Rebalance Portfolio

The Rebalance window allows advisors to rebalance the overall portfolio for all accounts, a group of accounts, or an individual account.

Advisors can access the Rebalance tool through the Menu by expanding Trade and selecting Rebalance. To the upper left of the page, the Advisor uses the Account Selector to choose the account, or group of accounts, they wish to rebalance. All positions held within the selected accounts will populate the screen.

Set to Actual %

The Actual % column will display the percentage each position makes up of the entire portfolio. The advisor can pre-populate the Target % column to use the current Actual % values by clicking the “Set to Actual %” button along the upper right of the window.

Rescale 100%

The advisor may notice the Total % adds up to a value higher or lower than 100%. Selecting “Rescale 100%” will proportionately rescale the target percentages so the total adds up to 100% of the portfolio.

Clear

The Target % values can be cleared out by clicking on the “Clear” button.

Target %

The advisor can also manually adjust the target percentages by entering values in the target % column in the row they wish to adjust. Positive percentages will result in long positions and negative percentages will result in short positions.

Lock

When rebalancing, advisors can choose to use the lock icon to lock any position percentage they do not want to adjust. In this example, the advisor sets all target percentages to actual percentage, then increases the percentage of cash held in the account, resulting in a total percentage above 100%. They would like to rescale to 100% but do not want to adjust the new cash percentage so the advisor locks the cash percentage prior to selecting Rescale 100%. As a result, all percentages rescale proportionately, except for cash.

Preview Order Quantities

Once the advisor is satisfied with the Target % weights, they select Preview Order Quantities at the bottom of the page. The Order Quantities section will populate on the screen, displaying an order preview of the instrument, allocation, action, quantity, price, change, and value.  Select Draft Orders to save the orders.

Draft Orders

The Advisor will automatically be brought to the Draft Orders tab of the Orders & Trades page. The Advisor can transmit the orders by selecting Review & Submit, delete an order using the trash icon, or clear drafts. The orders can also be accessed through the Orders & Trades tab to submit at a later time.

In a later lesson, we will review rebalance for model portfolios.