Defining a Transition Plan (Legacy)

Defining a Transition Plan (Legacy)

NOTE: The following documentation applies only to AdvisorEngine clients utilizing the Smartleaf integration.

A Transition Plan allow accounts to be transitioned out of existing portfolios into model portfolios over time, reducing the upfront tax burden to the client.

The Transition Plan feature provides control over the turnover of a portfolio, where turnover is considered to be the percentage of the current portfolio holdings required to implement Smartleaf’s recommended trades. A turnover of 0% signifies that no trading is required, while a turnover of 100% means that all of the components of the current portfolio must be traded.

This feature allows the user to specify the frequency with which the portfolio should be rebalanced, and the maximum acceptable amount of turnover that can be caused by each rebalancing.

  1. Navigate to Manage Clients > Rebalancing.
  2. Search for and open the account to enable a Transition Plan for.
  3. Click the Profile tab.
  4. On the far right click Edit Profile.
  5. Expand Transition Plan.
  6. Enable Transition Plan Active.
  7. Set the allowable Maximum Turnover percent and the preferred Days Between Rebalancing.
  8. Click Save and Re-Analyze at the bottom to commit your changes.

This feature can be used in conjunction with Setting an Annual Tax Budget to prevent taxes from exceeding a set amount during the transition.

Full feature details: Transition Plan PDF.

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