As per the recent guidelines, all smallcases should now have a research report which covers all constituents and their respective rationales for being part of the smallcase. The report will first be created at the point of publishing of smallcase and henceforth get updated at every rebalance.
The report will be called “Model Portfolio Report” for smallcases created by RAs, while it will be called “Portfolio Report” for smallcases created by IAs
The report will replace the existing “Rebalance Report” which is currently created at every rebalance
The report will contain constituent wise commentary which describes the rationale for the constituent being present in the smallcase
If any constituent is added/removed or undergoes weightage change in a rebalance, then the report will also cover such constituents along with relevant reasons for the same
For RAs, adding constituent wise rationale is now mandatory and required for publishing a smallcase as well as rebalancing
For IAs, adding constituent wise rationale is optional. The portfolio report will contain all other information and rationales for any constituents if added
A sample report can be viewed here: https://drive.google.com/file/d/1msP4mBYTxAozQgpsVgK0DJkvuhRGOIfA/view?usp=sharing
Implementation Plan for New smallcases:
Starting 24th January ‘25, any new smallcases which are published will also have a model portfolio report/portfolio report with all details
Subscribers to these new smallcases will be able to access the model portfolio report from 13th February ‘25. The subscribers can access the report in the subscription confirmation email notification, as well as on smallcase app and website
Any rebalances pushed for these smallcases will generate an updated report - the users will get access to the report in the rebalance email notification, in addition to on smallcase app and website
The report will be a password protected PDF and password details will be shared to users in both email as well as on the app and website. This is to prevent any unauthorised access to the report
Implementation Plan for Existing smallcases:
Starting 24th January ‘25, any new rebalances pushed for existing smallcases will generate a report will all updated details
Subscribers will get access to the report from 13th February ‘25 once they have subscribed to the smallcase. The subscribers can access the report in the rebalance email notification, subscription confirmation/renewal email notification, as well as on the smallcase app and website
The report will be a password protected PDF and password details will be shared to users in both email as well as on the app and website. This is to prevent any unauthorised access to the report
Additional Points:
All rebalances before 24th January will continue to function as is
We strongly advise to push a rebalance before 30th June 2025, since the model portfolio report/portfolio report for existing smallcases will only be generated upon a rebalance
In case you wish to continue with the same portfolio composition, you can simply add a “Skip Rebalance”. This will also generate the report and portfolio composition will remain the same
Changes to Rebalance flows
The model portfolio report/portfolio report will now contain constituent-wise rationale for all constituents part of the smallcase.
Given below are instructions on how to add rationales while rebalancing.
You can also refer to the following video tutorial of the same: Video
STEP 1: Click on Add rebalance
To add rebalance for any smallcase, go to Rebalances -> Upcoming -> “Add Rebalance” or go to My smallcases -> Manage -> Rebalance -> “Add Rebalance”
STEP 2: Download current composition
On the rebalance screen, you can use the “Download constituents” option to download a CSV file which contains the current composition’s:
constituents,
their weightages,
segments
rationales
STEP 3: Update composition and add rationale
You can make changes to the same CSV and add rationales for each constituent in the last column
On the publisher platform, you can now upload the same CSV in which you have made the changes and added rationales.
Once uploaded, the new composition and rationales will start reflecting on the screen
STEP 4: View or Edit rationales (if required)
Since the CSV upload only allows rationales to be added in plain text form, you can use the “View/Edit” option to provided to add formatting if required
Upon clicking on “View/Edit”, a modal will open up showcasing the rationale added via CSV. This can now be formatted and supporting images can also be added if required
If any changes are made, you can click on Save changes to save the updated rationale and go back to the main screen
STEP 5: Add rationales for removed constituents
The model portfolio report will also cover any removed constituents and the rationale for removal
For these constituents, you can add the rationales by clicking on “Add” option present against the constituent
ℹ️ NOTE: Post the first rebalance pushed after 24 January, 2025, for removed constituents the current rationale can be viewed by clicking on View/Edit. For any removed constituent, it is mandatory (for RAs) to update the rationale to proceed adding a rebalance
STEP 6: Add or Skip rebalance
In case you are continuing with the current composition as is, the “Skip rebalance” button will be enabled towards the right. This will ensure that the model portfolio report will now have all constituent rationales
In case you have updated the composition, the “Add rebalance” button will be enabled on the right. The rebalance flow remains the same post this
STEP 7: Preview the Model Portfolio Report/Portfolio Report
Once a rebalance has been added, you can now preview the report by clicking on the “Preview Report” option present in Rebalances -> Added
In case you wish to make any changes to the rebalance, you can edit the rebalance update by clicking on the 3 dots icon towards the right of the rebalance
ℹ️ NOTE:
The preview is merely a support tool to showcase how the model portfolio report will look post rebalance. Calculated values such as returns, CAGR, volatility etc. present in the report will be updated once the rebalance has been pushed
STEP 8: See reports against each rebalance
Once a rebalance is pushed, or initially at the point of publishing of a smallcase, the report for the same can be viewed from Rebalances -> Pushed
To view the reports for any smallcase, expand the smallcase details from this window. A column providing all reports against each rebalance will be available
Adding rationales for new smallcases
In case any new smallcases are being created, the rationales can be added in STEP 2. The flow for adding rationales is the same as covered above.
While it is not mandatory to add rationales to save the smallcase as draft, it will be mandatory for RAs to have added the rationales in case the smallcase is being published.
Once a smallcase is saved as draft and all necessary details have been added, the model portfolio/portfolio report can be previewed. To preview the report, simply click on the “Preview Research Report” option from My smallcases -> Draft -> Click on the 3 dots icon at the right -> Preview Research Report
