Fidelity CMA new core position - possible snag?

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Vulcan
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Fidelity CMA new core position - possible snag?

Post by Vulcan »

Ok, folks.

I just came across a possible snag with the Fidelity CMA new SPAXX core position I opted into.

I went in to initiate some transfers this morning, and noticed that the available cash in the account is a few bucks short of the balance of the account summary topline. This is not something I expected, since I made no recent deposits of any kind.

Drilling in further down I realized that the amount of the difference is the SPAXX dividend for the previous month, the first month it became my core position.

I have no idea what causes this behavior, and neither does Fidelity rep I just spoke to. They told me to call back after 8:30 when the "dividend team" comes in.

I now (sort of) remember why I foreswore using Fidelity CMA in the years past, when, I think, I manually bought a MMF in CMA and faced a similar issue causing outside ACH pull to fail and creating a major headache for me at the time.

I know there is a 139 (and counting) pages-long thread on Fidelity CMA, and I deliberated posting this there, but figured most people probably ignore it by now, and this may be important enough to save someone else some grief.

I welcome any insights, and absent that, will update the thread with any developments.

One thing I am puzzling about is whether in addition to changing the core position I needed to fiddle around with the dividend management gizmo. It is currently at its default setting for CMA:

Image

For now, my June dividend still shows as "Dividends accrued" in the "Pending" section. Perhaps "reinvest in security" would lead to a more expected behavior. I will leave it be for now until Fidelity "dividend team" has a chance to weigh in.

In the meantime, I am a happy camper with Vanguard CP as my main cash flow account. 8-)
If you torture the data long enough, it will confess to anything. ~Ronald Coase
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Vulcan
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Re: Fidelity CMA new core position - possible snag?

Post by Vulcan »

...and now I am reading here:

https://www.fidelity.com/webcontent/ap0 ... on_d.shtml

"Dividends Accrued
...
Distributions are shown in the Dividends Accrued field until payment is made.

Note: Payments are made according to the instructions on the account (daily, weekly, or monthly) as long as there is a distribution greater than $25."

Gee, I hope that's not what it is! I wish I remembered what explanation they gave me years ago when I had this issue, but it very well might have been it.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
aristotelian
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Re: Fidelity CMA new core position - possible snag?

Post by aristotelian »

Vulcan wrote: Wed Jul 10, 2024 6:02 am ...and now I am reading here:

https://www.fidelity.com/webcontent/ap0 ... on_d.shtml

"Dividends Accrued
...
Distributions are shown in the Dividends Accrued field until payment is made.

Note: Payments are made according to the instructions on the account (daily, weekly, or monthly) as long as there is a distribution greater than $25."

Gee, I hope that's not what it is! I wish I remembered what explanation they gave me years ago when I had this issue, but it very well might have been it.
That would seem like a good possible explanation. Did you check to see if the accrued amount lines up with when it was last paid? See if it goes up over the next couple of days. Other than confusion from "too much information" what do you see as the problem here?
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Vulcan
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Re: Fidelity CMA new core position - possible snag?

Post by Vulcan »

aristotelian wrote: Wed Jul 10, 2024 6:38 amOther than confusion from "too much information" what do you see as the problem here?
That monthly interest is not available until possibly many months later (if they indeed only release it once $25 is accrued) is a change from the previous behavior and definitely not something I was made aware of when I switched to SPAXX as the core option.
Last edited by Vulcan on Wed Jul 10, 2024 9:18 am, edited 1 time in total.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
NYCaviator
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Re: Fidelity CMA new core position - possible snag?

Post by NYCaviator »

Vulcan wrote: Wed Jul 10, 2024 7:18 am
aristotelian wrote: Wed Jul 10, 2024 6:38 amOther than confusion from "too much information" what do you see as the problem here?
That monthly interest is not available until possibly many months later (if they indeed only release it once $25 is accrued) is a change from the previous behavior and definitely not the something I was made aware of when I switched to SPAXX as the core option.
Does this mean that if your interest earned on SPAXX for the month is $24, it won't be paid until the interest accrued is $25? That seems odd, and I don't remember other MMFs doing that.
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8foot7
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Re: Fidelity CMA new core position - possible snag?

Post by 8foot7 »

I changed the core position in a CMA to SPAXX in mid-June and received $1.62 of dividends on the 28th.

