The FundQuest Unified Managed Account
U N I F I E D M A N A G E D A C C O U N TA Simple and Powerful
Managed Account Solution
SMA Strategies, Mutual Funds, ETFs Overlay Portfolio Management Dynamic Investment Selection Sales & Operational Support Quarterly & On-Demand Reports Tax Management Ongoing Due Diligence &
Rebalancing Client-Specific Customization FundQuest UMA Research Technology Administration
A Powerful Combination of Simplicity
and Sophistication
FundQuest’s Unified Managed Account (UMA) is a professionally managed portfolio that offers multiple investment styles and multiple investment products within a single coordinated account. FundQuest was one of the first firms to offer a comprehensive UMA and now offers a third generation of UMA technology and services. Advisors have recognized the UMA’s benefits and, according to the Money Management Institute, the number of clients with UMAs has grown rapidly.
Investment professionals and their clients benefit from:
•The simplicity of a single managed account to coordinate a diverse set of carefully researchedmutual funds, ETFs, and separate account strategies • The sophistication of a diversified portfolio, including multiple SMA
strategies,within a $250,000 Unified Managed Account (minimum account size)
• Portfolios that balance return objectives and volatility considerations based on an individual client’s risk tolerance and time horizon
• Increased diversification of investment strategies because typical SMA (separately managed account) minimums do not apply inside FundQuest’s UMA • Coordination of trading activity andrebalancing performed by FundQuest • Customization via exclusions of specific securities
•Tax sensitive portfolios and tax harvesting opportunities
• Transition services to plan and implement the transfer of existing assets • Reduced paperwork and maintenance versus multiple product-specific accounts • Advanced UMA technology to support efficient account administration
FEATURES BENEFITS
Multiple investment products and styles within a single account
Broadly diversified portfolio with carefully selected mutual funds, separate account strategies, and ETFs
Account customization
Advisor can personalize an investor’s portfolio by restricting specific securities
Comprehensive overlay portfolio management
FundQuest coordinates account activities across entire UMA portfolio to manage securities transactions efficiently, avoid conflicting manager recommendations and wash sales, and provide parameter-driven rebalancing
Advisors gain time to focus on growth through one-on-one client service and advice
Tax management opportunities
Manage tax exposure through tax sensitive models and execution of tax harvesting requests
Single account administration
Reduced paperwork, reporting, and cross-product coordination (versus traditional multiple account structure)
Dynamic in-depth investment selection and monitoring
In-depth quantitative and qualitative research by FundQuest’s investment management and research team to identify best-of-breed investments
Rigorous analysis provides diversification across asset classes and across a wide universe of domestic and international style categories
Advanced proposal technology
Fast on-demand investment proposal technology with integrated profiling, research, and portfolio diagnostics to generate client-specific UMA recommendations
Advanced
quarterly and online performance reporting capabilities
Sophisticated but easy to understand quarterly performance reports generated by FundQuest On-demand 24/7 web access to client portfolio information
Sales, transition, and operational support
Experienced national team provides training, proposal support, account maintenance, and transition planning and implementation to move assets to UMA
Advanced technology and back-office administration
Proposal Automation, Diagnostic Tools, and Performance Reports
Overlay Portfolio Management Services and Technology
FundQuest’s overlay management services coordinate the UMA portfolio across the underlying investment products.These services leverage FundQuest’s cutting edge UMA technology, back-office quality processes, and investment management expertise to:
• Manage portfolio transactions efficiently and avoid buy/sell/hold manager instruction conflicts
• Process tax harvesting requests • Provide wash-sales oversight
• Implement client customization requests
• Rebalance portfolios to maintain the target asset allocation
Overlay Portfolio Management Processes
Coordination of managers and
styles across: ETFs, mutual funds, & separate account
strategies
Strategic Asset Allocation Tactical Category Allocation
Investment Selection
Ongoing Monitoring & Rebalancing
Quantitative
Analysis QualitativeAnalysis
Qualitative Analysis
Understand who and what contributed to past performance by evaluating:
• Experience — investment
team qualifications and depth
• Fees —manager and
trading costs
• Buy/Sell Discipline —
buy and hold or active trading
• Philosophy —does the
manager’s process support it
• Compliance — reporting
and controls
Quantitative Analysis
Using both proprietary and external tools, managers are evaluated against benchmarks and peers on criteria including:
• Risk —traditional alpha and beta, & standard deviation
• Performance —how managers perform in up & down markets over time periods of 1, 3, 5, 10, 15 years, and since-inception • Sector Weighting —neutral or biased • Security Concentration —over or
under diversified
• Style Consistency —adherence to investment philosophy and process
• Portfolio Attribution —what is driving the returns
Dynamic Investment Selection and Recommendation Process Strategic Asset Allocation
The foundation of FundQuest’s investment process is asset allocation – the amount of a portfolio allocated between the broad asset classes of stocks, bonds and cash.
FundQuest’s diversified UMA portfolios can help to mitigate the ups and downs of market performance, reduce risk, and potentially enhance portfolio returns.
Tactical Category Allocation
FundQuest further diversifies each UMA portfolio’s allocation by style and market capitalization. Both stock and bond allocations may be diversified geographically via international securities.
In-Depth Quantitative and Qualitative Analysis
FUNDQUEST
Experience and Innovation: Founded in 1993, FundQuest is the best
partner to help advisory firms grow their business. FundQuest provides open architecture investment services and the most innovative advisor productivity tools to advisory institutions
Best Services and Support: FundQuest is the most flexible service provider
with the best overall support services for both management and advisors
The Choice of Leaders: FundQuest platforms are available to a national
network of 49,000 financial advisors through more than 130 institutions including RIAs, insurance companies, independent broker dealers, banks, and trust and wealth management firms
Investment Management Expertise: FundQuest’s investment management
team has more than 48 analysts, in its combined US and European operations, who perform in-depth quantitative and qualitative investment due-diligence
Operational Scale: FundQuest has $64 billion under management and
administration in its combined US and European operations, and is part of BNP Paribas, one of the world’s largest financial services firms
Services are offered in the U.S. through FundQuest Incorporated, a Registered Investment Advisor, located at One Winthrop Square, Boston MA 02110
For more information please contact FundQuest
Call: 888.253.9169
Visit: www.fundquest.com/usa Email: [email protected]
A Strategic Partner to Accelerate Your
Business Growth
F O R I N V E S T M E N T P RO F E S S I O N A L U S E O N LY. N OT TO B E D I S T R I BU T E D TO T H E G E N E R A L P U B L I C .
©FundQuest Incorporated 2009. The FundQuest name and logo are registered trademarks of BNP Paribas. V4010509 FundQuest’s UMA Programs offer investment professionals potential tax planning opportunities for their clients. However, FundQuest does not provide tax advice to investment professionals or their clients. Investment professionals and their clients are advised to rely on tax forms and related information provided by the custodian of assets for tax reporting purposes and should seek a qualified tax professional for specific advice.
