This is a summary of a session from the FRA’s 11th Annual Managed Account and UMA Summit that was held in September 2013 in NYC.
Moderator: Bill McFadden, U.S. Business Development, CGI
1. Centralize investment management processes before launching a UMA.
Schmitt explained that it would be easier for firms to launch a UMA if their investment management was centralized, since the advisors would already be used to outsourcing these decisions. Advisors are creatures of habit and prefer to sell products with which they are already comfortable, she said.
Brown Brothers made that decision a few years ago and it was a struggle, McDevitt reported. One important factor was communicating to their advisors that it was better for their clients to have a dedicated asset allocation team that could provide proprietary investment products along with third party mutual funds, he said.
According to Gibbons, PNC rolled out their UMA solution in late 2010 and they are now closing in on $4 billion in AUM. While much of their growth was mandate-driven (the stick), it was easier because they already had a centralized investment management and asset allocation infrastructure in place. Continue reading