Author Archives: Haley

Are You With The Right UMA Partner?

Unified Managed Accounts (UMAs) are sold with key list of advantages.  But if you don’t have the right underlying technology or managed account partner, you can’t seek to achieve all of these advantages and you may end up with some pretty tough challenges, and sometimes some pretty disappointed and frustrated clients, right?  So while it’s not exactly flashy to talk about true sleeve tax-lot accounting….it’s critical to delivering the client outcomes you really want to create for your clients.  

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 can’t take shortcuts. Some people call it old school, we call it experience. And we think you deserve better. 

For more on this topic check out our blog, Understanding the Impact of Two Different Approaches to UMA

FOR PROFESSIONAL USE ONLY. Investing in securities is subject to inherent investments risks, including, the potential loss of principal. Adhesion Wealth does not provide personalized investment or tax advice. UMAs are not suitable for all investors and should be evaluated for suitability by their Financial Professional prior to investing. UMAs do have certain limitations that must be overcome, such as, the portfolio can’t be directly moved over unless a manager is in the same sleeve of the new firm’s UMA and would need to be held outside the UMA. 

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Adhesion Wealth Enhances Integrated Platform Tools, Further Strengthening Connections Between Advisors & Managers

CHARLOTTE, N.C., May 21, 2019 /PRNewswire/ — Adhesion Wealth™(Adhesion), a Vestmark company, continues to expand its innovative suite of tools to connect advisors and asset managers. The firm has recently completed the roll-out of Adhesion Manager Communities, an enhanced set of capabilities providing both registered investment advisors (RIAs) and asset managers with intuitive analytics, communication, and marketing capabilities to allow the two communities to foster stronger connections.

“Our unified platform is designed to help advisors and managers do what they do better and faster, in order to improve outcomes for themselves and the investors they serve,” said Barrett Ayers, President of Adhesion Wealth. “The latest updates to our platform can bring advisors and managers closer together—fostering actionable insights which make it easier to tailor and deliver sophisticated investment solutions.”

Adhesion Wealth’s Manager Communities dashboard provides RIAs with innovations for:

Managers of Interest: Adhesion Wealth provides advisors with a product comparison dashboard to help analyze and identify opportunities to utilize model portfolios in lieu of higher-cost products. Model portfolios often have lower all-in costs than many of their traditional packaged product counterparts. Advisors can utilize the dashboard to identify lower-cost opportunities that have similar investment objectives and attributes.

Communication: Advisors can communicate directly with managers or send blind requests for proposals (RFPs) expressing preferred model criteria to multiple managers through the Adhesion Wealth platform.

Due Diligence: The dashboard increases visibility for manager research, including the latest contributed media content, whitepapers, and marketing materials published in the Adhesion eXchange. The dashboard highlights news articles about managers and their products alongside Adhesion’s weekly manager spotlight webinar, which provides advisors with insight into a manager’s investing philosophy and tactics.

Adhesion Wealth has also introduced new features in its dashboard for managers to enable them to foster stronger connections with advisors and grow their businesses, such as:

Product Insight: Managers can utilize their Adhesion Wealth dashboard to track asset flow growth, wholesaler performance, and model trend data. Managers can also monitor advisor usage for each model and sleeve through proposals generated for both clients and prospects.

Marketing Intelligence: Adhesion Wealth provides click data for managers to understand which products and marketing materials have made the greatest impact. Weekly manager spotlight webinars offer managers the ability to present their investing philosophy and tactics to the Adhesion Wealth network.

Communication Portal: Managers are able to communicate and receive RFPs from Adhesion Wealth network firms and can respond directly through the Adhesion Wealth platform.

To learn more about the enhancements to the Adhesion Wealth platform, please visit: http://www.adhesionwealth.com/integrated-solution/index.shtml 

About Adhesion Wealth:

Adhesion Wealth™ enables advisors to easily provide separately managed account (SMA) and unified managed account (UMA) portfolios to investors. The Adhesion Wealth UMA/SMA chassis empowers advisors to bring highly-scalable, flexible, and customized wealth management solutions designed to enable them to deliver better investor outcomes.

