1.31 Process Portfolio Rebalancing Rule Detail

This topic provides the systematic instructions to Process Portfolio Rebalancing Rule Detail in user profile module.

The pension holdings can be re-structured automatically based on the age slab or pre defined frequency. Pension Administrator can provide service to re-align the portfolio of the party based on various factors like Market condition, Age of the party, Savings habits etc.

You can define rules for rebalancing with 2 different rule types, namely, Age and Frequency using Portfolio Rebalancing Rule Detail screen.

For age-based rebalancing setup, model portfolio can be provided for the age-based slabs.

For frequency-based rebalancing setup, model portfolio can be provided with processing frequency, next process date and Variance (in percentage). The system processes the last process date on processing.

If the computed actual variance breaches the maintained variance percentage, then eligible portfolios will undergo rebalancing as per half-yearly/Annual frequency maintained.

Actual variance = (Portfolio asset balance in market value / Portfolio asset balance in unit cost) * 100, whereas, unit cost is the average of unit cost derived for a party, portfolio, account and asset combination.

1. On Home screen, type PADREBRL in the text box, and click Next.
   The Portfolio Rebalancing Rule Detail screen is displayed.

   Figure 1-35 Portfolio Rebalance Rule Detail

   
   

   
   Description of "Figure 1-35 Portfolio Rebalance Rule Detail"

   
   
2. On Portfolio Rebalancing Rule Detail screen, click New to enter the details.
   For more information on fields, refer to the field description table.

   Table 1-31 Portfolio Rebalancing Rule Detail - Field Description

   Field	Description
   Rebalance Rule ID	Alphanumeric; 16 Characters; Mandatory Specify the rebalance rule ID.
   Rebalance Rule Description	Alphanumeric; 50 Characters; Mandatory Specify the description for rebalance rule.
   Rule Type	Mandatory Select the rule type from the drop-down list. The list displays the following values: Age Frequency

• Age Based Tab
  This topic explains the Age Based Detail of Portfolio Rebalance Rule Detail screen.
• Frequency Based Tab
  This topic explains the Frequency Based Detail of Portfolio Rebalance Rule Detail screen.