Edward Jones Adds UMAs To Its Advisory Platform

Monday, May 16, 2011 23:21
Edward Jones Adds UMAs To Its Advisory Platform

Tags: independent broker-dealers | portfolio construction | Portfolio Management Software

Another big broker network is adding unified managed accounts (UMAs) into its larger advisory practice, following in the footsteps of LPL -- not to mention Fidelity and E*Trade.

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UMAs work like separately managed accounts, but can incorporate multiple asset classes -- individual stocks, bonds, ETFs, mutual funds, alternatives, even SMAs -- into the same portfolio structure.


This makes them interesting to firms like Edward Jones, which are noted giants in the mutual fund selection universe, but have yet to find a way to integrate the fund business into portfolios that are more heavily dependent on SMAs and individual securities.


LPL moved into the UMA space a few weeks ago by buying vendor Concord Wealth Management. And Fidelity and E*Trade both launched UMA programs for their affiliates back in January.


Vestmark will provide the UMA platform itself and Managed Portfolio Advisors will populate it with an assortment of best-of-breed investment model portfolios.


Edward Jones advisors will then be able to "overlay" those portfolios on their own clients' assets to duplicate those ideas in their own books of business.







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