originally posted on PFIadvisors.com

Sean Mullen, who has experience in both dual-contract and single-contract environments, points out that regardless of an RIA’s size and investment allocation to a particular manager, single-contract SMAs offer benefits to both advisors and clients that should be considered.  Sean states, “With single-contract SMAs/UMAs, all investment managers are placed into one custodial account number and the RIA’s reporting and trading software allows each manager to act independently from one another through various sleeves of the portfolio.  Firing one manager and hiring another within the same account is as simple as a few clicks on the platform provider’s interface.  In addition, by hiring the platform provider, one custodial account number is granting the client access to potentially thousands of SMA portfolios and strategies with lower account minimums, and the platform provider will handle trading for all these strategies.  This process, defined by automation and ease, allows advisors to offer a broader array of investment opportunities to more of their clients.”

READ THE FULL ARTICLE: https://pfiadvisors.com/dual-contract-smas-vs-single-contract-smas-which-is-best-for-you-and-your-clients/