Dollar Cost Averaging (DCA) is an automated investment management tool that enables you to make regular monthly or quarterly investments from your client’s cash account into certain managed investments or Separately Managed Accounts (SMA). DCA isn’t available for:
You can have one automated investment plan on an account at a time. To see if your client has an existing DCA plan:
Just so you know, new plans or updates to existing plans won’t be saved until authorised by you or by associates in your office with full transact authority. A pending status indicates the plan hasn’t been authorised.
When setting up a DCA plan for a retail client, you’ll need to confirm that personal advice has been given recommending that the account holder/s invest in each of the products within the DCA plan.
The minimum transaction requirement for DCA is $50 per managed investment or SMA.
DCA won’t run if the minimum cash balance is insufficient. You’ll receive an alert if your client’s DCA plan fails due to insufficient cash. You can see more about setting up an alert for a client.
DCA transactions will occur on, or around, the 16th of the month (though this date may change without prior notice). If there’s enough cash, the DCA will occur, and the cash will be debited the next business day after the order is placed. When the 16th falls on a weekend, DCA will generally occur the first business day after the weekend.
Chat in real-time with an adviser consultant Monday to Friday, 8am to 7pm Sydney time (excluding public holidays).
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