Overview
The Funding Sleeve is a dedicated cash sleeve used to hold funds related to CMA activity. While a CMA schedule is active, ALL cash in or out of the account routes through the Funding Sleeve first — whether or not that specific cash relates to the schedule.
Where to View: Accounts → Funding
What Moves Cash Into the Funding Sleeve
Any new deposit received while a CMA schedule is active
Cash raised by a CMA withdrawal (held here until swept to the custodian)
What Moves Cash Out of the Funding Sleeve
Withdrawal at the custodian
A CMA deposit schedule — on the scheduled date, the CMA deploys the scheduled amount into the Managed Portfolio Sleeve
How Deployment Works: CMA Transaction Methods
Whether scheduled deposits actually buy anything depends on the transaction method selected:
Method | How It Works | Best For |
Pro Rata | Trades proportionally based on current holdings | Maintaining existing allocation weights on accounts with a manageable number of holdings |
Equal Weight | Distributes trades evenly across target portfolio | Balanced adjustments toward optimal allocations |
Custom | Advisor manually allocates cash by dollar amount | Precise control and special scenarios |
Rebalancer | Uses target weights to invest cash; keeps portfolio aligned to model | Target-driven portfolios — ⚠️ if no target is set, account may be liquidated to cash |
⚠️ Important
If the recurring monthly amount is funded by new money arriving that month — whatever cash has already piled up in that sleeve will NOT be deployed automatically. A large balance sitting in the Funding Sleeve will only get swept if a CMA deposit for that excess amount is submitted, or it's journaled out at the custodian.
Managing Funding Sleeve Cash
Situation | Resolution |
Excess cash sitting in Funding Sleeve | Create a CMA deposit to invest the cash into the portfolio, or withdraw the excess through the custodian |
Too little cash in Funding Sleeve | Schedule a deposit through the custodian, or create a CMA withdrawal to raise additional cash from the portfolio |