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Investor Economics

Retail Brokerage and Distribution Report Spring 2014

The discretionary road less traveled

Discretionary wrap program assets in aggregate, including internal and external separately managed accounts (SMA) as well as unified managed account (UMA) structures, have not enjoyed the near meteoric expansion enjoyed by advisor-centric fee-based programs since the 2008 downturn. The importance of a clear value proposition for clients and the need for scalable advice via discretionary management in any form, is giving pause for a rethink on the value of discretionary wraps in all their forms. This feature is focused on the emerging growth trends of discretionary wraps in today’s advisor-centric shift to fee-based. The feature examines the current role and positioning for the more sponsor-directed approach of SMAs and, in particular, the more broadly focused UMA delivery solution.

This is a an important read for sponsors contemplating their next step in the delivery of fee-based solutions as well as product manufactures examining their role in the evolution of fee-based practice management.

Report Information

  • Tags: distribution channels, intermediation, wealth management

  • Date Posted: July 16, 2014