Unified Managed Accounts (UMAs) have revolutionized the marketplace for fee-based investment services and are becoming the preferred investment management structure for advisors serving high net-worth clients. Increasingly, advisors are embracing the benefits of UMAs, including the following:
Unified Managed Accounts Benefits
|Lower Cost||Access to separate account portfolios at a lower cost than traditional dual-contract SMA programs|
|Increased Manager Access||Access to more boutique and institutional money managers|
|Lower Account/Product Minimum||Ability to implement SMA portfolios at minimums as low as $50k|
|Reduced Paperwork||Single custodial account eliminates the need to complete separate paperwork for each product/money manager|
|Simplified Administration Process||Automated rebalancing and cash management|
|Improved Diversification &
|Products and asset classes combined in a single account with automatic rebalancing to encourage better diversification and reduced risk|
|Aggregated Reporting||Fewer accounts with fewer custodial account statements and an integrated view of performance|
Separately Managed Accounts have historically been complicated to sell, monitor, and operate. In spite of their tax and customization advantages, many advisors have avoided using them, instead opting for mutual funds and ETFs. With UMAs, the administrative and operational complexities of separately managed accounts are eliminated. Advisors can instead focus on asset allocation by utilizing whatever product types and money managers are most suitable for their clients.
Envestnet|Placemark is an industry pioneer and leading provider of Unified Managed Account solutions, having launched the industry's first full UMA program in 2000. Operations and investment management best practices have been honed through the implementation of customized UMA programs developed for banks, broker dealers, RIAs, and family office organizations across North America.
With Envestnet|Placemark, you obtain access to wealth management features and functionality far beyond those provided in the programs available through most broker dealer and wirehouse platforms, enabling you to compete more effectively for high net-worth clients.