The Rebalance dashboard has a cash equitisation utility that allows you to increase your holdings exposure while maintaining your cash balance.
To do this, you must create a reference portfolio model containing one or more derivatives instruments, for example futures. You can add this portfolio mapping to your Rebalance dashboard to specify a particular holdings exposure target should be met by generating orders for the derivatives in your reference portfolio.
Step 1: Create a reference portfolio
Sign in to the LUSID web app with suitable user credentials.
Navigate to Data Management > Portfolios from the top left menu.
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Select Create portfolio (top right).
Choose Reference as the portfolio Type and specify a Scope and Code that uniquely identifies the reference portfolio, a Display Name, and an Effective date.
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Once created, locate the portfolio on the dashboard and select the Menu icon > Create constituent.
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For each constituent, select an instrument and provide a Weight and Currency.
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Click Save to create your constituents.
Step 2: Add portfolio mapping to Rebalance dashboard
Navigate to Dashboards > Rebalance from the top left menu and select your Portfolio / Group as usual.
Click Add mapping and choose Create new mapping.
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Specify a Display Name for the mapping and choose the mapping Recipe, Rebalance Configuration and Currency. Note this recipe overrides any existing recipe chosen in the Rebalance dashboard.
Navigate to the Cash Equitisation tab, click Add, and select your reference portfolio.
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Enter a value for your equitisation Target Exposure and Minimum Exposure.
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Click Save to finish your portfolio mapping.
Step 3: Run cash equitisation
On your Rebalance dashboard, choose one or more rows and select the Options icon > Control panel.
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Choose a Weighting of Model and a Relationship type of Cash Equitisation.
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After selecting Run, LUSID populates the Rebalance dashboard with your targets. The Resulting Order Quantity column displays the required number of futures (from the specified reference portfolio mapping) to bring the exposure percentage to the specified target.
Tip
Click on the image below to enlarge it.
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At this point you can choose to make further adjustments to your targets, such as manually inputting figures to particular cells. When you’re ready, select Generate orders and have LUSID create the orders necessary for cash equitisation.
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