Overview
SMArtX's Transition Analysis Tool helps you move an account from its current holdings into a new target allocation in a tax-aware and controlled way.
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Read Me: A Full Walkthrough Guide
The goal of the Transition Analysis Tool is to balance tax impact, market exposure, and your client timeline in a strategic way.
Rather than forcing an immediate transition, the tool allows you to model tradeoffs between market risk, tax realization, and timing, so you can choose the approach that best fits the client’s situation.
The tool provides you the workflow within. Click through to view the details in each step.
Step 1 - Account Selection
The tool can be used for accounts that are already on SMArtX, as well as accounts that are not yet on that platform.
From the Home Dashboard → Left Navigation → Transitions option → Select Analysis Tool
Select On-Platform or Off-Platform
Off-Platform option to upload holding and cost basis information
Use provided template
Confirm holdings and cost basis
Upload tax lot CSV
On-Platform option if account exists in SMArtX
Search by name or account number
Select account
Step 2 - Target Weights
Examine existing holdings in your account and compare them to models on the platform. Assign weights to each model or holding so the total equals 100% of tradable assets.
Optional: Help Me Find Models
Use the Help Me Find Models feature to compare existing holdings to available SMArtX strategies, helping reduce turnover and tax realization. Use this tool if you’d like to:
Examine overlap between current holdings and models
Identify compatible strategies
Details around using this tool can be found HERE.
Use Search
Use the search box to find a specific ticker, model, or target name to add.
Define Target Weights
Assign weights to each model or holding, making sure the total adds up to 100% of tradable assets.
Review Minimum Investment
The system will automatically display any minimum investment requirements for the selected target.
Confirm feasibility of the allocation
Select Continue
Step 3 - Tax Budget & Transition Scheduler
Set Your Capital Gains Budget
This is where you define how much capital gain you’re willing to realize as part of the transition.
Select a budget between 0%–100% of full gain
Or enter a custom tax information
Transition Scheduler ON or OFF
You can choose to automate the transition over time or manage it manually.
Scheduler ON
System looks for opportunities based on schedule
Attempts to:
Harvest losses
Offset gains
Continues until transition is complete
Scheduler OFF
Advisor manually reviews the sleeve
Advisor decides when to move and sell positions
Step 4 - Allocate Review & Submit
The Allocation Summary shows the expected impact of the transition before it’s executed.
Review Includes:
Proposed realized gains and losses
Updated sleeve structure
Target allocation breakdown
Select pencil icon to Edit if adjustments are needed
Otherwise, click Continue at the bottom of the page
Step 5 - Submit
This final review ensures you’re comfortable with the tax impact, allocation, and transition structure. If all is correct, submit the transition.
Transition Management
Once submitted, transitions are actively managed through the Transition sleeve.
From the Home Dashboard → Left Navigation → Transitions option → Select Manage Transitions
Select account name
Opens the Allocation Holdings tab within the Transition sleeve (Account Details)
Actions Available
Update your capital gains budget at any time throughout the year
Accelerate your transition
Download an On-Demand Analysis to view the current tax impact of positions held in the sleeve
In Summary
Transition Analysis quantifies what it costs—and what risk you accept—to move an account from legacy holdings into a new model.
SMArtX’s Transition Analysis Tool integrates seamlessly with the rest of the platform, allowing you to move assets thoughtfully, transparently, and tax-efficiently—without disrupting the broader portfolio management workflow.