Jun-28-2024
DIVIDEND RECEIVED FIDELITY GOVERNMENT MONEY MARKET (SPAXX) (Cash)
+$1.62
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Vulcan
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Re: Fidelity CMA new core position - possible snag?

Post by Vulcan »

8foot7 wrote: Wed Jul 10, 2024 7:24 am I changed the core position in a CMA to SPAXX in mid-June and received $1.62 of dividends on the 28th.

Jun-28-2024
DIVIDEND RECEIVED FIDELITY GOVERNMENT MONEY MARKET (SPAXX) (Cash)
+$1.62
Yes - but is it available or still pending when you look at your Summary and Positions screens?
If you torture the data long enough, it will confess to anything. ~Ronald Coase
PersonalFinanceJam
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Re: Fidelity CMA new core position - possible snag?

Post by PersonalFinanceJam »

For what it's worth I don't see this issue either, and I had $10.99 in dividends from SPAXX being my core position deposited on June 28th much like above.

*edit to add*
For what it's worth my settings are reinvest in security for the dividend and yes it is all available. Nothing is pending.
Django Ii
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Re: Fidelity CMA new core position - possible snag?

Post by Django Ii »

My June SPAXX distribution is available. It was only $5.53 . All my balance information matches.
Lastrun
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Re: Fidelity CMA new core position - possible snag?

Post by Lastrun »

PersonalFinanceJam wrote: Wed Jul 10, 2024 7:40 am For what it's worth I don't see this issue either, and I had $10.99 in dividends from SPAXX being my core position deposited on June 28th much like above.

*edit to add*
For what it's worth my settings are reinvest in security for the dividend and yes it is all available. Nothing is pending.

100% same. SPAXX dividend shows on June 28th and it was set to reinvest in security. But mine was greater than $25, but again set to reinvest in security. Honestly cannot remember if I did that or it just defaulted to that when I set SPAXX as the new core.
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8foot7
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Re: Fidelity CMA new core position - possible snag?

Post by 8foot7 »

Vulcan wrote: Wed Jul 10, 2024 7:36 am
8foot7 wrote: Wed Jul 10, 2024 7:24 am I changed the core position in a CMA to SPAXX in mid-June and received $1.62 of dividends on the 28th.

Jun-28-2024
DIVIDEND RECEIVED FIDELITY GOVERNMENT MONEY MARKET (SPAXX) (Cash)
+$1.62
Yes - but is it available or still pending when you look at your Summary and Positions screens?
Fully available.
MrJedi
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Re: Fidelity CMA new core position - possible snag?

Post by MrJedi »

I don't see this issue on my account with a small dividend of a few pennies. All of it is available for transfer.
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Vulcan
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Re: Fidelity CMA new core position - possible snag?

Post by Vulcan »

Thanks, folks.

It looks like the "Deposit to Core" is the possible culprit.

I do not specifically recall selecting it last month, but I just had my son check his, and its set to "Reinvest in Security", and his is also fully available.
So perhaps I did select it - because, don't I want my core money in the core? :oops:

I have set it to reinvest now, but I suspect that to claw back the few bucks that are currently stuck and restore sanity to my total balance I might have to temporarily switch the core back to the FDIC position and then back to MMF.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
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Vulcan
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Re: Fidelity CMA new core position - possible snag?

Post by Vulcan »

Vulcan wrote: Wed Jul 10, 2024 8:14 am I have set it to reinvest now, but I suspect that to claw back the few bucks that are currently stuck and restore sanity to my total balance I might have to temporarily switch the core back to the FDIC position and then back to MMF.
Welp, that didn't do it. Core switched to FDIC, but the dividend is still pending. :annoyed

Fidelity provided nonsensical answers ("you have transfers that need to settle") when I called back the other day.

Not impressed with customer service so far on what should have been a trivial issue for them if it's part of their normal operation.

Will be calling back again today.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
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Vulcan
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Re: Fidelity CMA new core position - possible snag?

Post by Vulcan »

Whoa!

Just spent an hour on the phone with two different reps at Fidelity (with back office engaged in the process).

Apparently, my problem had nothing to do with the type of dividend reinvestment that was chosen on the website, or the $25 minimum I read about on the website.

Instead, there was some sort of wrong type of dividend reinvestment selected in somewhere, and they had to "dig around" and found it in one of their "very old systems" (my account was established in 2010).

They claim it is all now fixed, so I will attempt to switch back into the SPAXX core position on Monday and shall hold my breath for July dividends.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
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