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Cash Allocation Reminders

Do Your Clients Deposit Money into their Brokerage Accounts and Not Tell You?

Clients do not always provide the same information flow that they may expect of their investment advisors. Events may change the impetus for a financial plan and investment decisions are made without the input of the investment advisor on occasion. One aspect that affects the performance of a portfolio, and possibly the perception of the investment advisor’s acuity, is when a client moves cash into the account being managed by their RIA without informing their advisor. This creates an inherent misallocation of the underlying securities as it relates to the portfolio as a whole and can be a drag on portfolio performance.  

SMArtX’s UMA platform effectively eliminates this issue with its drift management and rebalancer tools. When an advisor creates a portfolio, they are able to put drift parameters on the size of the cash position, just like they can on any other security or strategy in the portfolio. When cash in moved into the account, SMArtX automatically prompts the advisor to rebalance the over-allocation and distribute it throughout the rest of the portfolio to ensure an accurate execution of the asset allocation.
See how SMArtX solutions can help to you to scale your business and streamline your investment management process.