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Models and preferred Portfolios

Description

How preferred portfolios and Models work
Ben Smith
Quiz by Ben Smith, updated more than 1 year ago
Ben Smith
Created by Ben Smith over 7 years ago
17
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Resource summary

Question 1

Question
On the Citichoice Badge what is the percentage allocation for the Platinum Asia fund in the “Absolute Return Growth Model 27 Sep 16” which is a dealer group Model?
Answer
  • 5%
  • 10%
  • 15%
  • 20%

Question 2

Question
Adviser F0437229 wants to set a substation for a dealer group model for his client M03406567 who has told him he wants to replace the Platinum asia share fund with the BT International fund, can Andrew do this at no additional cost to the client?
Answer
  • Andrew can’t do this he does not have substitution functionality and would need to discuss his current level of access with his dealer group.
  • Yes he can substitute the asset through the client set preferences page.
  • He can order the BT international fund through investment orders and exclude the Platinum Asia fund from any rebalances through client preferences
  • He will need to request a manual order to be placed.

Question 3

Question
With preferred portfolio and Model orders, do CRC’s offer manual trades when the trades cannot be placed online?
Answer
  • We will definitely assist an adviser with a manual trade
  • We will take the order in limited circumstances as per sp doc id 155659
  • Yes, if there is no desktop functionaility we will happily take manual orders
  • This is not a service currently offered.

Question 4

Question
A preferred portfolio can have a maximum of how many managed funds?
Answer
  • 15
  • 20
  • 24
  • 25

Question 5

Question
How many Assets does BT recommend to have in a model ?
Answer
  • There is an unlimited amount of investment opportunities through models
  • 35 Investments
  • Less than 50 Investments
  • A maximum of 25 lines of investment

Question 6

Question
An adviser from BT Wrap wants access to the dealer group models page, can this be arranged?
Answer
  • No
  • Yes

Question 7

Question
If I have set up a model for Superwrap only do I have an option of linking a wrap client to the superwrap model?
Answer
  • No
  • yes
  • The client would need to invest via a preferred portfolio
  • The model will need to be amended

Question 8

Question
Can an order be submitted even when an order warning is present?
Answer
  • All order warnings must be addressed before submission
  • Yes
  • No
  • You will probably need to check with a SME

Question 9

Question
An order error specifies that your order has $500.00 too little to fund the rebalance, what needs to be done?
Answer
  • Brokerage was not taken into account on the initial rebalance which is why you have this issue.
  • Delete the line of the rebalance that has that particular error.
  • Reduce the order amounts by $500.00 to allow the order error to be rectified and then your rebalance transaction will be able to go through
  • All of the other answers could help with the solution to this problem.

Question 10

Question
What day of the month does BT target (give or take a day or two for weekends) to process automatic preferred portfolio rebalances that are scheduled for quarterly?
Answer
  • 2nd of the last month of the quarter
  • 8th of the last month of the quarter
  • 16th of the last month of the quarter
  • 21st of the last month of the quarter

Question 11

Question
What is the minimum percentage allocation for the working cash account in a preferred portfolio?
Answer
  • 1%
  • 2%
  • There is no minimum
  • $2500

Question 12

Question
I have a client in a model which has BHP as one of the Core holdings, my client is currently advising BHP in regards to its corporate strategy and is not allowed to purchase any further securities in BHP, this is only going to be for a six to eight month period, is there anything I can do in regards to not purchasing any more BHP when I am rebalancing, also ensuring that the current holdings are kept?
Answer
  • You can establish a new model and link the client to that.
  • You can make sure the client is invested in a range of managed funds in a preferred portfolio with a similar investment strategy to BHP.
  • You can specify conditions for minimum transaction and holding values. The rebalance process will only recommend rebalance transactions when these conditions are met.
  • You can lock BHP to the current holding amount so no further units will be purchased, you can simply turn this off in the future when the client is able to purchase the asset again.

Question 13

Question
Andrew Grinsell calls and says that his client wants to add capital protection to a fund he holds LAZ0014AU, clients name is M03406567 - Paul Brennan will the adviser be able to do this?
Answer
  • In this situation If the adviser wishes to apply protection to this fund, the model will need to be amended or unlinked from the client.
  • Capital protection can be linked to this clients holding.
  • Wrap does not require a particular compliance structure and will support both discretionary and non-discretionary arrangements.
  • It is important for you to manually monitor the status of your order on the Order Status page and re-submit the order when cash becomes available to allow the capital protection to function.

Question 14

Question
What day of the month does BT organise the automatic rebalance of a model portfolios?
Answer
  • 8th
  • 16th
  • 21st
  • There is no rebalance that BT organises.

Question 15

Question
I have two models linked to my account what is the model facility fee I will pay?
Answer
  • 0.1% of managed fund trades and $39 for equities
  • $19.95 per Equity and zero for managed funds
  • $242.50
  • $485

Question 16

Question
Are approved product lists legislated?
Answer
  • No
  • Yes

Question 17

Question
An adviser that has limited access to models can Link clients to models and set client minimums for holdings. True or False?
Answer
  • True
  • False

Question 18

Question
A saved rebalance for a preferred portfolio may need to be deleted prior to rebalancing a clients preferred portfolio. True or False?
Answer
  • True
  • False

Question 19

Question
For BT Portfolio Wrap+ an adviser calls wanting to set client preferences (including stock substitution) can any advisers from this badge do this? What form needs to be sent in if any to get this done?
Answer
  • No advisers on this badge can do this, any change to their access needs to be discussed with the dealer group.
  • Wrap dealer group access form, available from the dealer group website, and no advisers can do this on this badge
  • Advisers can do this through the set preferences page, all advisers should already have access nothing needs to be sent in.
  • Models always allow this, an adviser registration form so that you are registered for BT Portfolio Wrap + is all that would be required for access to this.

Question 20

Question
All orders that contain order errors or rebalance errors can be submitted. True or False?
Answer
  • True
  • False
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