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Separately Managed Account (SMA) |
Unified Managed Accounts from WealthADV |
| Diversification Across Multiple Asset Classes |
Requires placing assets with several SMAs.
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Can be achieved through one unified account.
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Client Preferences, pre-trade restrictions
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External managers cannot effectively accommodate client specific
customization.
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Restrictions are integrated into each trading decision for the
entire portfolio. |
Access to Managers
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Limited to managers available on sponsor platform and by investment
minimums of each manager.
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Strategies from both popular platform managers as well as smaller
boutique managers. Recommended managers can be easily added. |
Investment Discretion
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Your clients’ accounts are traded in “cookie cutter”
fashion by the external manager along with the multitude of other
accounts they manage.
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Your clients’ accounts are traded in accordance to your specific direction. |
Rebalancing, Contributions and Withdrawals
|
Challenging to coordinate across separate accounts and managers.
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Efficiently processed through a single, unified account. |
New Account Paperwork
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Separate set of paperwork required for each SMA.
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One set of paperwork for the unified Overlay account. |
New Accounts with Existing Securities
|
Time consuming process to determine which securities to place
with each manager.
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All existing securities are placed into the unified overlay account
and then evaluated against the composite overlay strategy. |
Risk Control
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Cannot effectively coordinate investment activities across managers. |
You manage the composite risk in the unified account. |
Tax Efficiency
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Limited ability with certain managers.
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Active tax management can drive trading decisions for the composite
portfolio to enhance after-tax performance. Avoid short term gains
and wash sales. Opportunistically harvest losses for tax purposes. |
Product Cost
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Includes sponsor and manager fees.
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Reduce product costs up to 50%, or more, with the savings flowing
directly to investment return and firm profitability. |
