Securities America hopes to make it easier for its advisors to convert to fees by allowing them to combine separately managed accounts (SMAs) and mutual fund wraps into one Unified Management Account.
Envestnet a leading provider of wealth management solutions to independent financial advisors, estimates that by 2013, an estimated $327 billion in client household assets will be managed through UMAs.
“UMAs were originally designed as a way to bring multiple separate account managers into one account,” said Dennis King, senior vice president of business development for Securities America Advisors. “Working with Envestnet, Securities America has taken the UMA strategy one step further by developing a UMA that brings mutual fund wrap strategists into one account. No other firm does that.”
Advisors can include more than one SMA or mutual fund portfolio managers within a UMA or create their own models with options on the Securities America platform.
UMAs require only one client registration, one account, one set of paperwork and one 1099. Portfolios and investment policy statements -- customized for a client -- can be created online in about 10 minutes. Advisors have online access to rolled-up reports, updated daily, on assets at a household level, regardless of the registration or money manager.