How do you set target portfolios for each client in Fabric?

Mckenna Gray

November 10, 2023 14:24 Edited

There are typically a few different ways to set up target portfolios in Fabric, depending on your goal. 

1. Sleeves

Each client typically holds different asset classes within each portfolio. For example, Dependent 1 Trust might hold 60% equity, 20% fixed income, 15% alternatives, and 5% cash where the Head of the Household is retiring and moving more into fixed income, equity and cash. Firms can create sleeves in Fabric for each asset class used across their book. This would look like creating a 100% equity model, 100% fixed income model, etc. that can be assigned to clients based on their current or target weighting. 

2. Custom Targets made of assets and models

Typically, there are “house view models” for each firm. These can be used as a starting point for each client and can then be customized swapping funds in the model or adding assets based on the advisor's view. This syncs the “Firm's View” and the “Advisor's View” creating customized target portfolios for each client. 

Setting up target portfolios made of models allows for model updates to be made and the target will be changed across each client that holds that model in their target.

 

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  Customer

  November 10, 2023 14:30

  With the Fabric <> Black Diamond integration, Fabric can pull in min, target and max allocations for sub-asset classes. We use Fabric to 1. understand the data in Black Diamond and refine target allocations with clients. and 2. create sleeves to ensure our clients are on tracking with their target allocations. 

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