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Separately Managed Accounts
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Create a Separately Managed Account (SMA) |
Separately managed accounts (SMAs) are accounts managed by external investment managers. Although Tamarac Trading cannot recommend specific buys and sells within these accounts, Tamarac Trading can recommend the additional allocation of money to the account or the distribution of amounts from this account to other locations.
To manage separately managed accounts, Tamarac Trading lets you roll the entire account value into a single dummy ticker. You can then use this ticker in clients' models, just as you would any other security with a ticker.
For more information on using funding accounts with SMAs, see Funding Accounts.
SMA settings for reporting in Tamarac Reporting are separate from SMA settings for Tamarac Trading. For more information on using SMAs in reporting and performance calculations in Tamarac Reporting, see Maintaining Accounts: The Separately Managed Account (SMA) Panel.
To designate an existing account in Tamarac Trading as an SMA, follow these steps:
On the Accounts menu, click Accounts.
Select the account that you want to designate as an SMA.
On the Rebalancing tab, select Account Configuration.
Select Separately Managed Account. When you do, two new fields appear: Symbol and % Allocation.
Type a unique Symbol and the percentage allocation in % Allocation. If necessary, you can add more than one ticker to the account by selecting +.
Do not use $$$ as an SMA ticker.
Click Save.
Consider the following when creating and using SMAs in your accounts:
Do not use $$$ or any other traded ticker for an SMA. Choose a unique, dummy ticker instead.
Do not add a cash reserve to an SMA because Tamarac Trading will look to raise cash and all cash holdings will be counted towards the dummy ticker rather than any cash reserves you've set.
Verify that the Hold Do Not Trade restriction has been placed on the SMA ticker and/or that the SMA account is using the Restrict All Securities restriction. These settings prevent trade recommendations in an SMA account.
The following account and system settings affect SMAs and how they're handled in clients accounts when trading.
This account setting is used to turn an account in Tamarac Trading into an SMA, and specify one or more dummy tickers for the SMA, as well as percentage allocation for that ticker.
For more information, see Separately Managed Account Setting.
The Ignore SMAs for reconciliation setting is available on the Rebalancing System Settings page and allows you to ignore SMAs during reconciliation.
For more information, see Reconciliation Settings.