Adhesion Wealth™ is a wholly-owned subsidiary of Vestmark, Inc. Vestmark enables financial institutions and advisors to efficiently manage and trade their clients’ portfolios through an innovative software as a service (SaaS) platform, VestmarkONE®. For more information, call (888) 295-8351 or visit www.adhesionwealth.com.

About Vestmark:

Vestmark enables financial institutions and advisors to efficiently manage and trade their clients’ portfolios through an innovative software as a service (SaaS) platform, VestmarkONE®. Financial institutions and advisors use Vestmark’s dynamic suite of portfolio and practice management tools and services to build customized solutions that meet their business needs and help to improve outcomes for clients.

Founded in 2001 and headquartered outside of Boston, Vestmark is a trusted partner to some of the largest and most respected players across the wealth management industry. More than $1.3 trillion in assets and 4 million accounts are currently managed on the VestmarkONE platform. For more information about Vestmark’s solutions, call (781) 224-3640, email inquiry@vestmark.com, or visit www.vestmark.com.

Media Inquiries:

JConnelly for Adhesion Wealth/Vestmark

Laura Simpson

(973) 850-7319

lsimpson@jconnelly.com

SOURCE Adhesion Wealth

Related Links

http://www.adhesionwealth.com/

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Price Is Only an Issue in the Absence of Value

Advisors have been pelted for decades with accusations of perceived high cost like, “You charge too much”, or “Why should I pay you a commission when I can get a no-load fund?”, or “Your fee is five times higher than a robo advisor charges.”  The hard, cold fact is that the all-in cost of making investments has come down, in steps, for the same period of time that high-cost accusations have been thrown and advisors are left to justify their professional fees.  Let me take you back a few years.

My first mutual fund trade as a new broker at Merrill Lynch in 1985 was for the American Capital Pace Fund.  Part of my presentation addressed the advantage of only paying a one-time commission of, wait for it, wait for it… 8.5%!!  That number is mind-blowing today but 34 years ago, it was the norm.  A few years later, most fund companies lowered their equity fund loads to 5.75%.  Brokers went nuts but gradually accepted 5.75% as the new norm.

The discussion those many years ago was based purely on cost and had nothing to do with value.  Slowly, as fee-based platforms entered our world, the discussion shifted to what an investor would receive for fees paid.  I remember a meeting I had in my days as a product wholesaler.  A twenty- something IBD rep with two years in the business was excited to show me his fee menu.  I have long forgotten the numbers but I will not forget the dismay I felt when I read his menu.  He offered three levels of service with more client interactions at each level.  Among other line items, financial plans were discounted and some hourly fees were waived at the highest level.  The only reply I could muster when he asked what I thought was, “What percentage of clients are choosing each level?”  He answered that almost everyone chose the lowest level of cost.  Like Communism, his menu worked perfectly in theory but was horrible in practice.  Why?  His menu lacked the single most powerful factor in any discussion about fees: THE PERCEPTION OF VALUE!

I know you have heard it before: Be valuable to your clients.  I also know that honestly connecting your value to the fees you charge is a blood pressure raising exercise.  Check out how Joe Duran, CEO of United Capital, so eloquently frames the discussion.  As I read the article, I was reminded of another IBD rep who perfectly figured out value vs. cost.  She was in a small midwestern city fifty miles from a metropolitan area.  When interviewed by an industry magazine after having reached production of $1MM in a year, she professed to not knowing what her paycheck would be when her commission payout was deposited.  I asked her how that could be, to which she replied that she never considered what she would be paid when recommending investments to her clients.  Her only focus was to put her clients in the best position to meet their goals.  Sometimes that meant she earned nothing but trust and respect.  In a town of that size, everyone knew her as trustworthy and respected.  Cost was not an issue because the perception of value was enormous.

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