This guide explains how to set up cash target and investment instructions in Netwealth. Netwealth executes instructions monthly between the 24th and 29th, with trades viewable under Transactions.
Step 1: Navigate to the cash management tool
Select any account and then navigate using the main menu to Transactions > Cash management > Cash Settings.
Step 2: Set your cash target
Cash Target will automatically be set to the client’s minimum cash. Read more on how this is calculated here.
If you would like to set a higher cash target, select 'Yes' and then input your cash target using one of the following options:
- (%) Set a cash target that is a percentage (%) of the total portfolio account balance
- ($) Set a cash target that is a dollar ($) figure
Buy and Investment Triggers will be set to same setting as what is chosen in cash target.
Advanced tip: If you have a pension account or a wealth account with a regular pension payment, withdrawal plan, or insurance payment use the calculator to set a cash target based on numbers of withdrawals. Click on the calculator icon to access.
Step 3: Set your investment instructions
a) Select your reinvestment method
When you receive income, distributions, sell an asset or receive other inflows into your cash account, Netwealth needs instructions as to how to deal with this excess cash.
Select from the following options:
| Investment option | Explanation |
| Leave as cash |
No reinvestment instructions will be completed |
| Pay to bank |
The net of income received less expenses paid between the 16th of the previous month to the 15th of the current month will be paid to your nominated bank account. This amount will exclude distributions reinvested. This option is only applicable to Wealth Accelerator accounts. |
| Excess cash |
All Excess Cash, above the cash target will be invested |
| Income |
Only income received will be reinvested. This includes: (a)The net of income received less expenses paid between the 16th of the previous month to the 15th of the current month, plus. (b)Saving plan and regular contribution plan amounts made by direct debit. |
| Income & Contributions |
Income and contributions will be reinvested. This includes: (a)The net of income received less expenses paid between the 16th of the previous month to the 15th of the current month, plus. (b) Saving plan and regular contribution plan amounts made by direct debit, plus (c) Employer contributions (including Super Guarantee and Salary Sacrifice). |
| Distributions only | Distributions received from a managed fund will be reinvested back into the same fund. |
Distribution settings will be run once the funds have been received, rather than waiting for the cash settings. You can select which managed funds distributions are applied to in the "Assets to buy" section. Tick the "Distributions" box of the funds you wish to reinvest in.
b) Select your buy trigger (optional)
This option is only relevant for Excess Cash, Income and Income & Contributions options.
The buy trigger is the amount cash levels can rise to without triggering the reinvestment action selected above, in 3a). This provides a buffer for the cash target and helps manage the frequency of trading.
Example: $2,000 of income is received and $500 fees are deducted, leaving a net income of $1,500 to be reinvested.
| No buy trigger | Buy trigger selected |
|---|---|
|
I currently have $5,000 in cash A cash target of $5,000 Reinvesting income only No buy trigger is selected. |
I currently have $5,000 in cash A cash target of $5,000 Reinvesting income only Buy trigger is set to $7,000. |
| $1,500 income will be reinvested | $1,500 income will remain in cash (until the cash value rises to/above $7,000) |
c) Select your investment limit (optional)
This option is only relevant for Excess Cash, Income and Income & Contributions options.
If the total reinvestment amount is greater than the investment limit, the reinvestment instructions will not be executed.
The investment limit MUST be higher than the buy trigger, or it will not run
Example: $3,000 of income is received monthly and a one-off contribution of $50,000 is received.
No investment limit |
Investment limit |
|---|---|
|
I currently have $2000 in cash A cash target of $5,000 Reinvesting excess cash No buy trigger is set No investment limit is set |
I currently have $2000 in cash A cash target of $5,000 Reinvesting excess cash No buy trigger is set Investment limit is set to $10,000 |
| $50,000 will be invested | The entire trade of $53,000 will not be processed because it is above the investment limit of $10,000. |
Step 4: Set your auto sell down instructions
a) Select your sell trigger (optional)
By default, the Sell Trigger will be minimum cash. Read how minimum cash works here.
If you set a Cash Target, you can also set a custom sell trigger (which must be between the Netwealth minimum cash amount and the Cash Target) whereby assets will be automatically redeemed to top the cash account up to the Cash Target amount.
If you do not set a cash target, your trigger will be the Netwealth minimum cash requirement.
Select your auto sell down profile from the below options:
| Auto-sell option | Explanation |
| Default |
Assets are sold from largest to smallest based on dollar value in the following order: 1. Managed Funds 2. ASX Listed securities 3. Other investments |
| Rank in order | Assets are sold based on the ranking you select. (Managed funds, Managed Models and ASX listed securities only) |
| Pro-rata | Assets are sold based on their proportion of your portfolio. (Managed funds only) |
ASX and International Brokage costs do apply to Auto Sell Down transactions
Users can check their 'my tasks' dashboard at any time to view a list of accounts that are below their sell trigger/minimum cash requirement at any time.
Step 5: Completing the transaction
Between the 24th and the 29th of each month, Netwealth will execute the Cash Settings instructions in accordance with your set investment option as listed in Step 4, Section A.
The dates listed above are not guaranteed. Whilst Netwealth endeavour to complete the execution in a timely manner, volumes and other variables may impact the date.
Once the trades have been executed, pending buys and sells are able to be viewed by selecting an account and then navigate using the main menu to Transactions > Search Transactions.
Please note the difference in the effective date and processed date. The effective date is the date that Netwealth receives the instruction, and the processed date is the date that Netwealth actions the instruction on the account.
Using the offline form
You may use the 'Investment Instructions' form to process an investment instruction. Please note that this will incur in an offline form fee as this feature is available online. An authorised adviser representative may sign off on the client's behalf for this form.