Managing the Client Process

Transcription

1 Managing the Client Process Overview Importing Options Overview What is required to import information into Research Mode? How to import from Excel into Research Mode What is required to import information from Excel into Portfolio Mode? How to import from Excel into Portfolio Mode What is required to download position imports from a custodian? How to install the Principia Importer tool How to download portfolio positions from a custodian How to import client positions into Principia Creating Batch Reports Overview What to consider before generating batch reports How to set the parameters for batch reports How to generate batch reports Creating the Investment Policy Statement Overview Creating an Investment Policy Statement Entering Financial goals Entering information for Associated Parties Entering a client s Risk Tolerance Entering a client s Financial Constraints Creating a Proposed Portfolio Selecting securities for a portfolio Establishing portfolio monitoring for an IPS Establishing the portfolio implementation settings for an IPS Selecting and entering the report settings Saving an IPS report in Microsoft Word How to save an Investment Policy Statement Opening and editing an Investment Policy Statement Can I add selections to the IPS wizard? Adding selections for Classification Adding selections for Assessment Method Adding Securities for Portfolio Monitoring Adding selections for Portfolio Securities Version 1.0 i

2 Managing the Client Process This training manual walks you through the steps involved in managing the client process in Principia. It will show you how to import data from an Excel spreadsheet, download portfolio information from a data provider, and how to run batch reports for multiple clients. You will also learn about the Investment Policy Statement, so you can work with clients to define and document investment goals, as well as identify their risk tolerance and agree on an approach for a financial plan. In this manual, you will learn the following: How to import security information from an Excel file into Research Mode How to import portfolio information from an Excel file into Portfolio Mode The process to download and import portfolio positions from a data provider How to use the Batch Report tool, and How to use the Investment Policy Statement Wizard. Overview Version 1.0 1

3 Overview Importing Options Importing Options Importing allows you to bring portfolio and research information from an outside source into Principia. You can import information into Research Mode and Portfolio Mode from an Excel spreadsheet. From Portfolio Mode, you can also import client information you download from a data provider. In this section, you will learn the following: What is required to import information into Research Mode How to import from Excel into Research Mode What is required to import information from Excel into Portfolio Mode How to import from Excel into Portfolio Mode What is required to download position imports from a custodian How to install the Principia Importer tool How to download portfolio positions from a custodian, and How to import client positions into Principia. Overview Importing a list of investments requires the following information in an Excel file: Securities must be listed in rows Each row must have a ticker, a CUSIP, or a security name as an identifier The securities must be on the first sheet of the Excel file The first row is assumed to contain column headers, and will be ignored Principia will identify only those securities available in the universe from which you launch the import function 10 consecutive empty rows designate the end of the list, and The number of rows cannot exceed 65,000. What is required to import information into Research Mode? As an example, you have an Excel file with 425 securities entered on a single worksheet. Multiple security types are listed - stocks, mutual funds and ETFs. You launch the import function from the Stocks universe in Principia. If you want to import mutual fund or ETF data into Principia from the worksheet, you need to return to Principia and move to the correct universe before re-launching the import tool. 2 Version 1.0

4 Importing Options How to import from Excel into Research Mode Before importing the information, note which column in the Excel spreadsheet is the ticker, CUSIP, or security name field. You will need to enter this information in the import dialog box. To import a list of securities from a saved Excel file, do the following in Research Mode: 1. Be sure you are in the universe (i.e., Stocks, Mutual Funds) whose securities you want to import. 2. From the menu bar at the top of the screen, select File Import from Excel. The Import dialog box appears. How to import from Excel into Research Mode Select this option from the File menu 3. From the Import dialog box, click the Browse button. The Import Excel File dialog box appears. Click here to find the saved Excel file Version 1.0 3

5 How to import from Excel into Research Mode Importing Options 4. Navigate to the location where the Excel file is saved. 5. In the Import Excel File window, select the file you wish to import and click the Open button. The Import Excel File dialog box closes. Select the file whose data you want to import 6. From the Ticker, CUSIP, or Security Name drop-down, assign at least one identifier to the Excel column and then click OK. The drop-down menu displays the columns to be assigned on the Excel spreadsheet The program will choose the field that has the highest preference. The order of preference is Ticker, CUSIP, and Name. 4 Version 1.0

