In order to use the Portfolio Review System built into CFS you will first need to create "models" for each portfolio that you wish to manage through the system.
A Brief overview of how Portfolio Models work in CFS
A Portfolio Model is a collection of funds, alongside associated percentages which is used to specify the holdings contained within a specific provider's portfolio. Model's are defined by three properties - Provider, Product & Risk Level. Using this information and the "Risk" dropdown in a client's policy holding within the Durell system (see below: "Matching CFS Models to Clients' Policies") it's possible for CFS to work out which model a client is assigned to. This enables you to propose portfolio changes on a model level, as opposed to on an individual client basis and vastly speeds up the portfolio review process.
Creating a brand new model
Firstly run CFS as described in 3. Managing CFS Every Day - then click the "Portfolio Models" tab.
1) Click the "Add new Provider" button, you should see a screen like below
a) Use the arrow keys to scroll through the list of providers until you find the provider you want to select.
b) Enter a display name for this provider (i.e. the name which will be presented to the client)
c) Different providers have different scales for their risk levels, some use a maximum of 5, some 7 or some 10, so enter this providers maximum risk level in the "Max risk level" box. If you wish to explain to the client what this provider's risk level scale means, you can use the "Risk level explanation" box to provide help to the client.
d) Once you have completed all fields click "OK" to add this provider.
2) You should now see the provider listed below the Add new Provider button, with a menu icon next to it (n.b. this icon indicates a right-click menu is available)
3) Right click the new provider and select the "Add new product for ..." menu option. You should now see a simple screen with a product selection box.
4) Use the arrow keys to search through the available products until your desired product is selected, then click "OK".
5) Double-click the name of your new provider to see the new product listed underneath.
6) Right-click the new product and select the "Add new risk model for..." menu option. Once again you will see a simple screen.
7) Enter a name for this model (for example, "Conservative" or; "Moderate") and then select the risk level which this model is aimed at. (N.B The maxium available risk level is the number you entered for the "Max risk level" option in the add provider screen), click "OK" to finish.
8) Double-click the name of your product to see the newly created model, then double click the model to view the Model Overview panel.
Setting up INITIAL funds within a portfolio model
A model has 2 phases: Unpublished & Published. When a model is "unpublished" you can add, edit & remove funds whenever you wish without the need to create a portfolio review. During an "unpublished" phase no clients will be shown the model and it will not be available to review. Once a model is published you cannot edit any of the current holdings directly, instead you will need to build a "portfolio review" which will propose your changes to the client before being made live.
1) Select the model you wish to edit by double-clicking it in the left hand menu.
2) For each fund you wish to add to the model, follow the following steps:
1) Click the "Add Fund" button. (N.B. when you first select this button the program will "cache" all fin express funds for future use, meaning this process may be slow upon first use, please be patient)
2) Select the fund type from the "Type" drop-down, i.e. Unit Trusts, Equities, etc.
3) You can now search for a fund using it's Code, Name, or Sector. To do so simply click the radio option next to the desired label and use the arrow keys to scroll through the available options.
4) Once the desired fund has been selected enter the split percentage for this fund in the "Percentage" text box (do not enter a "%" symbol, just enter the figure) and click "OK" to add the fund.
Publishing a model
Once you are happy with the funds contained within a portfolio model, you can publish it to make it visible for clients on you CFS system. Simply click the "Unpublished" button. Once you have confirmed you wish to publish the model you may receive a warning message regarding the total percentage of funds within a model. If this figure is not CLOSE TO 100% (i.e. 99.99%) it is strongly advised that you edit the holdings of the model before publishing to ensure that performance statistics, etc, are not skewed in the portfolio analysis.
To edit a holding simply right click it's name and select the "Edit Holding" menu option.
Adding a new portfolio review
Once you have published a model, if you wish to edit the fund holdings you will need to create a "review". A review is a set of instructions containing the changes you wish to make to a model, in the form of "events". An event can be a fund closure, fund acquisition, fund switch or a simple fund percentage change.
1) Select the model which you wish to add a review to, and then click the "Add Review" button, you will see the screen below:
2) The first setting you need to complete is the review period, the "start date" indicates when this review will be visible to the client to review the proposed changes and post their responses, the latter "to" date indiciates when the proposed changes will be effective and hence the review locked down. Any clients who have not responded to your review within this time period will automatically be "excluded" from the model and henceforth blocked from completing future reviews. So it's important to enter a period which will be long enough for you clients to complete the review.
3) The historic risk score is used to present the client with the previous volatility of the proposed portfolio to allow them to make an informed choice regarding possible future volatility, this figure should be available from the respective providers website, the "from" date indicates the start period for the historic risk score.
4) Add events to the review, for each event:-
Click the "Add Event" button, and select the type of event from the following:
"Close Funds" - select this option if you wish to close funds without opening a different one in it's place, once the option is selected simply click "Add Fund to Close" for each fund which you wish to close.
"Add Funds" - select this option to add a new fund into the model without closing one first (this event will probably need to be combined with a split percentage change), similiar to close funds, once this option is selected simply click "Add Fund" for each fund which you want to add to the model, ensuring you enter a percentage for this new fund.
"Switch Funds" - use this option if you wish to close down one fund and replace it with another. Simply click "Select" to chose the fund to close and the fund to open in it's place. N.B when chosing the "Fund to open" you can specify a new split percentage if you wish.
"Amend Fund Split" - use this option to rebalance split percentages within the model, simply click "Add Fund" for each holding you wish to amend.
5) Once you have added all the required events for a review, click the "OK" button to save it and return to the fund overview panel.
Please note: if the date which you selected for the "from" date for the review is prior to todays date, the review will be active as soon as you close this window. Once a review is active you can no longer add, edit or remove events from it, so if you are creating a review of such nature ensure you are happy with ALL events before clicking OK.
Matching CFS Models to Clients' Policies