Understanding asset allocation reporting

Asset allocation reports provide your clients with a snapshot of the composition of your client’s portfolio, split across core asset classes:

• Cash
• Fixed interest - Australian
• Fixed interest - International
• Shares - Australian
• Shares - International
• Property
• Other.

You can access this reporting online through:

• Asset allocation reporting in Adviser Online
• Asset allocation - detailed reporting in Wrap Online
• Portfolio Review Report (PRR) in Wrap Online
• Digital Portfolio Manager (DPM)

We also provide this in our annual statements. 

These reports are indicative and may differ between portals. This is explained further below.

We are provided with managed fund data held directly or through a Separately Managed Account (SMA) which has been sourced from third parties including Morningstar Australasia Pty Limited (ABN) and fund managers. As an adviser you (or your licensee) also can override certain allocations. Macquarie does not independently verify its accuracy.

The reporting does not have the functionality to look through to the underlying asset classes of the following assets where they are held directly in a wrap account:

• ASX-listed Exchange-Traded Funds (ETFs) are classified as ‘Shares – Australian’
• ETFs listed on an international stock exchange are classified as ‘Shares – International’ 
• ASX-listed hybrid securities are classified as ‘Fixed Interest – Australian’.

If ETFs or hybrid securities are held through an investment option (e.g. a managed fund or the Separately Managed Account), the product issuer may treat these investments differently and may look through the ETF or hybrid.

SMA asset allocations are based on end of month holdings at the SMA Model Portfolio level. These do not include any ‘do not hold’ customisations and may not reflect the composition of SMAs held by your client in their portfolio where
customisations have been applied.

This methodology utilises the super menu’s classification of ETFs.

The detailed asset allocation report is only available in Wrap Online. All reports will be prepared using the latest asset allocation information available at the date of running the report. This includes reports on historic dates.

The Asset Allocation (AA) benchmark tool makes it easy to analyse the drift in your client’s portfolio asset allocation away from their benchmark. It’s available for all Macquarie Wrap products and can be used on Adviser Online by ‘asset class’, not at the GICS level. 

The AA benchmark tool is available in Adviser Online in Account Overview under the Asset Allocation section.

The AA benchmark tool will appear in the following sections in Adviser Online:

• The strategic Adviser Online reporting suite (Account Overview and Asset allocation Override print view)
• As dual pie charts and an additional table with a second option (bar chart) to show the comparison and variance.

The AA benchmark tool won’t appear in the Portfolio Review Report (PRR). It also isn’t available for your clients when they log in via either Macquarie Online Banking or via the Macquarie Mobile Banking app.

We’ll automatically carry across any previous AA benchmarking previously set up in Wrap Online to Adviser Online.

To turn the AA benchmark tool on:

1. Log into Adviser Online
2. Under the Clients tab in the side navigation, select Accounts
3. Enter the account number you want to set up the Asset Allocation Benchmark tool for
4. Once you’ve confirmed the account, select Account Overview
5. Under the Asset Allocation section, select the Amend asset allocation benchmark button
6. Enter your benchmark in the Proposed benchmark column, ensuring that the benchmark totals 100%
7. Select the Review button
8. Select the Submit button
9. Select the View in account overview button to see your client’s asset allocation and benchmark comparison.

1. Log into Adviser Online
2. Under the Clients tab in the side navigation, select Accounts
3. Enter the account number you want to switch off the Asset Allocation Benchmark tool for
4. Once you’ve confirmed the account, select Account Overview
5. Under the Asset Allocation section, select the remove benchmark link
6. Select the Remove button in the popup window to confirm that you want to switch off the AA benchmark tool.

To provide further flexibility in our reporting, the Flexible Asset Allocation facility allows you to override your client’s default asset allocation to another asset class. Changes are reflected in the asset allocation reporting so clients can see their intended portfolio composition. This won’t impact your client’s tax reporting.

Please note, to use the Flexible Asset Allocation facility you must have a Macquarie ID with dealer access or adviser access (Full/Limited/View only) where at least one of the adviser codes has been nominated by the dealer to have access to the override functionality.

To use the Flexible Asset Allocation facility at a dealer level or as a nominated adviser:

1. Log in to Adviser Online
2. Select Clients and Wrap account administration from the left-hand menu
3. Select Setup or Maintain asset allocation override
4. Select the required dealer (or adviser) from the drop-down for which the override is to apply
5. Click on the asset type you would like to override by selecting either:
   • override an asset allocation at Security level, or
   • override an asset allocation for Managed investments and term deposits
6. To view all the securities or managed investments held by accounts under the dealer or adviser, select either All securities currently held, or All managed investments and term deposits currently held. Alternatively, to view an individual security or managed investments held on the platform, select either Individual security or Individual managed investment
7. Once chosen, click Display
8. To perform an override, click on the update link next to the required asset
9. Enter the required percentages for the relevant asset classes. Once the override percentages have been entered, click on the update link to save the override.

Once the update has been made, it will be shown under the dealer override or adviser override section.

The overrides conducted will flow through to all adviser and client reports that display an asset allocation including statements (except DPM)

To remove an override, click on the remove link and this will remove the override immediately. 

You can add other assets to a portfolio in the Wrap Adviser Portal: 

1. Log in to Adviser Online
2. Select Go to and click Macquarie Wrap from the left-hand menu
3. Select Administration
4. Select Maintain an investment account
5. Enter the account Name or Number
6. Select Enter or Maintain other assets
7. Complete all the required fields
8. Click Add.