Quilter’s platform makes it easier for you to provide discretionary services to a wide range of advisers. Through X-Hub, you can manage your portfolios quickly and efficiently on behalf of your clients. Below is some important information you should know when managing portfolios on our platform.
Manage your portfolios quickly and efficiently
Four key tips when building portfolios
- We recommend only building portfolios for our unbundled charge basis; Charge Basis 3. This will ensure you are accessing a consistent set of funds and can run a single set of portfolios for this charge basis.
- You can publish one range of portfolios for all our product types. However please note if you wish to use Exchange Traded Instruments (ETIs) then the portfolio cannot be enabled for the Collective Investment Bond (CIB).
- When you select a benchmark for your portfolio on X-Hub, it will appear on client valuations, against model performance, net of all fees. It is not compulsory to add a benchmark on X-Hub, so you should consider whether this is the right approach for you and your clients.
- Exchange traded commodities cannot be held in offshore bonds. If you choose to include exchange traded commodities in your portfolios it will make the CIA wrapper ineligible for inclusion inside offshore bonds and these accounts will be removed from the discretionary service in that event.
Reporting
| Reporting type | What you need to know |
| Depreciation Reporting (10% Depreciation) | Following the Edinburgh Announcements in 2022 we ceased monitoring 10% depreciation on portfolios in January 2023. |
| Quarterly Reporting COBS 16A.4 |
We will be including extra information in customer quarterly valuation reports to satisfy the obligations under COBS 16A.4. This will be presented as a table and is in addition to the transaction records and overall account activity that we capture and communicate. |
| Charges disclosure – differences between information provided by fund management firms and information on our illustrations | The charges disclosed within a KID alone do not always meet regulatory requirements under COBS. Because of this we provide additional charge disclosure in our illustrations, in line with COBS 14.3A.11. This may include estimated performance fees, as well as property expenses on property funds. Investment firms distributing units in collective investment undertakings or PRIIPs shall additionally inform their clients about any other costs and associated charges related to the product which may have not been included in the UCITS KID or PRIIPs KID and about the costs and charges relating to their provision of investment services in relation to that financial instrument. |
Discretionary managed portfolio fees
These fees will accrue daily and are deducted monthly on the 1st of the month. If there are trades in progress on a client’s account, the fee will be deducted at the next available point.
Accrued fees will also be paid if a customer sells their investments or switches from one discretionary model portfolio to another.
The fee will be deducted from cash within your clients account, where this is insufficient it will be funded by selling units to cash for payment of the fee.
All fees are paid by BACS on the 25th of the month, unless this date falls on a weekend, when the payment will be made on the last working day before the weekend.
You can add or vary the fee that you charge. When doing so, fees can be implemented at adviser firm level as well as at portfolio level. We would expect advisers to communicate any change in your discretionary managed portfolio fee to their clients, in particular any fee increase. We will be monitoring this behaviour on an ongoing basis to ensure that any changes are being appropriately disclosed.
There is a report for fees that is accessible on X-Hub, which will show you the fees that have been charged, however this does not confirm that the fees have been paid. Where a fee is present in the report but has not been received it will be included in the subsequent fee payment run.
Reports on X-hub
Instructions on how to run reports in X-hub are available here: How do I generate reports on X-Hub? | Quilter
Dealing and cut off points
We continue to prefund trades as we have always done, however there are some changes to how we trade, as all sell legs of a transaction will need to complete before the buy leg can start. ‘Complete’ means that we have received confirmation of the trade from the fund manager, which often is the same day that a trade is placed, however in some instances this will be longer.
The funds you select in your portfolio and the time that trades are initiated will be the main determinant of the length of a trading cycle.
Read more information on our dealing and cut off points on the Adviser Support Hub.
Cash management
All cashflows into the model portfolio are always invested according to the model’s cashflow preferences. This is reinvestment into the portfolio on an align to target or proportional basis.
Cash may appear in the model portfolio if the funds in the model generate rebates – these payments are typically 3-8bps per annum.
Corporate actions
We will email details of corporate actions to the contacts you provide us with. We will not update portfolios or create trades prior to the completion of the corporate action.
This means that for any mergers or conversions you, as the discretionary manager, need to update your portfolio template with the new fund as soon as it becomes available. All existing holdings will be merged/converted although it may take up to 10 days for the new holdings to show. In this period we recommend that you do not attempt to rebalance your portfolios. If you need to take urgent action with any of the other funds, the asset switch functionality can be used.
Trades monitoring
All trades will be monitored after submission. In some instances, where important transactions are taking place on a client’s account, such as withdrawals, corrections or account maintenance, your instruction may not be able to be processed at the next valuation point. If this happens your instruction will be queued and will be completed as soon as possible. You can view queued transactions in the deferred transactions report.
If trades fail, they will be identified and processed in the back office where best pricing will be applied if appropriate.
Corrections
In the event of a trading error that is not the fault of Quilter, the discretionary manager will need to work with the advisory firm to work out how best to recompense the underlying client. We will not be able to apply unit adjustments to policies other than as top-ups which will need to be administered by the advisory firm.