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Quality Money Managers
Once an asset allocation strategy is determined, your Wealth Strategist will choose managers to implement that strategy. This could occur in a single, multi strategy account or in several separately managed accounts.
In the institutional investing world, once the institution has an asset allocation, it hires different investment managers to make the specific investments in each asset class. Usually an investment committee will manage this portfolio of money managers over time and make changes when managers fail to perform or the needs of the institution change. WrapManager has been providing a similar service for individual investors for over eight years.
Institutional investors have long known about private money managers and the investment strategies they provide. Until recently, individuals could only get access to these managers if they had millions of dollars to invest. Through WrapManager, investors with as little as $500,000 can get access to these institutional money managers.
Investment Restrictions
Managed accounts are similar to mutual funds in many of the advantages discussed above. For many investors, managed accounts can offer several important advantages over mutual funds. One of these is customization. If you own a mutual fund, you cannot restrict what the fund manager will buy. Your mutual fund shares contain the same investments as those of every other owner of the fund.
Customization in managed account can involve restricting certain types of investments, which would mean that the investment manager would not buy certain investments in your account. For example, you could restrict the manager from buying tobacco or alcohol stocks, or limit your investments to stocks of socially or environmentally conscious companies – even green investing. You can also restrict specific securities. For example, if you are an executive of XYZ Corporation and cannot buy shares of XYZ, this type of restriction can often be accommodated by a SMA investment manager.
While restricting managers may impact their performance, if you have strong feelings regarding social responsibility, the environment or perhaps even faith-based values, you can implement those beliefs through a SMA. Restricting an account does not mean that you cannot have a change of heart down the road. You can impose or remove restrictions at any time.