Are You With The Right UMA?

Written by Adhesion Wealth | Jul 9, 2024 5:22:33 PM

Unified Managed Accounts (UMAs) come with a key list of advantages. But if you don’t have the right underlying technology or managed account firm, you can’t seek to achieve all of these advantages and you may end up with some tough challenges, and possibly disappointed and frustrated clients. While it may not be flashy to talk about true sleeve tax-lot accounting, it’s critical to delivering the client outcomes you want to create for your clients.

Have you found yourself experiencing some of these challenges and wondering if you are with the right UMA?

Inability to support fixed-income or dually managed (hybrid) models
Segregating cash amongst client cash, manager cash and cash pending withdrawals that are not partitioned and managed independently
Dividends are not posted back to the sleeve in which they originated
Manager Sleeve performance is inaccurate and varies significantly across clients
Difficulties changing managers in a UMA. Selling and repurchasing overlapping security
Inaccuracies around corporate actions
Meaningful trade execution variance for the same trade across multiple custodians
Inaccurate tax management results or limited tax management capabilities
Insufficient coverage of your asset managers
Challenges enrolling and transitioning accounts to the platform

Most of these issues are due to a platform’s inability to tag and partition tax lots. It takes time and experience to build a platform that handles and partitions a UMA properly. You cannot take shortcuts. Some people call it old school, at Adhesion Wealth, we call it experience.

C24-21005 | EXP 3-31-2026

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