GUIDE: How to set up Global allocation
Introduction
To ensure portfolio profitability, a plan is developed for asset allocation within the portfolio, determining the percentage allocation for each asset group. This strategy is formalised in Global Allocation.
Key Terminology
Global Allocation | Tag |
|---|---|
The strategy for conducting business for a specific company in the current market conditions. | Criterion with its name, configured for selecting instruments in the global allocation settings. For example, Tag "Equities Energy UK" can be constructed from the following instrument fields: Instrument asset type = Equities + Instrument Country of Risk = UK + Instrument Sector = Energy. |
Sub Tag | Subtag Extension |
An additional criterion designed to specify the parameters for selecting instruments in the global allocation settings. The "Sub Tag" cannot be used independently and depends on the main tag. Filling in the Sub Tag is optional. | An additional criterion that provides even more detailed clarification of the Sub Tag for selecting instruments in the global allocation settings. Subtag Extension cannot exist independently from the main Sub Tag. Filling in the Subtag Extension is optional. |
Target allocation | Сurrent allocation |
Planned allocation percentage of assets within the portfolio | Real allocation percentage of assets within the portfolio |
Where is Global allocation module the system?
Global allocation is available to authorized users in Products → Global allocations
Please contact Support, if you do not see Global allocations or cannot set up Global allocation according to the instruction below.
Global allocation is available to users with permissions to view Global allocation and permission create Global allocation.
How to set up Global Allocation?
All existing Global allocations are available on page “Global allocation”.
Use “+” to create a new Global allocation
Fill in Global allocation settings
Global allocation name (Required field)
Status (Automatically filled in as “Draft”)
Description (Optional)
Tags
Use option “Add Tags” to set up a new tag for the Global allocation
Fill in Tag information:
Tag Name
Tag Target Allocation ( % ). Max value=100
Settings constructor
Instrument Fields
Criteria
Value
Sub Tag
Use option “Add Sub Tag” to specify the parameters for selecting instruments on the basis of the Tag
If the system detects error in target allocation % settings, incorrect result will be highlighted
Add Portfolio(s) to Global allocation.
Search of available Portfolios can be made by Portfolio Name or by Account Name
Information about Portfolio’s Global Allocation is also stored in Portfolio settings
How to check Target and Current Global allocation on Portfolio
Open Client Portfolio → tab “Advanced Analytics”
The system will automatically calculate Current Allocation of assets in the Client Portfolio and compare it with the Target Allocation
