ROA - Lonsec Rebalance

Chapter 1: Introduction

• Logging in, confirmation of visibility on screen.

• New document available in the supporting documents folder: long SEC ROA text, focused solely on rebalancing.

• Need to change wording in the ROA; one ROI completed as a model for changes.

• Managed account transition:

  • Instead of portfolio rebalancing, clients are moving to a managed account.

  • Clients will use the Long SEC managed account.

• Credentials to be shared and saved.

• Model portfolios available; navigate to the managed account portal, select appropriate managed account type.

  • For clients with a low cost defensive investment:

    • Alternative options include co plus, super, pension, etc.

• Underlying investments of managed accounts need to be saved in the client’s folder.

Chapter 2: Rebalancing Cash Account

• Download necessary documents by clicking export and saving as a PDF.

• Two essential downloads from reports and documents tab:

  • Investment Philosophy and Process PDF

  • SOA inserts Word document for ROA usage.

• Include relevant sections from the SOA inserts to the ROA file; important texts include:

  • Reasons for managed accounts

  • Long SEC investment details

  • Payment management approach and key benefits.

Chapter 3: The Managed Account

• Cash account essentials:

  • Needs to account for:

    • Adviser service fee from CSA.

    • Annual pension drawdown.

• Example calculations:

  • If a client draws down $2,000 a year and pays $12,000 in fees, the cash account would hold $24,000.

• Remaining funds invest in the appropriate Long SEC model portfolio based on client risk profile (e.g., moderate investor).

• Search for funds within the system under the correct menu; ensure correct account type is selected.

Chapter 4: Put That Cash

• Pension drawdown and service fees should be included when determining cash balance allocation.

• Ensure current scenario reflects all existing funds from the CFX report.

• Proposal creation will involve identifying any changes, particularly regarding service fees and cash allocation.

• If fees are too high, a screenshot is required to send to the adviser for review.

Chapter 5: Managed Account Service

• The summary of further advice section will include managed account service text.

• Text from Long SEC documents should be condensed to maintain clarity and relevancy.

• Ensure all sections reflect the shift from rebalancing to establishing a managed account.

• Update risks and consequences to align with the managed account transition.

• Advice to improve client positions should be articulated clearly and accurately.

Chapter 6: A Managed Account

• Serve fee and pension payments designated for cash accounts must be clearly delineated:

  • Single funds for pension, adviser service fee only for super accounts.

• Rationale behind this structure lies in the automatic rebalancing of managed accounts—sustaining cash flow needs while minimizing rebalancing requirements.

• Attachments should include previous REO materials and Long SEC investment philosophy documents.

Chapter 7: Conclusion

• Process isn't overly complicated but requires understanding and adherence to ethical guidelines.

• Rewatch instructional video for clarity and thorough understanding.

• Documentation of the process will be beneficial for both current and future reference.