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Separately Managed Accounts
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Separately managed accounts (SMAs) are accounts managed by external investment managers. Although Advisor Rebalancing cannot recommend specific buys and sells within these accounts, Advisor Rebalancing can recommend the additional allocation of money to the account or the distribution of amounts from this account to other locations.
To manage separately managed accounts, Advisor Rebalancing lets you roll the entire account value into a single dummy ticker. You can then use this ticker in clients' models, just as you would any other security with a ticker.
For more information on using funding accounts with SMAs, see Funding Accounts.
To designate an existing account in Advisor Rebalancing as an SMA, follow these steps:
On the Accounts menu, click Account Settings.
In the Search accounts box, type the name or number of the account which you'd like to make an SMA. When you see the account in the list, click it, and then click Select.
Click the Account Configuration tab.
Choose Yes in Separately Managed Account. When you do, two new fields appear: Ticker and % Allocation.
Type a unique Ticker symbol and the percentage allocation in % Allocation. If necessary, you can add more than one ticker to the account by clicking Add.
Do not use $$$ as an SMA ticker.
Click Save.
Consider the following when creating and using SMAs in your accounts:
Do not use $$$ or any other traded ticker for an SMA. Choose a unique, dummy ticker instead.
Do not add a cash reserve to an SMA because Advisor Rebalancing will look to raise cash and all cash holdings will be counted towards the dummy ticker rather than any cash reserves you've set.
Verify that the Hold Do Not Trade restriction has been placed on the SMA ticker and/or that the SMA account is using the Account on Hold restriction. These settings prevent trade recommendations in an SMA account.
The following account and system settings affect SMAs and how they're handled in clients accounts when trading.
This account setting is used to turn an account in Advisor Rebalancing into an SMA, and specify one or more dummy tickers for the SMA, as well as percentage allocation for that ticker.
For more information, see Separately Managed Account Setting.
The Ignore SMAs for reconciliation setting is available on the System Settings page and allows you to ignore SMAs during reconciliation.
For more information, see System Settings: Reconciliation Settings.
