Dollar Cost Averaging (DCA) is one of the automated investment management tools that facilitates regular investments from your client’s Wrap cash account into the managed investments they hold in their Wrap account.
DCA isn’t available for:
Please note that new plans or updates to existing plans won’t be saved until authorised by you or associates in your office with full transact authority on the client’s account.
When setting up DCA for a retail client, advisers will be required to confirm that personal advice has been provided recommending the account holder/s invest in each of the products within the Dollar Cost Averaging Plan.
Minimum payments
There is a minimum transaction requirement for DCA of $250 per month/quarter and $50 per managed investment applies.
Minimum cash balances
DCA won’t run if the minimum cash balance is breached. You’ll receive an alert if your client’s DCA failed to run due to insufficient cash. See more about alerts here.
When does DCA occur?
DCA transactions will occur on, or around, the 16th of the month (though this date may change without prior notice). If there isn’t enough cash in the account on the 16th (regardless of business day), the DCA will fail to run. If there’s enough cash, the DCA will execute, and the cash will be debited the next business day when the orders are placed.
Cancelling DCA today:
Cancelling DCA at a future date
You can also cancel a plan at a future date. To do that, navigate to the dollar cost averaging page as above. Then, instead of adding today’s date, enter the last day of the month for which you want the plan to end in the final payment date field.
The final payment date must be at least six months after the date the DCA plan was initiated.
How long do I need to run DCA for?
You must make at least six monthly or four quarterly investments before you can cancel an existing DCA plan. You can set the date to a future date in order to cancel a plan once the minimum time requirement has been met.
You can only have one automated investment plan on an account at one time. You can see if your client has any existing plans. For more information, read Check automated plans.
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