This glossary is designed to help you navigate the SMArtX platform by providing clear definitions of key terms, concepts, and features. Terms are organized alphabetically.

Account

A client account on the SMArtX platform. Accounts hold all investment allocations (sleeves) and are linked to your custodial account at your broker. SMArtX keeps its records synchronized with custodial data.

Account Group

A grouping of one or more client accounts that share a common tax goal within the Tax Harvester. Wash-sale exclusions apply across the entire Account Group — if a security is sold in one account, all accounts in the group are restricted from repurchasing that security for 30 days.

Account Types

SMArtX supports a wide range of account types, including: Individual and Joint accounts, Traditional, Roth, SEP, SIMPLE, and Rollover IRAs, Trust accounts, Custodial accounts (UTMA/UGMA), Entity and organization accounts, SMA accounts, and HSA accounts (depending on custodian support).

Account-Level Target

A Target Portfolio built for and applied to a single specific account only. Unlike Enterprise-level Targets, Account-level Targets cannot be shared or assigned to other accounts. See also: Target Portfolio, Enterprise-Level Target.

Advisor Portal

The web-based interface advisors use to view, manage, and rebalance client accounts on the SMArtX platform.

Allocation (Sleeve)

A separately managed portion of an account, also called a sleeve. Each allocation can follow a different investment strategy, track its own performance, and be traded independently. Common sleeve types include the Managed Portfolio (APM), Model sleeves, Transition, Protected, and Funding sleeves.

Allocation Change Request (ACR)

A transaction submitted by an advisor to add, remove, or modify funds in a specific model sleeve within a Unified Managed Account (UMA). There are three types: Open (creates a new model sleeve), Modify (adjusts funding in an existing sleeve), and Close (removes a model sleeve and returns funds to the Managed Portfolio sleeve). Approved ACRs automatically add the account to a trade build.

APM Sleeve (Managed Portfolio / Default Sleeve)

The Advisor as Portfolio Manager sleeve, also called the Managed Portfolio or default sleeve. This is where advisors can hold and trade individual securities directly. When funds are added to or removed from model sleeves, they flow through this sleeve.

Assets Under Management (AUM)

The total market value of all investments managed on the SMArtX platform for your clients.

Benchmark

An index used to compare the performance of an investment strategy or portfolio. In the Proposal Tool, advisors can select from multiple benchmarks (beyond the S&P 500) to compare strategies side-by-side.

Build Event (Trade Build)

The process that generates executable trades for one or more accounts. A trade build clears any pending unsubmitted trades and produces fresh trades based on the latest portfolio data, models, and outstanding requests. Builds can be triggered for a single account, a list of accounts, or an entire brokerage block.

Cash Management Application (CMA)

The SMArtX tool used to process client deposits and withdrawals. The CMA handles both one-time and recurring cash flows and offers flexible distribution methods: Rebalancer (aligns with target weights), Pro Rata (proportional to current holdings), Equal Weight (evenly distributed), or Custom (specific dollar amounts). Cash raised through CMA is routed to the Funding Sleeve.

Compliance Engine

An automated rule-checking system that reviews trades before execution. Trades that violate a rule — such as a trading restriction, short-sell limit, or model turned off for trading — are held in a "Held" status on the Trade Monitor and require manual review and approval before they can be released.

Correlation Matrix

A performance statistics view available in the Proposal Tool that shows how the returns of different strategies in a portfolio move in relation to each other. Used to evaluate diversification within a proposed allocation.

Custodian

The brokerage or financial institution that holds and maintains your clients' assets (e.g., Schwab, Fidelity, Pershing). SMArtX integrates with custodians to keep account data synchronized and to send trades for execution.

Do Not Sell / Do Not Hold / Do Not Trade

Trade restriction behaviors that prevent specific actions on a security within an account. Do Not Sell prevents a security from being sold. Do Not Hold blocks the system from opening or increasing a position. Do Not Trade prevents both buying and selling. These are configured through the Trade Restrictions tool.