6 Importing Options How to import from Excel into Research Mode 7. A status bar appears, and the system will display the imported securities. Otherwise, a warning message indicates the number of unmatched investments. Click OK to view the imported securities in Research Mode. Click OK to complete the import process 8. From the File menu click Save. The Save As dialog box appears. Click this option to save the imported file list 9. In the Save As dialog box, enter a name in the File Name field then click Save to return to Research Mode. Version 1.0 5

7 What is required to import information from Excel into Portfolio Mode? Importing Options Importing portfolio positions from an Excel file into Principia requires the following information in the Excel file: Client Name Portfolio Name Security Name (or Ticker or CUSIP) Market Value, Price or Number of Shares (at least two out of three), and Security Type. What is required to import information from Excel into Portfolio Mode? Before you start the import process, note the fields on the Excel file. You will assign this information to the Excel Portfolio Import dialog box. To import portfolio allocation information into Principia from an Excel file, do the following: 1. From the toolbar at the top of the screen, click the Portfolio Mode icon. 2. From the menu bar at the top of the screen, select File Import Portfolio from Excel. The Excel Portfolio Import dialog box appears. How to import from Excel into Portfolio Mode Select this option from the File menu 3. Click the Browse button. The Import Excel File dialog box appears. Click this button to find the saved Excel file 4. Navigate to the location on your computer where the Excel file is saved. 5. Highlight the saved Excel file, then click OK. The Import Excel File dialog box closes. 6 Version 1.0

8 Importing Options How to import from Excel into Portfolio Mode 6. Click the drop-down next to the Client Name field and select the column it is associated with in the Excel spreadsheet. The drop-down menu is used to assign a column from the Excel spreadsheet 7. Repeat step 6 until the following fields in the Excel Portfolio Import window are associated with columns in the saved spreadsheet file: Portfolio Name Security Name, (or Ticker or CUSIP) Market Value, Price or Share Quantity (at least two out of three), and Security Type. 8. Click the OK button. 9. If you have previously imported portfolio information, a warning message appears. Click Yes if you wish to reuse the mappings from the previous import. Otherwise, click No to continue. Click Yes if you wish to save security mappings for the next time you run the import process. Version 1.0 7

9 How to import from Excel into Portfolio Mode Importing Options 10. If Principia does not recognize an investment, the Unrecognized Securities dialog box appears. To map a security, highlight it and click Identify. Use the Source arrow to select the database you want to use, then type the name of security. Click OK and the Unrecognized Securities dialog box reappears with the security removed from the list. To map a proxy, highlight the security, click the Assign Proxy button and then click the proxy you want to use. Click OK and the Unrecognized Securities dialog box appears with the security removed from the list. To remove a security, highlight the security, click Remove and then click OK. The security is removed from the Unrecognized Security dialog box. Select one of these options to assign unrecognized securities. 11. After you have identified, assigned as a proxy, or removed unwanted securities, click OK to close the Unrecognized Securities dialog box. The Allocation Methodology dialog box appears. 12. Choose the appropriate allocation methodology, then click the OK button to view the imported information in the Advisor Palette. From the Import by and Tracking Method sections, select an option for allocating portfolios. 8 Version 1.0

10 Importing Options What is required to download position imports from a custodian? To download position imports outside of Excel, you will need access to one of the following data provider websites: Charles Schwab DST FAN Mail, or Pershing InfoDirect. What is required to download position imports from a custodian? You also need to download and install the Principia Importer tool. The Position Importer tool can be downloaded from the Morningstar E-Delivery website: The Principia Importer tool is a standalone application that allows you to import client and portfolio positions from a third-party data provider. To access the tool, you must download and install it from the Principia E-Delivery website. To download the Principia Importer, do the following: 1. Login to the E-Delivery site (see link above). 2. In the available fields, enter the Last Name and Subscription ID for the person in the office who subscribes to Principia. 3. Click the Submit button. 4. At the bottom of the Software Downloads page, click the Download link to install the Portfolio Importer application and create an icon on your desktop. How to install the Principia Importer tool Version 1.0 9

