Limits analysis allows you to check if a portfolio follows the model portfolio, investment plan or strategy. Besides these models, limits can be based on Analytics+ values, such as market value, and on the profile values. For details, see Limit analysis.
Rebalacing
To rebalance a portfolio against a model portfolio, investment plan, or a strategy, see Rebalance.