Dollar-Cost Averaging

An investment strategy where a fixed amount is invested into an account on a regular schedule, regardless of market conditions. In SMArtX, this can be automated by creating a recurring deposit schedule in the Cash Management Application (CMA).

Dynamic Model

An investment model that adjusts with the market. The model manager sets target percentage weights, and the platform builds a portfolio based on a normalized equity value. As market prices move, positions drift from their targets, and the model manager can update weights to bring the portfolio back to desired levels.

Enterprise-Level Target

A Target Portfolio that can be applied across multiple client accounts simultaneously. Any edits to an Enterprise-level Target automatically update all linked accounts and prompt rebalancing. Recommended over Account-level Targets for scalability. See also: Target Portfolio, Account-Level Target.

Equivalent Securities

A Trade Restriction that treats multiple securities as functionally interchangeable for trade-building purposes. Common uses include multiple share classes of the same fund or funds tracking the same index. The system uses the group's behavior settings to determine which security to buy or sell, reducing unnecessary turnover while maintaining similar investment exposure.

Exclusion

A Trade Restriction that prevents a security from being purchased or held in an account. When creating an exclusion, advisors can choose what happens to any existing shares (hold, liquidate immediately, or liquidate as needed) and how to handle the freed allocation (hold as cash or redistribute to remaining holdings).

Funding Sleeve

A designated sleeve where cash from deposits and withdrawals is held by the Cash Management Application. Cash in the Funding Sleeve is uninvestable — it is not impacted by target weights, rebalancing, or model trading activity — and serves as a buffer until it is intentionally reinvested.

GIPS Performance (Global Investment Performance Standards)

A set of voluntary global standards for investment performance reporting, created by the CFA Institute. SMArtX supports GIPS-compliant performance reporting for model managers.

Harvest Rule

A set of criteria defined in the Tax Harvester that the system uses to identify tax-loss harvesting opportunities within an Account Group. Rules specify minimum gain and/or loss thresholds, whether to evaluate at the position or lot level, a default replacement security (optional), and a schedule for automated harvesting.

Help Me Find Models

A SMArtX tool that analyzes a client's existing holdings and identifies investment models with the most overlap, helping minimize unnecessary trades and tax impacts during onboarding or account restructuring.

High-Touch Execution (HTE)

A trade routing option on the Trade Desk that sends a trade to a staged blotter for manual review before it is sent to the custodian. This allows traders to modify order details (e.g., limit orders, market not held) before execution, as opposed to Straight-Through Processing (STP) which sends the trade directly.

Historical Returns

The monthly gross performance figures for a model prior to it being managed on the SMArtX platform. These are added by model managers in the Manager Portal.

Investment Products

The section of the SMArtX platform where advisors can research, filter, and compare third-party investment model strategies. Each strategy has a Model Microsite with detailed performance and disclosure information to support portfolio construction decisions.

Lot (Tax Lot)

The individual purchase record for a security, capturing the acquisition date and price paid. Tracking tax lots is critical because selling different lots of the same security can result in very different tax outcomes (e.g., short-term vs. long-term capital gains). In the Tax Harvester, lot-level harvesting allows advisors to target specific lots for a harvest rather than the full position.

Manager Portal

The web-based interface used by investment managers (model providers) to view model information, upload historical returns, edit portfolios, review trade history, and monitor assets under management.

Manager-Traded Sleeves (MTS)

A sleeve type, also labeled "UMA Eligible SMA" on the platform, that allows a third-party investment manager to trade a portion of a client's UMA account off-platform. The manager receives daily position and instruction files from SMArtX, executes block trades with their own broker, and returns post-trade allocation files to SMArtX. This happens without opening a separate custodial account for the client.

Model

A managed investment strategy provided by an investment manager on the SMArtX platform. Advisors can allocate client account funds to one or more models. SMArtX automates the process of keeping accounts aligned with their selected model strategies.