11 How to download portfolio positions from a custodian Importing Options You can use the Principia Importer to access client and portfolio information from your data provider. Using the tool will reduce the time you spend manually entering information into the Principia system. To download the portfolio positions from a custodian, do the following: 1. Launch the Principia Importer tool from your desktop.the Principia Importer window appears. 2. From the Data Providers tab, double-click a row in the grid to select a custodian. How to download portfolio positions from a custodian The Data Provider area displays the name and website address for available custodians 3. Enter the login information to access the custodian website, then download the data files to a location on your computer. Make a note of this path. You will navigate to this location in the Import Options tab of the Principia Importer tool. 4. From the title bar of the data provider window, click the minimize button. 5. On the Principia Importer window, click the Import Options tab. 6. To select the location to retrieve the downloaded data files, double-click the row in the grid where the Data Provider and Path for Download Files are located. Select a Data Provider from the available options 10 Version 1.0

12 Importing Options How to download portfolio positions from a custodian 7. From the Browse For Folder dialog box, navigate to the location on your computer where the downloaded data files are stored, then click OK. Click OK to select the location of the downloaded files 8. Select the check box next to the custodian s name to assign the data provider, then click the Create XML button to start the process of extracting data from the file. Click this button to extract the data files into XML format 9. A message box appears, indicating the dbemstar.xml file was successfully created. Click OK to close the message box. The dbemstar.xml file is extracted to the Principia Importer folder in the Program Files/Morningstar directory. 10. To view a log file about the extracted data, click the Reports tab, then click the data provider name in the Current Reports or Previous Reports grid. Version

13 How to import client positions into Principia Importing Options After you have downloaded the client and portfolio data from your the custodian, you will need to import the information into the Advisor Palette. To import the portfolio information into Principia, do the following: 1. From the Principia Importer dialog box, click the Launch Principia button. How to import client positions into Principia Click this button to open Principia 2. In Principia, click the Portfolio Mode icon. 3. From the menu bar at the top of the screen, click File Import Portfolio. The Import dialog box appears. Select this option from the File menu 12 Version 1.0

14 Importing Options How to import client positions into Principia 4. Use the Look in drop-down field and navigate to the Principia Importer folder in the Program Files/Morningstar directory, then click the Open button. Use this drop-down field to find the Principia Importer folder 5. Double-click the dbemstar.xml file to open it. Select this file 6. If you have previously imported portfolio information, a warning message appears. Click Yes if you wish to reuse the mappings from the previous import. Otherwise, click No to continue. Click Yes if you wish to save security mappings for the next time you use the Import feature Version

15 How to import client positions into Principia Importing Options 7. If Principia does not recognize an investment, the Unrecognized Securities dialog box appears. To map a security, highlight it and click Identify. Use the Source arrow to select the database you want to use, then type the name of security. Click OK and the Unrecognized Securities dialog box reappears with the security removed from the list. To map a proxy, highlight the security, click the Assign Proxy button and then click the proxy you want to use. Click OK and the Unrecognized Securities dialog box appears with the security removed from the list. To remove a security, highlight the security, click Remove then click OK. The security should be removed from the Unrecognized Security dialog box. Select one of these options to assign unrecognized securities 8. After you have identified, assigned as a proxy, or removed unwanted securities, click OK. The Unrecognized Securities dialog box appears. 9. Choose the appropriate allocation methodology and then click the OK button to view the imported information in the Advisor Palette. From the Import by and Tracking Method sections, select an option for allocating portfolios. 14 Version 1.0

16 Creating Batch Reports Overview Creating Batch Reports Batch reports can be generated only from the Snapshot view in Portfolio Mode. When you generate batch reports from Principia, you need to select the clients whose portfolios will be included in the batch. You cannot select individual portfolios from a client; all of them will be included. For each portfolio, a Portfolio Snapshot report will be generated, as well as one Investment Detail Report for each security type in the portfolio. For example, if a portfolio contains four mutual funds, two stocks and one ETF, the batch reporting process will generate four files: Portfolio Snapshot Investment Detail Report for Mutual Funds Investment Detail Report for Stocks, and Investment Detail Report for Exchange-Traded Funds. Overview Before generating batch reports, keep the following points in mind: You ll want to select which clients to include when the reports are generated. You can easily include all clients at once if you want. You need to decide whether only the Portfolio Snapshot report will be created, or whether you also want to generate the Investment Detail Reports as well. You need to decide where the reports will reside once they are created. By default, they will be saved to the main Principia User folder. You can select a different, existing folder, or you can create new folders. The new folders could be named for each client, or for the time period (e.g., 2010 Q1 Batch Reports) in which the reports were created. What to consider before generating batch reports Version

