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. 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. 

Asset classes

Our asset allocation reports use the following asset classes:

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

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 (for example, a managed fund or the Separately Managed Account), the product issuer may treat these investments differently and may look through the ETF or hybrid.

In Adviser Online and Macquarie Online, the underlying SMA asset allocations are reflected except for the asset classes listed above. This means it does not have the functionality to look through to the underlying asset classes of ETFs or hybrid securities.

In Wrap Online, 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.