SMA. The Smarter Way.
Open-architecture overlay vs. traditional open-architecture SMA
In a traditional SMA program, discretion over an investor portfolio—and responsibility for customization and tax management—is divided among multiple third-party managers. This approach requires splitting an investor’s portfolio into multiple sub-accounts. The process of opening, closing and rebalancing these sub-accounts is cumbersome, expensive and operationally inefficient.
Open-architecture overlay provides a simplified architecture that eliminates the need for multiple levels of communication, the hassles of account reconciliation, and the complex opening/closing procedures traditionally associated with separate accounts.