A though-provoking and well-researched article about a new UMA program launched by Lincoln Financial was just published today on GateKeeperIQ. GatekeeperIQ is a comprehensive resource covering the people and processes that drive decision-making on large retail investment platforms. The article, written by Managing Editor Hannah Glover, has some interesting details about the new UMA program:
Lincoln Financial has rolled out a model-only unified managed account (UMA) that offers a lower investment minimum than an existing separately managed account program and provides advisors with greater flexibility and investment product choice, according to a December 20 regulatory filing.
The new Multiple Manager Strategy Portfolio, which is run by Boca Raton-based turnkey provider Independent Portfolio Consultants and offered through Lincoln’s Managed Assets Program (LMAP), also has lower overall client fees for equity and balanced accounts, compared to the SMA version, regulatory filings show.
Dropping minimums and making it easier to diversify assets within a single account could spur growth in the program at a time when distributors seek to grow their fee-based businesses, says Craig Iskowitz, managing director of Ezra Group, a wealth management technology consulting firm in East Brunswick, N.J. “Everyone is looking to attract more high-net-worth clients,” he says. “Lowering fees and lowering minimums are great tools to expand the attractiveness of these programs to advisors.”