A unified managed account (UMA) is a type of investment account that combines the features of a traditional mutual fund with the personalized service of a financial advisor. UMAs are typically offered by third-party asset management platforms (TAMPs), which provide financial advisors with the tools and resources they need to manage their clients’ assets.
UMAs offer a number of benefits for both financial advisors and their clients. For advisors, UMAs can help to save time and money by providing them with a turnkey solution for managing their clients’ assets. For clients, UMAs can offer the benefits of professional investment management without the high fees typically associated with traditional hedge funds or private equity funds.
UMAs work by pooling the assets of multiple investors into a single account. The assets in the account are then managed by a professional investment manager who is responsible for selecting and rebalancing the investments in the portfolio. The investment manager is typically selected by the financial advisor who is responsible for the account.
UMAs typically offer a variety of investment options, including stocks, bonds, and mutual funds. The investment options that are available in a UMA will vary depending on the TAMP that is offering the account.
There are a number of benefits to using a UMA. Some of the benefits include:
- Professional investment management: UMAs offer the benefits of professional investment management without the high fees typically associated with traditional hedge funds or private equity funds.
- Cost savings: UMAs can help to save financial advisors time and money by providing them with a turnkey solution for managing their clients’ assets.
- Flexibility: UMAs offer a variety of investment options, which gives financial advisors the flexibility to meet the needs of their clients.
- Transparency: UMAs are typically more transparent than traditional investment products, which allows financial advisors to provide their clients with more information about the investments in their portfolios.
UMAs can be a valuable resource for financial advisors. They can help advisors to save time and money, improve the quality of their services, and reduce their risk.
