Why Use UMAs?
UMAs enable a powerful investment management discipline–Overlay Portfolio Management (OPM). Due to the complexity of communicating with multiple separate account managers, it is operationally difficult, if not impossible, to offer automated services such as rebalancing or tax management in traditional separate account programs. By making investment decisions at a client account level rather than at the product or manager level, overlay management is able to deliver a much more customized investment solution while also improving operational efficiency and automation.
|Both ongoing systematic and one-time deposits and withdrawals are processed by the overlay portfolio manager, streamlining the process for both you and your client.||Maintain appropriate diversification by automatically rebalancing across all the products within the UMA.|
|Tax Management||Restriction Management|
|Optimize gain/loss realization across products, establish yearly gain recognition limits to eliminate or avoid short-term gain realization, and more actively manage the accounts of tax-sensitive clients.||Apply consistent processes across products to avoid investing in certain securities, sectors, industries, or social/environmental categories due to personal preference, employer requirements, or risk reduction imperatives.|
Traditionally, coordination among an investor's multiple separate account managers, mutual funds, and other investment vehicles has been difficult and cumbersome. By integrating the previously disconnected pieces of a client's portfolio into a single account with one central discretionary authority, the Overlay Portfolio Manager (OPM) uses the model portfolios for the selected investment strategies, as well as for client-specific investment needs to implement a single holistic investment solution for each individual client.