SMART® stands for Sophisticated Modelling and Rebalancing Technology.
SMART® is for use by advisers to model and rebalance client investment portfolios efficiently.
The use of SMART® enables advisers to manage as few or as many client portfolios as they choose on an ongoing basis, through regular modelling and rebalancing and efficient implementation of portfolio changes.
This article is for the use of Adviser Representative's (AR) only. If you are a client and wish to learn more about this feature, please contact your Adviser Representative or Netwealth at contact@netwealth.com.au.
What is SMART?
SMART® stands for Sophisticated Modelling and Rebalancing Technology.
SMART® is for use by advisers to model and rebalance client investment portfolios efficiently.
The use of SMART® enables advisers to manage as few or as many client portfolios as they choose on an ongoing basis, through regular modelling and rebalancing and efficient implementation of portfolio changes.
SMART® supports multiple models and individual client customisation, allowing comprehensive rules and exclusions specific to individual client investment portfolios to be specified, including tax requirements, investment preferences and exclusions, and trade sizes and values.
SMART® provides the adviser with greater control over their clients' investment portfolios, including the ability to react quickly and efficiently to changes in products and investment markets, as well as to changes in clients’ personal circumstances.
How do I access SMART:
To access SMART, you will need to be granted permissions by Netwealth. Once this permission is granted you will be able to access SMART through the adviser portal via the Bulk Transactions menu.
How do I use the five SMART pages?
Models page:
There are multiple different functions of the models page, including:
- Create a model (by clicking the 'Add' button)
- Edit an existing model (by clicking the model name)
- Delete models (click the red 'X' icon to the corresponding model)
- View a history of who has edited a model over time (by clicking the 'Modified Date' link)
- View Netwealth admin models set up (these cannot be edited)
- View the list of clients attached to a model (by clicking the number in the 'Clients' column)
There is also a 'select an action' menu which gives you the following options:
- Calculate (recalculates the donut charts based on the changes you have made)
- Import a model (using a provided template)
- Copy a model (copies the model you have already selected on the page)
- Export a model (to Excel)
- Attach model to clients (you can search for clients by product, portfolio balance & available cash and tick the clients you wish to attach to the model)
Client Profiles page:
Settings for each client can be saved in a Client Profile which are referenced and used when rebalancing a client to the model(s) they are attached to. The features available on this page include:
- Add/delete and assign/amend the allocation percentages for models
- Amend the investment preferences (e.g. reserve a $ amount of cash outside of the rebalance, set minimum trade values, set minimum holding values, direct surplus cash, decide how to treat interest bearing deposits)
- As a standard all clients use the default investment preferences set by the adviser unless individually changed on this page.
- Nominate assets not to be purchased in the rebalance (even though they may be included in a model) (done via asset search menu - these assets can either be not bought or substituted for another asset)
- Nominate assets to be excluded or not sold in the rebalance
- Apply one client's profile to many clients under the same adviser
- Set up a default client profile for all new clients added under the adviser
Client Grouping:
Client Groups are set up for each adviser. This allows advisers to group similar clients in one group. This group can then be selected in the rebalance pages.
- Added (selecting the 'Add Group' button)
- Deleted (selecting the red 'X' button)
- Edited (selecting the 'Client Group' button)
Rebalance pages:
Client Search page:
The specifications of your search can include:
- Individual clients - by name/client no.
- Client Group
- Adviser
- Asset help by the client
- Model clients are attached to
Advanced search filters include:
- Product
- Portfolio balance
- Available cash
The list of clients are displayed in the Search Results section. You can select (by ticking and unticking) the clients you want to include in the Rebalance.
Click 'Rebalance' to navigate to;
Rebalance Criteria page:
This page lists all the assets all clients selected on the previous page hold, plus all assets in the models the selected clients are attached to. Assets can be explicitly excluded from the rebalance if they are unticked on this page.
Click 'Next step' to navigate to;
Order Details page:
This page lists all the clients to be included in the rebalance. A red 'X' at the beginning of the line means the rebalance has not generated trades (and they are therefore excluded from the rebalance). A red exclamation mark at the beginning of the line means some assets have been excluded for one of the following reasons:
- MH - minimum holding amount
- MT - minimum trade amount
- PE - pending trades
- MIN - minimum cash amount applied
- NC - Negative cash
- SR - Super restriction
- ML - Margin lending restriction
- EX - explicitly excluded
- LK - asset is locked due to both a Don't Buy and a Don't Sell being assigned to the same asset
- DB - Don't Buy
- DS - Don't Sell
- SB - Substituted
A blue tick at the beginning of the line means the client will be rebalanced to the model(s) they are attached to with no exclusions. To see a summary of the trade orders to be generated by the rebalance click on a client name.
The details of the trades to be generated can be exported from this window. Back on the Order Details page is possible to select to execute share trades through an external broker by selecting 'Yes' to the applicable question (if international shares are to be traded the question will default to 'Yes' and cannot be amended). Clients to be included in the rebalance can selected and deselected from the Order Details page.
To continue with the rebalance click 'Next step';
Summary page:
Trade orders to be submitted externally (shares only) and by Netwealth are listed in sections (see above).
To go ahead and submit the rebalance click 'Confirm';
Confirmation page:
If share trades are to be submitted to an external broker a spreadsheet will be displayed on the Confirmation page for the adviser to action.
Completed Rebalances page:
Clicking on the Transaction name link will show the child transactions (clients) included in the rebalance transaction.
Clicking on the child transaction reference will show the Order Details (trade summary) window for the client selected.