Creating and managing models

What is Model Manager

1. Model Manager:
2. Allow partners to create new models and update existing ones.
3. Enable partners to manage multiple end-client accounts simultaneously through a model strategy, by linking clients to models and rebalancing. 
4. Support execution of end-client requests such as partial/full liquidations and cash withdrawals.

Create a new client/account

1. Client/account creation is done through other Saxo Bank systems.
2. Once a client/account is created, it will be available in the platform and can then be linked (connected) to model portfolio.

Create a new model 

1. ‘Create model’ tab in Model Manager enables you to create a new model.

       2. Add General information - The following general information need to be added to a new model:

• Model title (mandatory field): Should reflect the model in an appropriate manner.
• Model description (mandatory field): The description will be presented to the advisor and the end-client.
• Risk level (optional field): Indicative value that you can choose to assign to your model. We currently only support up to 5 risk levels in this setting. 
• Benchmark (optional field): Enables you to compare the client account to the selected benchmark. Benchmarks can be created manually in the ‘Benchmarks’ tab.
• Management type (mandatory field): Management type value selected in this field will be assigned to accounts linked to this model (for details of different management types and their implications, please refer to section of this article on 'Management types').
• Rebalancing frequency (mandatory field): Allows you to establish a schedule for the automatic rebalancing of all accounts associated with this model. The 'Rebalancing day' specifies the day within the quarter, month, etc., so "monthly, 15" would indicate the 15th day of each month. 
• Funding:

Minimum funding (mandatory field): Rebalancing will not start on accounts not funded with the minimum amount specified in this field. It only affects the first rebalancing of an account after it has been linked to a model. If the account has been rebalanced once and the account value subsequently drops below the minimum funding amount, rebalancing will not be interrupted and will continue. 
- Please specify 0 in the field if you do not intend to use this feature.

Maximum funding (mandatory field): An indicative field and has no impact on rebalancing nor restricts attachment of a model. It must always be greater than the minimum funding assigned to this model.

Currency (mandatory field): Defines the currency of the model as well as the currency of the Min./Max. funding amount. It does not limit which instruments can be added to the model. 

• Model image (optional field): An image can be added to the model which will be presented on the overview page.
• Model attachments (optional field): Further documents can be added to the model which allows attaching certain files relevant for the trading model. 

3. Adding instrument allocation to a new model:

• The following instrument types can be added to model allocation: Single Stocks, Funds, Mutual Funds, ETFs, ETNs, ETCs, and Cash.
• 'Minimum', 'Target', and 'Maximum' allocation need to be specified for each instrument, including cash (Please refer to the section on 'Rebalancing Orders' to understand the importance of these fields in rebalancing calculations).
• Platform will only allow you to save model allocations when the sum of 'Target allocations' is 100%.
• The cash allocation at the bottom of 'allocation setup' screen, will have a specific acceptance range. The 'Minimum', 'Target', and 'Maximum' allocations for cash must not fall below the threshold set in 'Partner Settings. 

4. Tags at the bottom of the 'New Model' page are optional. They enable you to categorize models, which aids in the filtering process for locating models by allowing you to search for specific "themes" or tags.

5. Click 'Submit' to apply your changes. It is important to note that your model will not become active and will remain in the 'Unpublished' state until the 'Submit' button is clicked. No rebalancing will be initiated for a newly created model that is in the 'Unpublished' state.

Update model

• To update a model, click on the model title in the model overview page and go to the ‘Model details’ section.
• ‘Change’ tab will appear next to ‘General Information’ and ‘Instruments’. This tab will enable you to update all parameters of this model, except for risk levels which cannot be adjusted once a model is created.

• Once all changes are done, please click on ‘Submit’ to make your changes active. Every time a model is changed a newer version is created. Old versions of the model can be viewed using version selector drop-down on model details screen.

It is important to note that any changes to your model will remain inactive and in the 'Unpublished' state until you click the 'Submit' button. If rebalancing occurs with such a model, the previous version (prior to the new unpublished version) will be used, and rebalancing order proposals will be based on that older version.

