Making cash management easier

Free up more trading days with our new cash management option

Any client investment strategy will bring with it fees and charges, paid through your client’s cash account. Where trading flexibility is key, we’ve created a cash management option which reduces the amount of automated platform trading on the account. This minimises queueing, which helps ad hoc trades and other transactions take place in a timely way.

Introducing cash management

When there isn’t enough money in a client’s cash account to pay for charges, the platform will sell investments and convert those holdings into cash. However, multiple trades can create a queue, creating potential delays to ad hoc trades and other transactions.

Our new cash management option enables the platform to sell six times’ the amount required to pay for the Aviva charge, advice charge and (where applicable) DIM charges. The remaining cash is available in the account which reduces disinvestment frequency, creates more ad hoc trading days, and helps other transactions take place in a timely way.

Flexibility for you, with little impact on investment returns

The actual value of your client’s investment in the cash account will be very small – for example, if the Aviva charge and the advice charge total 1%, on average only 0.25% of the portfolio will be in the cash account throughout the year. We will disinvest six times’ the monthly amount only when the cash account no longer holds enough funds to pay the next charge due.

Is cash management the right option for your client?

Cash management may be a good option for clients who look for a degree of trading flexibility throughout the month. With a lower number of platform generated trades going through, there will be fewer occasions when multiple trades queue.

Your client may want to be as fully invested in their portfolio as possible, making a minimal number of ad hoc changes to their assets throughout the year. In these cases, cash management may not be the best option.

Want to know more?

Learn more about cash management and see how you can enable it for your clients’ products in our guide.