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Models and Allocations: Allocations

What are Allocations?

Allocations are account templates, made up of Model Folios that assign Target Weights to each Model Folio within a client’s account. The Allocation Manager chooses which Model Folios to include in the Allocation based on the Models available to them. For example, an Allocation Manager could create a Long-term Growth Allocation that holds three Models; a Large-Cap, Small-Cap and International Model Folios, assigning each a certain percentage of the total Allocation. After the Allocation is created, authorized advisors of the same firm can subscribe clients to the Allocation and invest any amount for a client. By subscribing, the client account is invested in the Model Folios at the pre-set allocations, no matter the dollar amount invested.

How do Allocations work?

After the Allocation is published by the Allocation Manager, clients can be subscribed to it. The client will receive the same pre-set allocation (percentages) of their investment in each of the Model Folios in the Allocation. Since individual models and their respective allocations are chosen by the Allocation Manager, you are unable to add additional Folios into the subscribed client’s account.

Who can create Allocations?

Advisors designated by their firm as Account Template Managers can create allocations. If you log in and do not see an Allocations tab, please contact your firm’s point of contact for the Folio Institutional relationship to request this access.

Who can use Allocations?

Advisors must be authorized by their firm to use the firm Allocations.

How do I create an Allocation?

If you are a designated Account Template Manager:

  1. Go to the Folio Allocations page (Allocations tab in the top navigation)
  2. Select Create an Allocation
  3. Name the Allocation
  4. Decide whether to Publish or Unpublish the Allocation (only published Allocations can have subscribers)
    1. You can test your Allocation strategy and hypothetical performance before advisors can subscribe to it, by keeping it unpublished for a period of time
  5. Complete the requested information (optional) to give Advisors a more detailed description about the Allocation, then select Continue
  6. Select the Models you want to include in the Allocation from the available list, then select Continue
  7. Set the Target Allocation to each of the Models you included, then select Continue
  8. Review the information and Save the Allocation to complete the creation of this Allocation

If you chose to keep the Allocation Unpublished, you will have the opportunity to Publish it at a future date through the Allocation’s Settings page.

How do I modify an Allocation?

To modify an Allocation you have created:

  1. Go to the Folio Allocations page
  2. Next to the Allocation, select Modify
  3. Enter new Target Allocation percentages or Add/Delete Model Folios, then Save the changes
  4. Review the modified Allocation and select Return to Account Templates

If I am the Allocation Manager, how do I sync subscribed accounts after I modify an Allocation?

To sync subscribed accounts to the modified Allocation:

  1. Go to the Folio Allocations page
  2. Under Actions select Report & Sync
  3. Check the box next to the clients that you want to sync to the modified Allocation, then select Sync
  4. Review the information provided on the following page, and select Sync to complete the order creation in each subscribed account

How do I subscribe clients to an Allocation?

To subscribe a client to an Allocation:

  1. Go to the client’s accounts page
  2. In the Actions menu located next to the account, select Subscribe to Allocation
  3. Select an Allocation from the available list, then select Continue
  4. Fill out the sync settings that will apply in the future when the Allocation is modified, or a Model in the Allocation is modified, then select Subscribe
    1. Enter the amount you wish to buy synchronize, sell synchronize or synchronize only, then select Preview Order
    2. Review and select Place the Order to complete the subscription

After you place the order, our system will automatically generate orders that will sync the account to the Allocation, in the next window.

If I am the client’s Advisor, how do I sync subscribed accounts to an Allocation that has been modified?

We will send you a Model Sync email alert when a Model Manager or Allocation Account Manager has updated a Model in an Allocation your client is subscribed to.

To sync a subscribed client to an Allocation once it has been modified:

  1. Go to the client’s accounts page
  2. In the Actions menu located next to the account, select Place an Account Trade
  3. Select one of the following methods to sync the account:
    1. Buy Synchronize: This option allows you to specify how much money to add to the account. The system will generate orders to buy the specified dollar amount in a way that brings the account as close as possible to the Target Weights in the Allocation.
    2. Sell Synchronize: This option allows you to specify an amount to sell. The system will generate orders to sell from each Folio in the allocation in the allocation to generate the dollar amount specified in a way that brings the account as close as possible to the Target Weights in the Allocation.
    3. Synchronize Only: This will generate buy and sell orders as necessary to bring the account in line with the Allocation. You do not specify a dollar amount.
  4. Select Preview Order
  5. Review and select Place Order to complete the sync order

How do I unsubscribe a client’s account to an Allocation?

To unsubscribe a client’s account to an Allocation:

  1. Go to the client’s accounts page
  2. Under More Info select View Client Settings
  3. Scroll down to the Information about Client Accounts
  4. Under the Account Name select Unsubscribe Allocation
  5. Select Unsubscribe to complete unsubscribing your client from the Allocation

Important legal disclosure on Folio information.

  • The information that appears when you select View next to an allocation is provided by the companies and organizations that are independent of Foliofn.
  • We provide access to this information for the convenience of your customers; however, Foliofn has no control over these other companies.
  • Foliofn in no way guarantees the accuracy, reliability, or completeness of any data or information provided in any linked web site or in the short description. Foliofn does not approve or endorse this information.