Investing in a model is the process of creating an investment or adding to an existing investment in a model on behalf of one or more client accounts. Cash is transferred to the model from Independent and then used to buy positions in the allocation percentages specified by the model. Note: it is also possible to transfer positions to the model from Independent, thus reducing the need to buy new securities - see step 3 below.
To invest into a model, follow the steps below:
- Select accounts. The account selector is used to select the client accounts that will be investing.
- Choose investment amounts. The table shows any existing investment. You need to fill in the investment amount for each account and then review the expected total at the end. If you wish to invest all the available cash then click the 'Invest All Independent Cash' button and it will fill in the investment amount for you.
- Decide if any Advanced Order Settings are needed. They are:
- Use non-base balances when available: Check this to use the cash balance of a non-base currency in the Independent when an investment requires that a non-base currency be purchased to acquire an asset for the model. For example, if a client has a GBP balance in their account and the model includes an asset that would be purchased using GBP, the client's existing GBP balance will be used to purchase the asset.
- Transfer positions from Independent when available: Check this to use any existing positions in the Independent in the model where applicable. For example, if a client already holds Microsoft stock, and the model is slated to have a position in Microsoft, the client's existing position will transfer to the model to avoid creating unnecessary transactions and their associated fees, or inadvertently overweighting the client account.
- Avoid negative offsetting cash in Independent: Selecting that option ensures that the investment will not result in negative cash balance in Independent. It may be the case that composition of Model after investment may not match the desired target %.
- Once ready, click 'Draft Orders' to:
- review the transfers
- submit the draft orders.