Q: What does the Transition Analysis Tool do?
A: It evaluates potential transitions of an account to a new target allocation, considering tax implications, current holdings, and target weights.
Q: What is the purpose of the Tax Budget?
A: It sets limits on capital gains/losses during the transition, guiding which positions to liquidate.
Q: Can SMA accounts use the Transition Analysis?
A: No. SMA (Manager Traded) accounts are not supported.
Q: Are bonds and options included in the tax impact calculation?
A: No. They are excluded and cannot be placed in the transition sleeve.
Q: What is the difference between the Guided Tour and Self-Guided Route?
A: Guided Tour is a step-by-step walkthrough for new users. Self-Guided Route lets experienced users navigate independently.
Q: Can I manually control the transition instead of using the Scheduler?
A: Yes. You can set “Scheduler Off” to manage liquidations manually.
Q: What happens if a model needs a position that sits in the Transition Sleeve?
A: The system journals the position from the transition sleeve into the model sleeve automatically.
Q: Does the system provide a time estimate for transitions?
A: No. Duration depends on budget settings and market conditions.
Q: Does the Transition Tool adjust the target allocation based on holdings in the Transition Sleeve?
A: No. It allocates funds into the target as defined, minus the value in transition.
Q: How does the system handle leftover budget from the initial transition?
A: Any unused budget is carried forward into the Transition Sleeve. Once exhausted, the system assumes $0 budgets unless updated.
Q: How do I update the budget or settings (Target, Tax Budget, Scheduler)?
A: Use the Pencil icon to edit. Changes apply immediately.
Q: What happens at year-end to budgets set in the Scheduler?
A: They continue unchanged. Advisors must manually adjust if needed.
Q: How do I finalize and submit a transition?
A: Review the Tax Impact Summary and Sleeve Breakdown, then click Submit. A confirmation or error message will appear.
Q: What does the tracking error measure?
A: It compares the transition scenario allocation against the 100% target allocation.
Q: Can an account have multiple transitions?
A: No. Each account has one Transition Sleeve, which remains active until all positions are transitioned.