17 How to set the parameters for batch reports Creating Batch Reports Setting the parameters for batch reports involves the following: Choose which clients to include in the batch Decide whether to include the Investment Detail Report as part of the batch, and Select a location for each client where the reports will be housed. This makes it easy to find the reports once they are generated. How to set the parameters for batch reports To set the parameters for a batch report, do the following: 1. In Principia, click the Briefcase icon on the lower toolbar to go to Portfolio Mode. (You do not have to select a client.) 2. From the View drop-down menu, select Snapshot View. From the drop-down, be sure to select Snapshot View 3. From the menu bar, select Batch Reporting Settings/Results. The Batch Reporting Configuration dialog box appears. Select this option from the Batch Reporting menu 16 Version 1.0

18 Creating Batch Reports How to set the parameters for batch reports 4. On the Clients tab, check the box next to the name(s) of the client(s) you want to include in a batch. To choose all clients, click the Select All box in the bottom-left corner of the dialog box. 5. To include the Investment Detail Report, check the Include Investment Detail Reports box. Check the box next to the name(s) of the client(s) you want to include Check this box to include the Investment Detail Report for securities in the portfolios 6. To set the destination for the reports once they are generated, click once a client s name so it is highlighted. 7. Click the Browse button. The Select a Destination dialog box appears. You can either select an existing folder, or create a new one specifically for the client or time period. Once a client s name is highlighted, the Browse button is activated 8. To create a new folder, click the Make New Folder button. A folder called New Folder will appear under the directory you were working in. Click this button to create a new folder Version

19 How to generate batch reports Creating Batch Reports 9. Click once on New Folder. 10. Press <F2> on your keyboard. This allows you to type a new, more descriptive name for the folder. 11. Click OK to close the Select a Destination dialog box. 12. Repeat steps 6-11 for each client where you want to customize the destination folder. Before generating batch reports, be sure to set the parameters. To generate batch reports, do the following: 1. From the menu bar, select Batch Reporting Generate. The Client Batch Reporting Status dialog box appears. How to generate batch reports Select this option when you are ready to create the batch reports 2. A confirmation message will appear when the batch job completes. Click OK to close the dialog box. You can also check the status by selecting Batch Reporting Settings/Results, and selecting the Details tab on the Batch Reporting Configuration dialog box. Select this tab to see when the last batch job ran 3. To view the reports, go to the folder you determined when setting the parameters. 18 Version 1.0

20 Creating the Investment Policy Statement Overview Creating the Investment Policy Statement This section will show you how to create an IPS for a client. Overview To create an Investment Policy Statement do the following: 4. From the Advisor Palette in the Portfolio Mode of Principia, right-click once on a client's name to select it. 5. From the menu, click New Investment Policy Statement. The Morningstar Investment Policy Statement window appears. Creating an Investment Policy Statement Right-click on a client s name, then select New Investment Policy Statement The table below provides information about the fields available on the General Information step. Field Name Client Name Proposal Name Proposal Purpose Description This is the client file name you selected in Principia before opening the IPS wizard. This should be entered automatically for you. Type a name for the proposal here. This will appear on the cover page of the report. Enter the main purpose of the plan. For example: To establish a retirement plan for Jill Green. Version

21 Entering Financial goals Creating the Investment Policy Statement 6. On the General Information tab of the Morningstar Investment Policy Statement wizard, type a Proposal Name. Enter IPS Proposal Name here 7. Optionally, enter information in the Proposal Purpose field. 8. Click Next. You should now be on the Financial Goals step. In this section, you will enter financial goals for the client. Do the following: 1. In the Description field, enter a description of financial goals for the client. Entering Financial goals Use these buttons to Add or Remove goals 2. Click Next when done. You should now be on the Associated Parties step. 20 Version 1.0

