Static and Dynamic Investment Allocations

When you initially fund a model, you specify the target allocation percentages across assets in the model.

For example, if your model comprises five instruments, you might set your investment allocation percentages to:

Instrument A: 10%

Instrument B: 15%

Instrument C: 15%

Instrument D: 25%

Instrument E: 35%

Static Allocations

If you set your model to “Static,” these initial allocation percentages are saved and applied each time you invest in the model, and are used as the targets when you rebalance the model.

Dynamic Allocations:

As prices change, the allocation ratios you defined with your initial investment will also change. For example, they might have drifted to:

Instrument A: 12%

Instrument B: 22%

Instrument C: 7%

Instrument D: 33%

Instrument E: 26%

If you have set your model to “Dynamic,” the next time you invest in the model it will use allocation percentages as close to the “new” percentages as it can.

Use the Advisor Setup Presets tab to define a tolerance percentage for desired model weights. Once defined, you can run the Unbalanced check to find invested accounts in each dynamic model that fall outside of the tolerance percentage.