Overview

By default, sleeves (UMAs or Unified Managed Accounts) raise or spend cash on an individual sleeve level, meaning they trade each sleeve in its own separate account. Selecting calculate at the sleeved portfolio level creates trades based on the contribution or distribution methods at the portfolio level. Multiple settings are specific to portfolio level raise or spend cash that needs to be set. 

Review the Orion Trading Platform - Raise/Spend Cash Tool Overview for more information on the basics and logic of the spend or raise cash tool.
 

Single Sleeve Level

Navigate to the Spend or Raise Cash Tools, do not check the "Calculate at Sleeve Portfolio (Include All Sleeves in Portfolio)" in the top left corner of the tool, and select whether you want the cash to be moved to the distribution sleeve after processing. The rest of the tool works the same as raising or spending in a standard, non-sleeved account. 

Review the article mentioned for more information on this process. 
 

Calculate at Sleeve Portfolio Level

Navigate to the Spend or Raise Cash Tools and check the "Calculate at Sleeve Portfolio (Include All Sleeves in Portfolio)" in the top left corner of the tool. Checking this gives you options for what to do with the cash after trading. 

Raise Cash Settings

Update the dropdown underneath to either Individual Sleeve or Distribution Sleeve. This tells the system where to put the raised cash after trading. Selecting individual sleeves means the tool does not move any cash out of the sleeves that they are raised in. Choosing distribution sleeve tells the system to journal all raised cash into the distribution sleeve after raising cash. Click next to continue with the tool.




On the second create trades tab of the tool, there are two dropdowns to choose from. The Raise Cash Method dropdown allows you to choose how the cash is raised and includes seven options:

• Use Default: In the administrator firm preferences, the preference "Raise Cash Default Method" allows you to select one of the below selections that automatically gets picked each time you raise cash. 
• Pro-Rata: Distributes the cash and creates a sell-trade of each targeted security. When every targeted position is not owned, the full amount is not raised.
• Sell Rebalance: Sells the most out of tolerance position back to target. Then, trades the second most out of tolerance position to target. The pattern continues until the full amount is raised.
• Sell Rebalance with Oversell: Sells the most out of tolerance position back to lower trade tolerance. Then, trades the second most out of tolerance position to lower trade tolerance. The pattern continues until the full amount is raised. This option is best practice for household level trading as it ensures cash is raised in accounts that may not hold overweight positions. Please note the "allow trade past target to tolerance" below.
• Sell Rebalance with Emphasis: The system runs a sell rebalance on a portion of the model. For example, when you are raising cash from only equities. This sells the most out of tolerance position back to target and then trades the second most out of tolerance position to target. The pattern continues until the full amount is raised.
• Sell Full Rebalance: Raises cash and runs individual rebalances on each sleeve. This does not run a portfolio level rebalance (out of tolerance sleeves are not brought into tolerance).
• Sell full rebalance (Portfolio): Raises cash and runs a full portfolio rebalance. This brings both sleeves and securities into tolerance.
• Individual securities: Sleeves only - Allows the user to pick and choose the individual securities that they would like to sell.

The second dropdown, Distribution Method, allows you to override the current distribution method in the sleeve setup. Distribution methods tell the tool what percentage of the full raised value should come from each sleeve. To learn more about these methods, review How to Sleeve a Custodial Account.

You also have the option on the second page to update the amount to raise or delete portfolios you do not wish to trade on.

Spend Cash Settings

• After opening the Spend Cash Tool in Orion Trading, check the box for "Calculate at Sleeve Portfolio (Include All Sleeves In Portfolio)". This updates the tool to only search for sleeved accounts.
• To quickly spend all the cash in the contribution sleeve, click the "Add All Portfolios With Value in Contribution Sleeve" button under the search bar. Clicking this adds all of the sleeved portfolios with value inside their contribution sleeve to the selected portfolios and calculates the full value of the contribution sleeve.
• The second checkbox for "Protect Set Aside Cash in Contribution Sleeve" tells the system not to spend any cash protected by a set aside cash in the contribution sleeve when checked. When unchecked, any set aside cash in the contribution sleeve is spent. 
• Edit the Amount to spend a specific amount or enter "0" to not journal any cash out of the contribution sleeve. Entering 0 only spends any excess cash in each individual sleeve.

After clicking next, it brings you to the Create Trades tab in the tool. There are two dropdowns to consider before creating trades. The first is the Spend Cash Method dropdown and is where you select how the cash is spent in the sleeves. There are five options:
 

• Use Default: In the administrator firm preferences, the preference "Spend Cash Default Method" allows you to select one of the below selections that automatically gets picked each time you raise cash. 
• Pro-rata: Distributes the cash and creates a buy-trade of each targeted security.
• Buy Rebalance: Buys the most out of tolerance position back to target. Then, it trades the second most out of tolerance position to target. The pattern continues until the full amount is spent.
• Buy Rebalance with Overbuy: Buys the most out of tolerance position back to upper trade tolerance. Then, it trades the second most out of tolerance position to upper trade tolerance. The pattern continues until the full amount is spent. This option is best practice for household level trading as it ensures cash is spent in accounts that may not hold underweight positions. Please note the "allow trade past target to tolerance" below.
• Buy with Full Rebalance: Spends cash and runs individual rebalances on each sleeve. This does not run a portfolio level rebalance (out of tolerance sleeves are not brought into tolerance).

The second dropdown, Contribution Method, allows you to override the current contribution method in the sleeve setup. Contribution methods tell the tool what percentage of the full raised value should come from each sleeve. 

You also have the option on the second page to update the amount to raise or delete portfolios you do not wish to trade on.