22 Creating the Investment Policy Statement Entering information for Associated Parties In this section, you will enter the information for all parties associated with this plan. To enter information for Associated Parties, do the following: 1. From the form area at the bottom of the step, make a selection from the Classification field. Entering information for Associated Parties Select a Classification for the Associated Party. 2. Enter name and demographic information in the rest of the form area. This section displays information for Associated Parties 3. To save the data and have it appear in the grid at the top of the step, click on the row for Party Repeat steps 1-3 for all additional parties. To add a sixth party (or more), click the Add Party button. To delete a party, select the party s row, then click the Delete Party button. To erase information in the form area, click the Reset button. 5. Click Next. You should now be on the Risk Tolerance step. Version

23 Entering a client s Risk Tolerance Creating the Investment Policy Statement In this section, you will enter details relating to the client's risk tolerance. Do the following: 1. Select a Risk Level from the drop-down field. 2. Select the Assessment Method from the drop-down field. 3. Enter any additional Notes describing why you selected this risk level. Entering a client s Risk Tolerance You can enter notes regarding the client s risk tolerance here. 4. Click Next. You should now be on the Financial Constraints step. 22 Version 1.0

24 Creating the Investment Policy Statement Entering a client s Financial Constraints In this section, you will enter details relating to the client s financial constraints. Do the following: 1. In the Value of assets included in Plan $ field, enter a dollar amount. 2. Enter any Liquidity Constraints. 3. Enter any Tax Constraints. 4. Enter the Marginal Federal Rate %. 5. Enter the State Rate %. 6. Enter the Local Rate %. 7. Enter Other Constraints. Entering a client s Financial Constraints Liquidity, Tax, and Other Constraints can be added to the appropriate sections of this window 8. Click Next. You should now be on the Proposed Portfolio step. Version

25 Creating a Proposed Portfolio Creating the Investment Policy Statement In this step you can enter a proposed portfolio s target asset allocation. To enter the Proposed Asset Allocation, do the following: 1. In the Target % column, enter the target allocation for each asset class. Creating a Proposed Portfolio The Total value at the bottom of this column must equal exactly 100% before you can proceed. 2. In the Allowed Range Bottom % field, type the minimum allowed percentage for each asset class. 3. In the Top % field, type the maximum allowed percentage for each asset class. The pie chart displays the Proposed Asset Allocation 4. Click Next. You should now be on the Portfolio Securities step. 24 Version 1.0

26 Creating the Investment Policy Statement Selecting securities for a portfolio In this step, you can decide which asset classes to include or exclude from a client s portfolio. To include or exclude portfolio securities, do the following: 1. To include an asset class, choose the option under the Include column. 2. To exclude an asset class, choose the option under the Exclude column. 3. To exclude an asset class by client request, choose the option under Exclude at Client Request. Selecting securities for a portfolio Use the Portfolio Securities section to identify which asset classes are included or excluded from the IPS. 4. Click Next. You should now be on the Portfolio Monitoring step. Version

27 Establishing portfolio monitoring for an IPS Creating the Investment Policy Statement In this step, you can define the frequency with which the asset allocation and portfolio implementation will be reevaluated. You can also use this step to determine the criteria for reevaluation. To determine the frequency and criteria for reevaluating the asset allocation, do the following: 1. From the Asset Allocation section, check the Scheduled box next to Revisit Asset Allocation. 2. From the drop-down field, select the frequency for reevaluation. 3. To establish criteria for reevaluation, check the By Criteria box and one or more of the selections. Establishing portfolio monitoring for an IPS Select the frequency with which to revisit the asset allocation 26 Version 1.0

28 Creating the Investment Policy Statement Establishing the portfolio implementation settings for an IPS To determine the frequency and criteria for reevaluating the portfolio implementation, do the following: 1. From the Portfolio Implementation section, check the Scheduled box next to Security Evaluation. 2. From the drop-down field, select the frequency for reevaluation. 3. To establish criteria check one or more of the By Criteria boxes. Establishing the portfolio implementation settings for an IPS Select the frequency with which to revisit Portfolio Implementation 4. Click Next. You should now be on the Report Settings step. Version

