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.
Are You With The Right UMA?
By Adhesion Wealth, An AssetMark Company
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
By Adhesion Wealth, An AssetMark Company