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Submitted by: Ray J. Shreder
Mr. Shreder began his professional investment career in 1984 and has held senior investment consulting positions with several large Wall Street investment firms prior to founding SICG.
There is a new investment kid on the block. Actually, the kid has been around for a couple of years now, but not available everywhere. The kid has also matured quite nicely, thanks to today’s advanced technology. The kid is a type of investment account that is designed to help reduce investment risk and enhance portfolio performance potential, all with exceptional tax control and reduced cost. This kid is called the Unified Management Account, or UMA. The UMA is a single, professionally managed investment account that integrates the management of multiple dissimilar investments, including unaffiliated Professional Money Managers, Mutual Funds, Exchange Traded Funds, Real Estate Investment Trusts and Alternative Assets. A "Dream Team" of the industry's top professional money managers and investments, plus an overseeing master manager, all working together in one convenient account. Unlike traditional, and highly inefficient multiple stand-alone investment accounts, the tax friendly UMA generates just one all-inclusive quarterly progress report and one year-end 1099.
Some UMAs also offer sophisticated risk control features such as Tactical Rebalancing, which allows the overseeing manager to reduce equity exposure to cash when forward looking market indicators are negative.as-well-as percentage drift rebalancing, which rebalances the portfolio whenever specific components violate a predetermined value. This is unlike commonplace time-based rebalancing programs that rebalance on a fixed schedule. Unfortunately, the market is unually not on the same time schedule.
In addition, research indicates that actively managed portfolios, such as mutual funds, fail to outperform their underlying index for most asset classes. The UMA is structured to utilize passive index funds or exchange traded funds for the core holdings and active management for the several assets classes where active managers have consistently added significant value.
The UMA is a total wealth management solution available today, with versions starting at just $250,000.
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