Advisors who maintain roughly equal portfolio allocation across multiple client accounts: How do you do it? I'm trying to use the NetLiq allocation but it doesn't seem smart enough to handle the case when a single client adds funds to their account. It also doesn't seem like NetLiq is concerned with overall portfolio allocation so there could be a tendency for client portfolio weights to drift apart over time. How have you dealt with these issues?
One day, you're going to have to defend the decision you make right now in court. Your allocation of client money is *your* business, not IB's. Roll your own -- right away, so's you can defend every decimal point. DOCUMENT it!! Or stop what you're only pretending to do.
I'm not an expert on all of the FA tools but have you been using these features - you can automate or manually handle via spreadsheet Links: Videos on how to allocate and setup account groups and allocation profiles (may need to remove the .hk if in the states) https://www.interactivebrokers.com.hk/en/index.php?f=14082 (click on institutions tab and then advisor allocations). There are also some instructive videos on re-balancing under the advisor tab as well) allocations, user guide: https://www.interactivebrokers.com....financialadvisors/set_default_allocations.htm And to set up account groups: https://www.interactivebrokers.com....ate_an_account_group_for_share_allocation.htm Account Groups Account Groups offer traders a way to create a group of accounts and apply a single allocation method to all accounts in the group. IBKR supports four different allocation methods for an Account Group: Net Liquidation - Allocate shares based on ratios derived from each account's Net Liquidation Value. Available Equity - Allocate shares based on ratios derived from each account's Available Equity. Percentage Change of Existing Position - Increase or decrease positions for client accounts by a specified percentage. When you use this method, the system calculates the order size based on the specified percentage. Equal Quantity - Allocate shares equally to all accounts in the group