Model Microsite

A detailed information page for a specific investment model strategy within the Investment Products section of the platform. It includes performance history, portfolio statistics, fee information, and disclosures to help advisors evaluate a strategy before allocating client funds.

Model Overview

A section of the Manager Portal that provides detailed information about a selected model, including its performance history, statistics, and disclosures.

NAV (Net Asset Value)

The per-share price of a mutual fund, calculated at the end of each trading day. Mutual fund trades on SMArtX are executed at NAV. When routed as Manual, the system automatically applies the end-of-day NAV price to the order — no manual fill is required.

Portfolio Builder

A tool within the Proposal Tool that allows advisors to search for and combine models, equities, ETFs, and mutual funds into a proposed portfolio. Advisors set target weights for each asset and can then generate historical performance simulations and white-labeled PDF proposals.

Portfolio Editor

A tool available in both the Advisor Portal and the Manager Portal for editing portfolio positions. Advisors use it to add, edit, or remove individual securities and models in a client's Managed Portfolio sleeve. Managers use it to update model holdings directly in the web interface or via bulk CSV import/export.

Post-Trade Allocation (.pta)

A file submitted by an asset manager to the SMArtX platform after executing off-platform block trades for Manager-Traded Sleeves. The file specifies how the executed trades should be split across the relevant client accounts and model sleeves, allowing the platform to update position records accordingly.

Proposal Tool

A SMArtX tool that allows advisors to build multi-asset portfolios, run historical performance simulations, and generate white-labeled PDF investment proposals for client presentations. Advisors can search for models, equities, ETFs, and mutual funds, set target weights, and compare strategies against multiple benchmarks.

Protected Sleeve

A sleeve used to hold securities that an advisor wants to protect from the platform's automated trading. Holdings moved to the Protected Sleeve will not be sold or modified by the rebalancer or model trading activity. Also used when only part of a position needs to be excluded from a Trade Restriction.

Reallocation

A model change submitted by an investment manager that requires trades to be executed across all affected client accounts. Reallocations are visible in the Trade Generation section of the Trade Desk, where traders can monitor which model changes have been fully implemented and which still require trades.

Rebalance Threshold & Precision Threshold

Settings on a Target Portfolio that control how the rebalancer responds to portfolio drift. The Rebalance Threshold (default: 20%) defines how far a holding can drift from its target weight before a rebalance is triggered. The Precision Threshold (default: 4%) defines how closely rebalance trades aim to bring the holding back to its target weight.

Rebalancer

An automated tool that monitors client accounts daily for drift outside defined target thresholds. When drift exceeds the Rebalance Threshold, it generates proposed trades to realign the portfolio. Advisors can review and approve proposed trades before execution, or enable daily automatic rebalancing.

Recurring Transaction / Deposit Schedule

A CMA feature that automates deposits or withdrawals on a set frequency (e.g., monthly, quarterly). Schedules include a start date, frequency, optional end date, and a cash distribution method. Used for ongoing distributions, dollar-cost averaging plans, or regular account contributions.

Semi-Liquid Funds

Investment funds that are not traded on daily markets and can only be redeemed during specific time windows. SMArtX supports semi-liquid funds within managed and model portfolios, with Do Not Sell protections, redemption window tracking, and post-redemption workflows to manage the unique liquidity constraints of these instruments.

SMA (Separately Managed Account)

An account type where a professional investment manager directly manages the account's holdings and trading. In an SMA, the manager trades the account rather than the SMArtX automated system tracking a model.

SOD Files (Start-of-Day Files)

A set of daily data files sent by SMArtX to asset managers who manage Manager-Traded Sleeves. They include positions (.pos), transactions (.trn), name and address data (.na), and for new or actionable accounts, account enrollment data (.aed) and maintenance instructions (.mnt). These are delivered each morning and form the basis for the manager's off-platform trading decisions that day.

