Bank of America has introduced a unified managed account program designed for its wealthy and ultra-wealthy clients.
The program offers clients more customization through multiple, institutional-level separate account managers, exchange-traded funds, and mutual funds in one account that uses an active overlay portfolio manager.
The fee-based program expands Bank of America's unified managed account offerings, building upon the introduction last year of consulting services portfolio strategies — managed programs for affluent brokerage clients. Assets under management for all fee-based investment advisory products administered by Bank of America's consulting services group surpassed $37 billion at Aug. 31.
Portfolio managers can use the new unified managed account program to build customized asset allocations and then construct portfolios using a combination of separate account investment managers. Wealthy clients have access to more than 70 investment managers, comprising a range of asset classes and investment styles, including large-cap, small-cap, mid-cap, international, global, fixed-income, and high-yield.
In many cases, the accounts will be managed for tax efficiency by the overlay manager. Most investment managers that participate in Bank of America's separate account programs have agreed to participate in the new unified managed account platform, the company said.
The new unified managed account program is to be rolled out to all clients of U.S. Trust, Bank of America Private Wealth Management in the next few months, beginning with legacy Bank of America Private Bank clients.