Clients can set asset and GICS sector exclusions within an SMA account. Any existing holdings in your client’s SMA account will be fully sold down and won’t be bought back in any future rebalance.
Below we cover some common questions about how these exclusions work.
For the assets and GICS sectors selected to be excluded from SMA accounts, what happens to the cash that would have been allocated?
Funds for the excluded assets will be allocated to the remaining assets across the SMA account.
Can I exclude certain assets or GICS sectors from an SMA account at a bulk level?
SMA customisations need to be set at the wrap account level as no bulk functionality exists currently.
Why isn't the security I want to exclude appearing in the drop-down list?
The security may not appear in the security level drop-down list if it's yet to IPO (float) or undergoing a corporate action, given the security needs to be set-up in our systems to appear. For a list of all upcoming IPOs, you may refer to the ASX website, while all upcoming and ongoing corporate actions can be viewed via the Corporate Actions Calendar on Wrap Online. To access from Adviser Online:
- Click on Go to Wrap online and select Macquarie Wrap
- Select Transacting then Corporate Actions
- Click Corporate Actions Calendar.
If you have any further questions, please contact us via live chat in Adviser Online.
Why can’t I exclude international equities from an SMA customisation?
Customisations can only be set for:
- Managed investments
- ASX listed securities and ETFs
- GICS sectors.
Where an exclusion is applied and assets are sold down, how is the cash allocated to the other investments within the SMA?
Sell down proceeds will be re-invested across the remainder of the SMA on a pro rata basis.