The AdvisorEngine Portfolio Manager supports and services assets in their capacity as Managed or Non-Managed components of portfolios. This includes a tag called Location which indicates the source of the account data in the Portfolio Manager. The Location and the Managed status work together to determine how the asset and positions function in the Portfolio Manager.

Managed and Non-Managed

Managed Assets

Managed assets are those for which the Advisor has investment responsibility. They can be subject to rebalancing, billing, and inclusion in performance measurement and reporting.

Non-Managed Assets

Non-managed assets are excluded from rebalancing, billing, or inclusion in performance measurement. (For rebalancing purposes, non-managed accounts are not sent at all, non-managed positions are sent with an Ignore constraint.) Non-managed assets appear separately from managed assets in the Portfolio Manager, Client Portal, and Report Packager PDFs.

Locations

Location refers to the account’s relationship to the advisor and a general categorization of where it is held. Locations within the Portfolio Manager include:

Direct Custodian Accounts

Direct custodian accounts are managed by the advisor at any of the custodians for which AdvisorEngine has a full-service relationship. Currently this includes Charles Schwab, Fidelity, and Pershing.

Outside Accounts

Outside accounts are those monitored by the advisor which are held at custodians other than the above Direct Custodians.

Outside accounts can be managed and subject to billing, performance measurement, and reporting. They are not subject to rebalancing through AdvisorEngine. Outside accounts designated as Non-Managed are excluded from billing, performance measurement, and reporting.

Data for Outside Accounts can be received through DST Fanmail, Charles Schwab Trust Bank, and the MX data aggregation feature. For MX, accounts only show if the client adds them through the Client Portal.

Held Away Accounts

Held Away accounts are Non-Managed accounts tracked for informational purposes only (such as showing net worth). These are not managed by the advisor and are excluded from billing, performance measurement, and most reporting. Held Away accounts are available only through the MX data aggregation feature and only show if the end-client adds them through the Client Portal.

Account and Position Actions Available

Accounts and Positions are designated as Managed or Non-Managed from the Overview tab of the Manage Clients Dashboard. Note that all of these actions are toggles that can be reversed if needed.

• Direct Custodian Accounts import by default as Managed. Each account and individual positions within any account can be marked as Non-managed. (If an account is set to non-managed, all positions are automatically non-managed as well.)
• Outside Accounts import by default as Managed. Each account and individual positions within any account can be marked as Non-managed. (If an account is set to non-managed, all positions are automatically non-managed as well.)
• Held Away Accounts can be marked as an Outside Managed Account for limited purposes, primarily billing.

Summary Chart

The below chart summarizes the relationship between the Locations and Managed/Non-managed functionality.