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Why Managed Acounts

Separately Managed Accounts (SMAs) are becoming a central part of financial advisers’ portfolio implementation toolkit.

According to the June 2017 IMAP FUM Census, there was approximately $47 billion in funds under management held within managed accounts. The rapid rate of growth in managed account is expected to continue as financial advisers seek an efficient portfolio implementation vehicle allowing them to focus on their core advice value proposition and spend more time with clients.

For financial advisers, the key benefit is greater efficiency, as there is no requirement to generate a Record of Advice (ROA) when providing an SMA solution.

SMAs enable you to:

Reduce the costs (and time) associated with portfolio implementation

Spend less time spent on paperwork

Access professional model portfolios or tailored solutions

Enhance the value of your financial advice offering

Enhance the value of your financial advice

Access to professional portfolio construction expertise

The investor can leverage the model manager’s investment strategy and portfolio construction expertise.

Transparency of assets within the SMA

SMAs are well suited to investors who value the transparency and flexibility of direct ownership but lack the time or expertise for day-to-day management.

Beneficial ownership of underlying assets

The end-client is the beneficial owner of the shares, meaning their portfolio is portable (it does not trigger a capital gains event when transferred into or out of an SMA structure).