CircleBlack tracks Drift on accounts with assigned models and lets you set the percentage that security allocations will be compared against to determine if they have drifted too far from their model allocations. You can receive both Drift Wealth Alerts within your Advisor dashboard and receive Drift email notifications.
At a high-level, drift is defined by when an account’s current security allocations differ from an assigned model’s security allocations.
Drift can occur in the following ways:
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Market fluctuations
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Cash flows into or out of the account
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Buys/Sells within an account
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Changes to a model (both provider models and advisor-created models)
Drift Threshold
The drift threshold is a preference that is used to determine whether an account’s security allocation is drifted from or ‘on target’ with an assigned model’s security allocation.
The threshold is set as an Advisor-level preference and applies across all accounts for an Advisor.
Drift Status
Accounts have a drift status and an account can only have one drift status at any given time. Accounts that are not able to be rebalanced should have a status of "Not Applicable" since they will never be rebalanced. The drift status of an account is determined based on the following criteria:
| Drift Status | Status Criteria |
|---|---|
| On Target | Account's security allocations are within the threshold % of the models' security allocations (see Drift Calculation section below) AND the account does not meet the criteria for any of the above statuses AND all positions in the account are mapped to securities |
| Drifted | Account's security allocations are outside the threshold % of the model's security allocations (see Drift Calculation section below) AND the account does not meet the criteria for any of the above statuses AND all positions in the account are mapped to securities |
| Recent Request | The most recent trading action in this account is a REBALANCE/TRADE REQUEST that has been submitted within the last 1 business day AND there has not been a change in which Models are assigned to the account since that request AND all positions in the account are mapped to securities |
| Recent Proposal | The most recent trading action in this account is a PROPOSAL that has been generated within the last 7 days AND there has not been a change in which Models are assigned to the account since that proposal AND all positions in the account are mapped to securities |
| Data Issues | The account is linked to Models and there is at least one position in the account that is not mapped to a security and has a market value > $0 |
| No Model | No Models are currently assigned to this account. |
| Not Applicable | An account is not able to be rebalanced. |
The drift status for an account is queued to update automatically and within a few minutes (but will not be instant):
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Whenever the security allocations in an account change
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Whenever the model allocations for the model assigned to an account change
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Whenever the Cash Reserve for an account changes
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Whenever there is a change in which model is assigned to an account (including a model being removed from an account)
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Whenever the drift threshold is changed for the advisor who assigned the model to the account
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Whenever the user rebalances an account
When the drift status is changed on an account and the new status is Drifted, set the account to be Newly Drifted. When the drift status is changed on an account and the new status is not Drifted, set the account to not be Newly Drifted.