Adhesion Wealth Advisor Solutions announced the availability of the 3.0 release of the WealthADV Unified Managed Account (UMA) platform.
Enhancements revolve providing greater visibility and transparency for UMA-based investment programs and enhanced administrative efficiencies for advisors.
Until now, significant hurdles impeded the migration of client assets by advisors into UMAs, according to Adhesion.
These included lack of granular manager visibility upon compressing separate accounts into one. "While advisors clearly see the benefits afforded from UMAs , some advisors have resisted the approach due to their inability to evaluate and report on the performance of individual managers which comprise the UMA allocation. Manager/ sleeve level reporting for UMAs removes that issue," the company said in a release.
Adhesion also suggests that the disconnect of current TAMPs providing tax overlay management services from the advisor's core portfolio accounting and reporting operation is a "critical gap that has been largely overlooked by the industry."
Tax overlay management decisions are typically made in vacuum, with the advisors portfolio accounting system never updated to accurately match lots with those sold by the overlay manager. This causes taxable gain/loss information to be out of synch with the overlay manager and tax-aware rebalancing decisions to be subsequently compromised, Adhesion said.
"To address these hurdles we've introduced a state-of-the-art manager trade-tagging system that ensures all positions, down to the tax-lot level are associated with their respective manager, even when multiple managers hold the same security," Barrett Ayers, SVP product management said.
"As a result, not only do advisors now have the flexibility to monitor their UMA-based investment programs at the level of granularity they deem appropriate for their practice, but are able to maintain the integrity of the tax management and reporting they provide their clients," he added.
Enhancements to the Wealth ADV UMA platform include giving full visibility to holdings, activity and performance associated with each UMA manager/ sleeve; customizable client risk profile questionnaires; associating advisor-defined asset allocation strategies to client risk profiles; paperless workflow for enrolling client accounts and for changing UMA program attributes (e.g., model changes, manager hire/fire/reweights, account parameters); and tax lot matching between overlay tax management and the portfolio accounting/reporting platform.
Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio