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Cash Management Application

How do I manage inflows and outflows of funds using the CMA tool?

Updated over 4 months ago

What is the Cash Management Application?

The SMArtX Cash Management Application (CMA) is designed to give the advisor a tool to manage inflows and outflows of funds to meet their client’s cash needs.

Users have the choice of several different trading methods to select from within the tool to instruct how funds need to be raised or deployed for each account. These instructions can be configured to be one time events or set up as recurring schedules to address long term investment objectives.

By using the CMA tool, the SMArtX platform introduces a new sleeve called the Account Funding Sleeve where advisors will see their CMA cash activity. The Funding Sleeve will “protect” funds that are explicitly instructed to be used for outflows from being inadvertently reinvested while it will hold excess inflow funds from overinvesting incorrectly.

Creating a CMA

  • CMA transactions are created as one time events (today or future dated) or recurring schedules from the Account Details screen within the CMA

    • Recurring schedules can be set with various preset frequencies or with a custom frequency

  • The Transaction Details screen will allow an Advisor to direct the method of transactions, the type of transaction and the transaction amount for a CMA entry

    • Method of Transactions available are:

      • Pro Rata - invests/raises proportionally based on the current allocation
        weights

      • Rebalancer - uses the Target weights assigned to the account to
        invest/raise the desired cash by rebalancing the account with this
        transaction taken into consideration

        Only to be used where a target is already assigned to the
        account. If this method is used without a target, the account will be rebalanced to 100% cash

      • Equal Weight - invests/raises across all sleeves equally

      • Custom - invests/raises funds, per asset, as defined by the advisor

    • Type of Transaction available are:

      • Deposit - schedule used to invest cash that has been added to the
        custodial account

      • Withdrawal - schedule used to instruct the system to raise cash intended to be withdrawn at the custodian after the transactions have settled

    • Transaction Amount refers to the dollar value that the platform should be
      investing/raising

    • The CMA Transaction Details screen will provide the user with a list of suggested transactions based on the inputs completed above

  • The subsequent Preview screen will recap the submission for the advisor to review prior to the actual creation of the CMA schedule

    • If the first transaction date is the current date, the system will begin preparing transactions upon the creation of the CMA schedule

Viewing Active CMA Schedules

  • Users will be able to view all Active CMA schedules when initially navigating to the CMA tool

  • Active CMA schedules can be filtered by various attributes to aid in any research

  • Advisors can see the current status of a CMA schedule in the Status column which have available values of:

    • Pending - awaiting the scheduled transaction date to be reached

    • Processing - transaction date has been reached and transactions have been
      generated

    • Canceled - user has canceled the CMA schedule

    • Complete - transaction date has been reached and transactions have been
      executed

Canceling a CMA Schedule

  • Users can cancel a CMA schedule at any time which will terminate all future dated activity

  • CMA schedules planned for the current day CANNOT be canceled by an advisor

❗️ To cancel a same day transaction that is in process, please contact the Client Support team immediately by starting a chat in the Advisor Portal

Funding Sleeve Screen

  • The SMArtX Funding Sleeve screen gives users transparency into all accounts with a

  • Funding sleeve where the balance is not $0

  • This screen is found on the platform by navigating to the left hand menu, hovering over Accounts and selecting Funding

  • Users can review the Funding Sleeve screen to analyze whether the Funding sleeve balance is in preparation for an upcoming transaction or if it is residual and needs to be reinvested

Moving Excess Cash In/Out of the Funding Sleeve

  • If an account has excess cash in the Funding sleeve (less cash withdrawn at the
    custodian than raised by trades, or more cash deposited than scheduled to be invested), advisors can enter a Custom deposit CMA to move those funds to Available Funds or they can select any other transaction method to invest the cash per the trading logic stated for each method

  • If an account has excess cash in Available Funds and the advisor wants to move
    some/all of that cash balance to the Funding Sleeve, a Custom withdrawal CMA to move the desired amount can be entered

Identifying and Managing Failed CMA transactions

  • Advisors use the History tab of the CMA tool to review CMA activity on SMArtX for all prior days through current day and can be filtered by various attributes as needed

  • The Status column will indicate whether the schedule has been successfully executed as indicated by the following values:

    • Processing - the system is in the process of generating trades

    • Reprocessing - the initial attempt of generating trades failed and the system is attempting to try again

    • Working - transactions have been submitted but are not complete

    • Completed - transactions have been completed and cash is available

    • Failed - the schedule was not able to be completed and needs to be reviewed

    • Canceled - the schedule has been canceled

Key Tips For Using the SMArtX CMA Tool

  • The SMArtX Rebalancer will not invest cash in a Funding Sleeve

  • Recurring schedules must have a first transaction date that is not a holiday/weekend however subsequent transaction dates will be adjusted accordingly

  • Future deposits that land on a holiday/weekend will be processed on the following business day from the scheduled event

  • Future withdrawals that land on a holiday/weekend will be processed on the prior
    business day from the scheduled event

  • Pro Rata CMAs will not initiate any transactions if the account is 100% cash at the time of the CMA event

  • Rebalance transaction type is typically most common when addressing a negative APM balance (only to be used if the account has a Target assigned)

  • Having multiple CMA schedules for a single account on the same day will create a collision causing one schedule to fail

  • When an account has a future dated withdrawal schedule, any withdrawals received for that account will get processed to the Funding sleeve

  • When an account has a future dated deposit schedule, any deposit received for that account will get processed to the Funding sleeve

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