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Target Portfolio

How to Create and Assign Targets Quick Guide

Updated over 4 months ago

What is a Target Portfolio

A Target Portfolio is a function within SMArtX that allows the advisor to create a single portfolio of custom weighted holdings, which can include individual securities, model strategies, cash, and other target portfolios to be applied to any number of client accounts

Types of Targets - Account-level, and Enterprise-level

  • Account-level targets are created for and are only applicable to a single account

  • Enterprise-level targets are able to be assigned to any number of accounts

    • Note: If an enterprise-level target is edited, updates will be applied to all accounts assigned to this target and accounts will be sent to the rebalancer

Creating Targets

To create an account-level target,

  1. Find the account from the Account Summary page

  2. Select the Account Details for the account

  3. Click the Create New button on the bottom of the page

To create an enterprise-level target,

  1. Choose Targets from the left navigation menu

  2. Click Add New Target

  3. ✏️Use the pencil icon at the top left to rename the target to the desired name

  4. Add positions to a target

    1. Quick Add - by typing the first few letters of the ticker or model name

  5. Selecting the name from the drop down menu

  6. Click Add to Target

    1. Use Assign Sub Target if needed

Thresholds

Platform-wide default threshold parameters are applied on all newly created Targets and can impact the frequency and tolerance bands of your rebalance activity

Rebalance Thresholds - sets the range of acceptable fluctuation (drift) for a component within a target based on its initial weight

  • Default Rebalance Threshold values on SMArtX are set at +/- 20% of the constituent Target weight

Precision Thresholds - how close to the original target the advisor wants the rebalance to trade to

  • Default Rebalance Precision values on SMArtX are set at +/- 4% of the constituent Target weight

Cash Allocation

Advisors have the ability to hold additional cash within a Target that is intended to be used to pay fees, to fund distributions or as part of the overall asset allocation

💸Targets that maintain a cash weight of at least 1% as a best practice will reduce rebalance frequency and avoid insufficient fund issues with fee payments

Assigning Targets

Account-level targets are assigned automatically once created

Enterprise-level targets must be assigned, to do this:

  1. Navigate to the account page

  2. Select Quick Assign

  3. Choose the target name from the drop down menu and

  4. Select Assign Target

Three pop up windows will appear in a row to confirm the decision

  • Assign targets to this account?

    • Click Yes to continue

    • Click No to cancel

  • Do you want to turn rebalancing on?

    • Click Yes to confirm that SMArtX will monitor the account on a daily basis and notify you to review and rebalance when the account has drifted outside of the Target parameters.

    • Click No to not monitor or notify

  • Do you want to rebalance this account?

    • Click Yes to continue to the rebalancer so that you can submit the account to be rebalanced based on the assigned target.

    • Click No if you do not

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