Understanding automatic cash management

Automatic cash management (ACM) is one of the automated investment management tools to help you manage your client’s wrap cash account balance. With ACM, you can select and automatically maintain a minimum and/or a maximum cash balance. 

You can set up an ACM plan for any of your client’s accounts that hold managed investments.

ACM isn’t available for:

• Australian and international listed securities
• term deposits
• non-daily priced funds.

1. Log in to Adviser Online
2. Select Clients, then Accounts
3. Search for and select your client's wrap account
4. Select Portfolio, then Administration
5. Under Automated plans, expand the Automatic cash management accordion and select Add/Update automatic cash management
6. Select Enter or maintain automatic cash management
7. Enter a plan end date or select Until further notice 
8. Select if you want your client’s ACM plan to be:
   • a maximum plan – buy investments with excess cash
   • a minimum plan – sell down investments to top up cash, or
   • a combination of both.
9. Enter either a dollar amount or percentage value for both the target and trigger amounts. You must complete the plan with either all dollar amounts or all percentages.
   • For pension accounts, you can specify a target and trigger using pension payment details (e.g. 4 months’ pension payments) 
10. Choose if you want to set an investment limit. Transactions that exceed this limit won't proceed without your authorisation.
11. Choose an allocation method: 
    • Proportional – Each managed fund listed will be topped up equally (available for maximum plans only)
    • Percentages – Each managed fund listed will be topped up or sold down based on the percentages you choose (minimum of 1%, available for maximum and minimum plans) 
    • Priority – Managed funds will be sold down in the order selected (available for minimums plans only)
12. Use the search bar to add managed investments to the plan list 
13. Select Update to confirm the changes.

ACM will run on the 20th of the month. When that falls on a weekend, the plan will run the following business day.

Your client’s balance will be calculated on the 20th of each month that the plan runs. The ACM plan will determine if your client’s account balance has breached its trigger amount. If the cash balance has breached the trigger amount, assets will be bought or sold until the cash balance is brought back to the target amount. 

The cash target and trigger amounts you set refer to the balance of your client's wrap cash account. Please keep in mind the cash minimum when setting up a minimum plan for regular payments.

Example 

You’ve set up a maximum plan with a trigger of $10,000 and a target of $8,000. On the 20th of the month, your client’s wrap cash account balance is $11,000. The ACM will buy managed investments to reduce the wrap cash account balance back to the target of $8,000.  

You can choose to set an investment limit when setting up an ACM plan. You’ll receive an alert that an ACM transaction exceeded the limit and needs your authorisation. Please note that if you don’t authorise the transaction by the 28th of the month, we’ll automatically cancel the order.

ACM won’t process any investment into assets with pending transactions.

You can cancel an ACM plan:

• today, or
• at a future date

Yes. You can find more information here.

You can only have one of the following automated plans on an account at any given time:

• Dollar cost averaging
• Automatic cash management