Model overview

• Filters: You can filter models in the display overview to make it easier to find a suitable model. The available filters include model name, management type, tags, and model state, among others. Additionally, there are filters based on instrument inclusion, enabling you to search for models that contain specific instruments.

• Persistence of sorting and columns: Columns are not reset upon login to simplify regular model management. As a result, column persistence and sorting are default settings in Model Manager. These preferences are saved in user settings, allowing each user to maintain their own sorting and filters across sessions.

Linking account(s) to model

Linking a single account to a model:

• Model linking can be done at account level. From ‘Client tree’, select the client and underlying account that you want to link to a model.
• Under ‘Model actions’ tab, select ‘Add simple model’ and you will be presented with the full list of models to select from.

• Once a model is linked to an account, model name will appear beside the account selector.

Doing model-account linking in bulk:

• ‘Actions’ tab in Model Manager enables you to create model-account linking in bulk.

• Clicking on ‘Update model connections’ allows you to download a spreadsheet template.

• To execute account-model linking in bulk, you need to fill account ID and model ID in the template and upload it using ‘Upload template’ tab.

Please be aware that we currently limit the number of accounts that can be uploaded in bulk using the template upload to 100.

Switch model on account(s)

Switch model on a single account.

1. Model switching for a single account is done at account level. From ‘Client tree’, select the client and underlying account that you want to switch model on.
2. Under ‘Model actions’ tab, select ‘Switch model’ and you will be presented with the full list of models to select from. 

Switching model in bulk

1. ‘Actions’ tab in Model Manager enables you to switch model in bulk.
2. Clicking on ‘Update model connections’ allows you to download a spreadsheet template.
3. To switch model in bulk, you need to fill account ID and model ID in the template and upload it using ‘Upload template’ tab.

Monitoring

The ‘Oversight’ module allows you to view details of all rebalancing activities. Data on all pages in this module can be filtered, sorted, and downloaded in csv form.

• Orders – This section lists all rebalancing orders with their status. If the order(s) gets rejected/cancelled, then it’ll also list out the reason why rejection happened. The screen also allows users to re-trigger orders that were previously rejected.
• Rebalancing – This section lists all client accounts that have been rebalanced along with the status of rebalancing and the reason why rebalancing happened.
• Accounts - This section lists all client accounts that are being managed through models and will also show any position deviations if any between model and linked client accounts.

Benchmarking

1. You can create benchmarks by combining different indices and assigning weights to each.

 

• A benchmark can then be linked to a model using ‘General information’ amend module on model details screen.

Delinking account from model

1. Select client and underlying account that you want to delink from a model.
2. Under ‘Model actions’ tab, select ‘Remove model’.
3. You will be presented with the option to solely delink from the model or trigger full liquidation after delinking.
   • If you choose to liquidate all positions following delinking, then the rebalancing engine will pick up this account on the same night and will route sell orders the next business day to sell off all positions.
   • If you choose to delink, the account will keep all the instruments but will no longer be rebalanced nor follow the model, thus be completely separated.

Archiving models

Models can be archived, as an alternative to being deleted. For a model to be archived, it is required that the model:

1. Is delinked from all accounts.
2. Has the status of being ‘Active’.

Click on ‘Archive’ icon available against eligible models on model overview screen. Select ‘Confirm’ and the model is archived. It is now stored in the system and can be found and restored for use from the ‘Archived models’ tab.

Management Types

Below are the management types available:

• Model Managed – Neither end-client nor partner users can place single/block orders on Model Managed accounts. These accounts can only be rebalanced.
• Discretionary – End-clients cannot trade but partner users are able to place single/block orders on accounts with this management type. These accounts can be linked to a model and rebalanced.

Authorization Roles

Access to Model manager is controlled via authorization roles. Separating the role accesses will allow for increased compliance and control. Please read which roles are applicable for Model manager here.