Americas Best TAMPS 2024 - 13

2024 AMERICA'S BEST TAMPS
style and offered to the investor by a
sponsoring firm. A fee-based SMA
program utilizes multiple SMAs. A single
SMA can also form a single sleeve
within a UMA structure. In general, the
SMA approach differs from a mutual
fund because the investor directly owns
the securities-like individual bonds, for
example, instead of owning a share in a
pool of securities.
4. Unified Managed Accounts
A UMA is a single, fee-based account
that houses numerous investment
products within multiple separate
account sleeves. Management between
sleeves is determined by the overlay
process to gain tax and trading
efficiencies. This necessitates the wealth
advisor to manage the client relationship
on a platform optimized for UMAs. A
UMA is usually conceived as having
a single custodian, although some
platforms do aggregate across multiple
custodians.
5. Unified Managed Households
A UMH is a UMA-like relationship taken
to the next level by bringing together all
aspects of a client household's wealth
and not just the wealth of separate
individuals. UMH platforms approximate
the way a wealthy household thinks
about their wealth by enabling program
sponsors to take a holistic approach to
the total portfolio, and apply a range of
wealth management solutions. Assets
to be managed include:
* Qualified and nonqualified accounts
* Alternative investments
* Real estate
* Collectibles
* Oil and gas properties
* Limited partnerships
* Managed futures accounts
A UMH has a single registration,
and can aggregate across multiple
custodians. Many advisors consider the
UMH to be the ultimate advancement in
the managed account space.
MANAGERS AND PRODUCT
SELECTION
TAMPs using open architecture allow
financial advisors to offer a combination
of proprietary and nonproprietary
strategies for greater flexibility, better
investment options, and reduced
potential conflicts of interest.
TM
A broad array of investments is essential
for capturing assets from high-net-worth
individuals. The mix should include
mutual funds, ETFs, SMAs, securities
and alternative investments.
Overlay managers assist financial
advisors in model portfolio
implementation, investment
customization and tax optimization.
For platforms using a rules-based
overlay tool, tax and trading efficiency is
maintained without the input of another
expert, albeit at a lower cost than the
overlay manager model.
FEES
The range of TAMP fees can run from
85 to 280 basis points, depending on
the underlying complexity and cost of
the incorporated investments.
PERFORMANCE ATTRIBUTION
Advisors must be cognizant of how their
efforts stack up against predetermined
benchmarks. Benchmarks established
at regular intervals not only give clients
peace of mind, they relieve the advisor's
burden of " hoping for the best " for
their clients. Fortunately, several TAMP
WHAT TAMPS CHARGE
ACCOUNT TYPE
Mutual Fund Wrap
ETF Wrap
SMA
UMA
(using models)
UMH
INVESTMENT FEES
.5% - 1.5%
.1% - .25%
.5% - 1.0%
.4% - .6%
MANAGEMENT FEES
.5% - 1.5%
.5% - 1.0%
1.0% - 1.75%
.75% - 1.5%
Negotiable along lines of UMA, with modest
fees (.01% - .03%) for held-away assets
TOTAL FEES
.75% - 1.5%
.75% - 1.25%
1.5% - 2.5%
1.5% - 2.5%
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Americas Best TAMPS 2024

Table of Contents for the Digital Edition of Americas Best TAMPS 2024
