Before any rebalancing trade reaches a desk, this agent checks it against mandate limits, restricted lists, and liquidity thresholds, and flags anything that needs a manual sign-off.
Previously, concentration and restricted-list breaches were caught in end-of-day reconciliation. The agent runs the same checks pre-trade, so a flagged order never reaches the desk.
Every proposed trade is run through four checks before it is released for execution.
| Check | Rule | Action on breach |
|---|---|---|
| Concentration limit | No single issuer above 5% of NAV post-trade | Block and route to PM for sizing |
| Restricted list | Trade instrument not on the current restricted or watch list | Block and notify compliance |
| Liquidity threshold | Position sized within 3 days of average daily volume at target participation rate | Flag for review, does not block |
| Mandate eligibility | Instrument type and geography permitted under the fund's IMA | Block and route to PM |
A live read of the agent's output ahead of the quarterly rebalance for the Meridian Balanced Growth fund.
Tolerance band as agreed in the IMA
| Asset class | Current | Target | Drift | Status | Weight |
|---|---|---|---|---|---|
| Global equities | 42.3% | 40.0% | +2.3% | Overweight | |
| Investment grade credit | 24.1% | 25.0% | -0.9% | In band | |
| Private markets | 18.6% | 20.0% | -1.4% | In band | |
| Cash | 8.2% | 10.0% | -1.8% | Underweight | |
| Alternatives | 6.8% | 5.0% | +1.8% | Overweight |
Passed all checks unless noted
MSCI World ETF
Passed all checks
$4.2m
22.1% → 20.0%
Sterling IG credit fund
Passed all checks
$2.8m
23.4% → 25.0%
Emerging market corp bond ETF
Flagged: pushes issuer exposure above 5% limit
$1.1m
4.6% → 5.4%
Private equity co-invest
Within tolerance; no trade required
-
One trade in this batch requires a portfolio manager's sign-off before release.
The proposed $1.1m buy would take issuer exposure to 5.4% of NAV, above the 5% mandate limit. The agent blocked auto-execution and routed the order to the PM for resizing.
Reduce the buy to keep post-trade issuer exposure at or below 5.0%, then release for execution. All other trades in this batch are cleared.