Create a Variable Model Portfolio

The dialog box used to create a Variable Model portfolio can be accessed via the Investment Planning or Workspace tabs. From the left-hand menu, select Model Portfolios and then the Variable Models page. Click New from the toolbar above the grid to open the dialog box.

1. Enter a descriptive name for the model portfolio in the Name box.

2. Use the drop-down menu to select the Currency to be associated with the portfolio.

3. The Benchmark 1 field defaults to Use User Default Setting. Click the View button to identify the benchmark assigned. To change the benchmark, use the drop-down menu and click Select Benchmark. Narrow your search by using the Within and Find By fields. Select the new benchmark and click OK.

4. Click the magnifying glass next to the Risk free proxy field to select a security. Click here for more information.

   Risk-free Rate

   The risk-free rate represents the interest on an investor's money that he or she would expect from an absolutely risk-free investment over a specified period of time.

   In practice, however, the risk-free rate does not technically exist; even the safest investments carry a very small amount of risk. Thus, investors commonly use the interest rate on a three-month U.S. Treasury bill as a proxy for the risk-free rate because short-term government-issued securities have virtually zero risk of default.

5. Enter a Portfolio ID to identify the portfolio.

6. Select an option for the Performance source from the drop-down menu.

   1. When the Calculated based on underlying positions option is selected, the Management Fee and Fee applied fields are available. The Performance series field is not available.

   2. When the Imported account-level performance option is selected, the Performance series field is available. The Management Fee and Fee applied fields are not available.

7. Enter a rate in the Management fee % box.

8. In the Fee applied field, select the frequency from the drop-down menu.

9. The Performance series option allows you to select the imported or manually entered return series.

10. Select the Rebalancing frequency from the drop-down menu.

11. In the Rebalancing based on field, select the rebalancing period from the drop-down menu.

12. Select the Performance calculation start date from the drop down menu.

13. The Notes field provides a place to store information regarding the portfolio.

14. Click Save to load the Holdings Entry grid.

15.  Set the Positions as of date. This is normally set to a month-end date.

16. Select the holdings to be associated with the model. Note: There are multiple tabs where holdings can be entered.

17. Set the weighting percentages assigned to each holding in the Percent (%) column, or click the Equal Weight button in the lower left-hand corner of the screen to evenly distribute the percentages across all holdings.

18. Click Finish to save the model and return to the Variable Models grid.