SD-05.7 — Model Portfolio & Sleeve Management
Business Domain: BD-05 Portfolio Management (Front office) · Applies: PUB
Purpose
Constructs, maintains and delivers model portfolios and strategy sleeves replicated across many accounts — the “construct once, deliver to many” capability. Where SD-05.1 constructs a portfolio, this Service Domain constructs a model — a reusable target — and propagates it to a roster of separately managed and unified managed accounts, managing the drift, the per-account customisation and the dispersion that propagation creates. It is the signature capability of the asset manager and the wealth manager; it is dormant for an institution that runs only its own portfolios.
Service Operations
- Construct the model portfolio — build the reusable model or strategist portfolio.
- Maintain and version the model — run the ongoing model updates and model rebalancing, with version control.
- Deliver the model — publish the model to the platforms and advisers that consume it.
- Manage sleeves — manage the discrete strategy and asset-class sleeves within a multi-strategy or unified managed account, and the multi-portfolio optimisation across them.
- Replicate across accounts — propagate the model into the account roster, generate the per-account trade lists, and manage account dispersion.
- Apply per-account customisation — the tax overlay, restrictions and transitions each account requires.
Inputs and outputs
- Inputs: the model definition; the account roster and each account’s constraints and tax lots; the sleeve and unified-managed-account structure.
- Outputs: the delivered model, the per-account trade lists, the sleeve allocations and the dispersion reports — feeding BD-06.
Entities
- Consumes: Portfolio / Mandate (E-03) — the model and each replicated account; Holding / Position (E-04,
book = ibor), Instrument / Asset (E-02). - Owns: none — the model portfolio is a Portfolio / Mandate (E-03) of model type.
Standards
- No external standard governs model-portfolio management. The model-delivery and unified-managed-account patterns are the industry conventions.
Open extensions
- The boundary with SD-05.1 — SD-05.1 constructs a portfolio; SD-05.7 constructs a model and propagates it to many.
- Whether the model portfolio warrants explicit entity treatment distinct from a portfolio.