Straight-Through Processing (STP)

A trade routing option on the Trade Desk that sends a trade directly to the custodian for automatic market execution, without manual intervention. Trades sent STP can still be held by the Compliance Engine if a rule is triggered.

Sub-Target

A Target Portfolio that is nested inside another Target Portfolio as one of its weighted components. Sub-targets allow advisors to create hierarchical portfolio structures, such as embedding a fixed income target inside a broader multi-asset target, while managing the sub-target's composition independently.

Substitution

A Trade Restriction that replaces one security with another during trade-building. When a substitution is active, the system purchases the replacement security instead of the original. Advisors can choose how to handle any existing shares of the original security.

Target Portfolio

A customized set of weighted holdings — including individual securities, models, cash, and sub-targets — that add up to 100% and are applied to one or more client accounts. Enterprise-level Targets can be assigned to many accounts at once; Account-level Targets apply to a single account. Once assigned, the Rebalancer keeps the account aligned with the target

Tax Harvester (Tax Loss Harvesting)

A SMArtX tool that identifies opportunities to sell securities at a loss in order to offset taxable gains. Advisors create Harvest Rules and Account Groups, then review and submit harvest requests. The system handles the 30-day wash sale period by placing exclusions on harvested securities across the entire Account Group and, optionally, reopening positions after the restriction expires.

Tracking Error

A measure used in the Transition Tool that compares the current transition scenario's allocation against the 100% target allocation. A lower tracking error indicates the portfolio is closer to its target.

Trade Desk

The SMArtX interface where traders review, route, and monitor model-generated and advisor-directed trades through the full trade lifecycle. Supports equity and mutual fund trades, three routing types (STP, HTE, Manual), and compliance resolution for trades held by the Compliance Engine.

Trade History

A record of all trades executed within a model, available in the Manager Portal. Trade history can be searched and downloaded as a CSV file.

Trade Restrictions

Account-level rules that customize how the platform builds and executes trades for a specific client. The three types are Exclusions (prevent buying or holding a security), Substitutions (replace one security with another), and Equivalent Securities (treat multiple securities as interchangeable). Trade Restrictions allow advisors to accommodate client-specific requirements without creating separate target portfolios for each client.

Transition Scheduler

An automated feature within the Transition Tool that scans the Transition Sleeve on a defined schedule and automatically liquidates positions within the available tax budget, reinvesting proceeds into the target portfolio. The Scheduler can be toggled on or off; when off, advisors manage liquidations manually.

Transition Sleeve

A temporary sleeve created when a client account undergoes a transition to a new target allocation. Holdings move through this sleeve as they are gradually liquidated and reinvested into the target portfolio, according to the tax budget set by the advisor.

Transition Tool

A SMArtX tool that helps advisors evaluate and manage the process of moving a client account from its current holdings to a new target allocation. The tool analyzes tax implications, current holdings, and target weights, and allows advisors to set a Tax Budget to control capital gains realized. Transitions can run automatically via the Transition Scheduler or be managed manually.

UMA (Unified Managed Account)

An account structure that combines multiple investment strategies — such as model-based sleeves, advisor-managed holdings, and separately managed accounts — into a single account at a single custodian. UMAs simplify portfolio management, reporting, and trading while allowing each strategy to be managed independently.

VSP (Versus Purchase)

A tax lot harvesting method available at certain custodians (currently Fidelity and Schwab on SMArtX) that allows advisors to identify and sell specific tax lots of a security by their purchase date and price. This gives advisors precise control over which lots are harvested to maximize the tax benefit.

Wash Sale

An IRS rule that disallows a tax loss if the same or substantially identical security is purchased within 30 days before or after the sale. In SMArtX, the Tax Harvester automatically tracks wash sale periods by placing a closing-only exclusion on the harvested security across the entire Account Group for 30 days. The system can also automatically reopen the position after the restriction expires if desired

Web-Based Model

A type of investment model that can be directly edited by the manager from the Manager Portal. Models delivered via file feed can be viewed but not edited directly in the portal.