Creating Portfolio Instruments and Composed Investor Accounts

Creating a Portfolio Instrument

  • Previously Portfolio Instruments could be created by navigating to Instruments -> Portfolio instruments. As part of our April 2025 release we’ve changed Portfolio instruments to be linked to a Collective Investment Scheme. This means that in order to create a Portfolio Instrument now, you must first create a Collective Investment Scheme (under the Instruments main menu) and then “Add” an instrument which will be your Portfolio instrument.

  • When you create the instrument on the CIS, select Portfolio Instrument from the “Type” drop down:

 

  • After creating the instrument, it will be visible on the above CIS page. Then click on the Display Code and on the following page click View Details on the Portfolio Instrument. Then you’ll be able to load various details pertaining to the Portfolio instrument, and most importantly the Composed Contract as is explained in more detail below.

 

Composed Contract

  • A ‘Portfolio instrument’ is linked to a ‘Composed Investor Account’.
  • Investors buy into a Portfolio Instrument, while the assets in the Portfolio Instrument is managed in the Composed Investor Account and invested in different financial Instruments.
  • The Composed Investor Account has the same functionalities as a normal Investor account where, for instance, buy, sell or switch instructions can be executed.

 

When a client invests in a portfolio instrument (or instrument linked to a portfolio instrument), the cash on the client contract moves to the ‘Composed Investor Account’ linked to the ‘Portfolio instrument’ and the client receives units in the portfolio on confirmation of the dealer instruction. No matching of a bank entry therefore takes place on the dealer instruction.

 

When a client withdraws or switches units from a portfolio instrument (or instrument linked to a portfolio instrument), cash on the ‘Composed Investor Account’ linked to the ‘Portfolio instrument’ moves to the client contract on confirmation of the dealer instruction. No matching of a bank entry therefore takes place on the dealer instruction.

The dealer instruction cannot be confirmed if there is not enough cash available in the ‘Composed Investor Account’ linked to the ‘Portfolio instrument’. Units in the ‘Composed Investor Account’ will first need to be sold to ensure enough cash is available to be moved to the client contract to be able to confirm the dealer instruction.

 

 

Last Updated on 1 year ago by Adrienne Dill