Ad-hoc rebalance This user guide will lead you through the steps involved in ad-hoc rebalancing. Please read this guide in conjunction with the ‘important notes’ document, as this contains important information with which you should be familiar.

The ‘Ad-hoc rebalance’ allows you to compare a current client account against a model to which it is attached, and to buy/sell securities and retain cash (if required) so that the client account becomes a replica of the model (within the tolerances you have set for it). Alternatively, you can choose to rebalance to a different model than the one to which the account is currently attached.

It is also possible to perform an ad-hoc rebalance for either a single client account or across multiple client accounts.

An ad-hoc rebalance is a ‘two-phase’ order – in other words, one or more securities are sold and the sale proceeds are then used to buy other securities. As stock markets can be unpredictable and volatile and there may not be a ready market for the security you are selling, the sale may be delayed. As a consequence, the prices of the securities being bought may

have changed by the time the orders to buy are executed. This is an inherent risk of an ad-hoc rebalance and accordingly we accept no responsibility for fluctuations in price.

Please read this guide in conjunction with the ‘Important notes’ document for more information on how portfolio switching and two-phase orders are carried out.

You cannot specify the number of shares/units to buy in a given stock, and you cannot choose to raise a specific cash amount from the sale of a given stock.

Step 1 – select accountsOnce logged into the Funds & Shares Service dealing area, click on the ‘Models & bulk deals’ tab in the screen top navigation and select ‘Ad-hoc rebalance’ from the left-hand navigation.

For a client to be listed on the ‘Select accounts’ page, they must be linked to your SCA number and have available assets that can be rebalanced against another model. Clients whose portfolio is entirely in cash would need to use the ‘Invest into models’ option.

Clicking ‘Select’ ticks all your clients for inclusion in the instruction. Alternatively, you can select individual clients by using the tick boxes that appear next to their account numbers.

Bulk Dealing and Model Portfolio Service

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The name of the model shown is that which is attached to the client’s account.

If you want to attach a different model to a client, click the red edit triangle next to the model name and choose the one you require from the dropdown list. You can then rebalance that client to the new model using the ad-hoc rebalance tool.

You can select the initial adviser charge percentage you want to take by using the red edit triangle in the ‘Adviser’s charge value’ column. You will need to enter the gross amount including VAT - so if your charge is 1% plus VAT you would need to enter 1.2%. The initial charge automatically defaults to 0%.

The initial adviser charge entered will apply to all fund purchases – it cannot apply only to some deals for that client. Two different clients using the same model can have different initial charges applied. Also, one client with two different accounts (e.g. a SIPP and an ISA) using the same model can have a different initial adviser charge applied to each account.

In the ‘Select accounts’ page, you can click on the client name (which is shown in red) and this will show a view comparing the existing portfolio to the model portfolio.

Clicking ‘Select account’ will add the account to the ad-hoc rebalance if it is not already included.

Clicking ‘Close’ will return you to the previous view without making any changes.

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Once you are happy with the account selections and the chosen initial adviser charge, click ‘Next’.

The order will then be validated (as shown below).

Clients who have been successfully validated are shown in grey. Clients who require further editing are shown in pink. Clicking ‘Errors only’ filters the list and shows the clients who require further editing before their order is processed. You can hover over the red ‘i’ icon in the ‘Error’ column to display information regarding the failed validation.

If you choose to move away from this page before validation is complete, you can re-access the instruction via the ‘Draft instructions’ page.

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Step 2 – review ordersOnce validation is complete, you can review your orders.

This screen shows you the securities involved in the rebalance, and whether they are being bought or sold.

You can also delete client orders from the instruction and edit them using the ‘Edit’ and ‘Delete’ buttons to the left of the client’s account number.

For a sell instruction, you can edit the ‘sell quantity’ (as shown below).

For a buy instruction, you can edit the ‘invest percentage’ (as shown below).

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If you edit the order, clicking ‘Submit’ allows it to be re-validated. Clicking ‘Cancel’ simply returns you to the ‘Review orders’ page. This features a scroll bar underneath the order list, which you can use to see all the details of the order.

By scrolling to the right-hand side of the page you will see:

‘Sell quantity’ or ‘Invest percentage’ – depending on whether the rebalance is a buy or sell.

‘Dealing commission’ – our dealing commission and other charges (if applicable).

‘Adviser charge type’ (if applicable) – as a percentage.

‘Adviser charge value’ (if applicable) – as the percentage you selected in step 1.

‘Total’ – the estimated proceeds for the order.

‘Model’ – the name of the model being rebalanced against.

Once all the client orders are validated and appear in grey, you can submit the order using the ‘Submit’ button.

Please be aware that the ‘invest’ part of the ad hoc rebalance cannot begin until every ‘sell’ order within the work set is complete.

This creates two possible issues, as the clients’ money may be ‘out of the market’ for some time, depending upon the nature of the security being sold. The price of the ‘invest’ security may change by the time this phase of the order can begin.

Once ‘Submit’ is clicked, the order cannot be changed. The ‘invest’ element of the order cannot be cancelled once the ‘sell’ phase of the order is underway.

Please read this guide in conjunction with the ‘Important notes’ document for more information on how portfolio switching and two-phase orders are carried out.

Step 3 – confirmationOn the ‘Confirmation’ page you will be given a reference number for the ad-hoc rebalance.

You can then track the progress of your order using the links to the ‘Active bulk orders’ and ‘Executed bulk orders’ pages.

For further information see our guides relating to:

• Bulk invest

• Bulk sell

• Portfolio switching

• Creating a funds model

• Link models

• Invest into models

• Scheduled rebalance

• Draft instructions, active and executed bulk orders

• Important notes

If you have any questions about the service, please do not hesitate to call our Dealing Services Team on 0345 37 33 473.

AJBIC/UG/MBD/AhR/20171227

AJ Bell Management Limited (company number 03948391), AJ Bell Securities Limited (company number 02723420) and AJ Bell Asset Management Limited (company number 09742568) are authorised and regulated by the Financial Conduct Authority.

All companies are registered in England and Wales at 4 Exchange Quay, Salford Quays, Manchester M5 3EE. See website for full details.