SMA income elections

An SMA income election allows you to have all income transferred automatically to your client’s linked Wrap cash account, instead of keeping it within the SMA (which is the default option).

SMA income transfers occur daily. When your client receives income into an SMA, it will be redirected overnight to their linked Wrap cash account and reflected the next business day.

An SMA income election is a set-and-forget efficiency tool for your clients who have a need for regular income. It gives them access to their income without having to redeem assets from their SMA.

SMA income elections are available for all Macquarie Wrap accounts that can hold SMAs.

To make an SMA income election in Adviser Online:

1. Log in to Adviser Online – you must have full transact authority
2. Hover over Clients on the menu under the Macquarie icon and click Accounts
3. Select your client’s Wrap account
4. Select Account details and go down to the Features section
5. Click on the SMA income elections row to expand the accordion where you can see the SMAs held in the account along with their current SMA income elections
6. Click the Update SMA income elections button
7. Select the desired SMA income elections from the drop-down menu for each SMA that you want to update
8. Once you’ve made at least one update, click the Review button
9. Confirm your updates and click the Submit button
10. Your SMA income elections updates should be complete to view on the Account details screen and recorded in Request Centre for future reference.

Once you’ve set up an SMA income election, any income that comes into your client’s account from then on will be redirected.

An SMA income redirection can be enabled for an SMA that is also included in an ACM plan. However, the ACM plan will not run if there is an income redirection transaction in progress at the ACM run date. This is because income redirection is effectively treated as a redemption from the SMA to the primary account, and ACM can’t run where any of the investments in the plan have transactions in progress.

Yes, income elections are set at the SMA level and not the Wrap account level. This provides flexibility for clients, allowing them to receive income from a specific SMA whilst allowing other SMAs to reinvest any income.

Corporate actions that pay an income (e.g. special dividends) will be treated as income for income elections. As a result, this income will be redirected to the linked wrap cash account where SMA income elections are active for the SMA.

You can view current SMA income elections under the Features subheading under Account Details.

Transactions redirected from the SMA to the Wrap cash account will follow this convention:

<(ASX ticker/APIR code) INCOME TFR FROM (SMA code)>

SMA income elections need to be set up per SMA at the Wrap account level as no bulk functionality exists currently.