How do I set up a cash sweep?

What is a cash sweep?

The purpose of switching on a Cash Sweep is to ensure cash can be automatically invested without you having to manually invest the funds each time funds are transferred into the account. This is also because when cash comes to Mason Stevens, it will sit in the Self-Directed portfolio.

The sweep occurs every month on the 22nd (or next business day) and must meet the below requirements:

  1. The amount being invested in the existing managed portfolios is at least $5,000; and
  2. The managed portfolios total minimum initial investment has been met.

The cash sweep negates the need for the minimum investment or additional amount to be met when investing into a model.

What needs to be set up before a cash sweep can be created?
You need to have a model portfolio to set up a cash sweep, if this has not already been created at the original stage of onboarding you will need to go to Add Portfolio.

Note

A Cash Sweep can be set up for an account with only a Self-Directed portfolio and no model portfolios, however nothing will occur.

An Investment profile must be created as this will allow the Platform to sweep funds in accordance to an allocation.
How do I set up a cash sweep?

1.  On the vertical menu under account, select Investing.

2. A horizontal menu will appear. Automatic investment plan.

3. Click on Create new automatic investment plan.

4. You will need to select a date to commence the Automatic investment plan.

5. Enter the percentage allocation between the portfolios ensuring it equates to 100%.

6. Lastly to nominate whether a cash sweep will be switched on for this account and then select Save.

What is a daily sweep?

A daily sweep occurs once an Automatic investment plan has been set up, when the contribution amount made meets the minimum initial or additional investment amount.

The sweep also occurs when you have nominated "No" to the Cash sweep but have an Automatic investment plan set up.

How does the cash sweep and daily sweep work in conjunction?

If you select to have a Cash sweep and have an Automatic investment plan, two sweeps are occurring on the account.

If there are any new contributions made to this account on any day within the month and meets the minimum initial or additional amount, the contribution amount will sweep according to the Automatic investment plan that has been set on the account.

For any contribution made that does not meet the minimum initial or additional amount will sit in the Self-Directed Portfolio, the cash will sit in that portfolio until the Cash sweep occurs on the 22nd of each month contingent on the two requirements being met. If they are met the cash will sweep and follow the Automatic investment plan created.

Note

The Automatic investment plan is only used as a mechanism for new contributions, this tool will not be used as a way of rebalancing and sell down for an account.

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