29 Selecting and entering the report settings Creating the Investment Policy Statement In this step, you will edit the cover page, generate the report, and save the IPS Report. Note that you can add a logo both for your client, and yourself. To edit the cover page, do the following: 1. From the Report Setting tab, click the Edit Cover Page button. 2. Enter the Prepared For and Prepared By information. 3. To include a logo, check the Include Logo box. 4. Click the Browse button. The Open dialog box appears. Selecting and entering the report settings Click the Browse button and navigate to your saved company logo 5. Using the Look in drop-down, navigate to and select the logo. Click the Look in drop-down to navigate to your saved company logo 6. Click Open. 7. Click OK to return to the Report Settings page. 8. Click Generate Report. The report appears in a new window as a Microsoft Word document. 9. Click OK when the Finished generating report dialog box appears. 28 Version 1.0

30 Creating the Investment Policy Statement Saving an IPS report in Microsoft Word To save the IPS Report as a Microsoft Word document, do the following: 1. From the Report Setting tab, click the Generate Report button. The report generates as a Microsoft Word document. 2. From the menu bar, click File...Save As. 3. In the File Name field, enter the name of the file. Saving an IPS report in Microsoft Word Click the Save in drop-down and navigate to the location where you want to save the IPS file 4. Click Save. You can save an IPS at any point while you are using the tool. To save an IPS, click File... Save at the top of the page. How to save an Investment Policy Statement To open or edit an IPS, do the following: 1. From the Advisor Palette in the Portfolio Mode of Principia, right-click once a client's name to select it. 2. From the menu, click Edit Investment Policy Statement. The IPS Wizard window appears. 3. Make any modifications you want, then click the Save icon. 4. From the menu bar, select File Exit when all changes have been made. Opening and editing an Investment Policy Statement Version

31 Can I add selections to the IPS wizard? Creating the Investment Policy Statement This section will show you how to add selections to a number of different drop-down fields available on most of the tabs in the Investment Policy Statement wizard. If the existing options do not meet your needs, this is your chance to create values that match your practice. You can add new selections for the following tabs and items: Associated Parties/Classification Financial Constraints/Assessment Method Financial Constraints/Risk Level Portfolio Monitoring/Allocation by Criteria Portfolio Monitoring/Evaluation by Criteria Portfolio Monitoring/Revisit Schedule Portfolio Monitoring/Security Evaluation Schedule Proposed Portfolio/Portfolio Securities. Can I add selections to the IPS wizard? To create additional items for the Classification drop-down field in the Associated Parties tab, do the following: 1. From the menu bar, select Resources...Edit. The Manage Selections dialog box appears. 2. From the Tab/Item drop-down field, be sure Associated Parties/Classification is selected. 3. Type a Name for the selection. 4. Click Add. 5. Click Save. Adding selections for Classification Make sure Associated Parties/Classification is selected here 6. Click Close. 30 Version 1.0

32 Creating the Investment Policy Statement Adding selections for Assessment Method To create additional items for the Assessment Method and Risk Level drop-downs in the Financial Constraints tab, do the following: 1. From the menu bar, select Resources...Edit. The Manage Selections dialog box appears. 2. From the Tab/Item drop-down field, select one of the following: Financial Constraints/Assessment Method Financial Constraints/Risk Level 3. Enter a Name for the selection. 4. Click Add. 5. Click Save. Adding selections for Assessment Method Enter a name for the Financial Constraints/ Assessment Method drop-down 6. Click Close. Version

33 Adding Securities for Portfolio Monitoring Creating the Investment Policy Statement To create additional options for the Portfolio Monitoring tab, do the following: 1. From the menu bar, select Resources...Edit. The Manage Selections dialog box appears. 2. From the Tab/Item drop-down field, select one of the following: Portfolio Monitoring/Allocation by Criteria Portfolio Monitoring/Evaluation by Criteria Portfolio Monitoring/Revisit Schedule Portfolio Monitoring/Security Evaluation Schedule. 3. Enter a Name for the selection. 4. Click Add. 5. Click Save. Adding Securities for Portfolio Monitoring Select on of these four options from the drop-down list 6. Click Close. 32 Version 1.0

34 Creating the Investment Policy Statement Adding selections for Portfolio Securities To create additional portfolio securities for the Proposed Portfolio tab, do the following: 1. From the menu bar, select Resources...Edit. The Manage Selections dialog box appears. 2. In the Tab/Item drop-down field, select Portfolio Monitoring/Portfolio Securities. 3. Enter a Name for the selection. 4. Click Add. 5. Click Save. Adding selections for Portfolio Securities Click Add after typing a name for the new Portfolio Security 6. Click Close. Version