Commonwealth Releases Adviser-Directed UMA Program

The firm said it will now provide access to SMA features, including additional managers, simplified rebalancing, all-inclusive pricing, and a proposal system. Additionally, the new UMA option will provide mass-affluent clients with a single account strategy utilizing professional money management.

The adviser-directed UMA brings together the potential tax efficiencies associated with SMAs, while allowing advisers to actively participate in the portfolio construction process, the company said. “It’s a solution that advisers can effectively deploy across multiple client segments, yet they can still implement a degree of customization at the portfolio level,” said Greg Gohr, director of investment and advisory products and services at Commonwealth.

With benefits typically afforded to institutional investors, Commonwealth said the UMA approach can provide a single custodial account for all investments, allowing advisers to construct a client portfolio without having to choose between SMAs and pooled investment vehicles. SMAs, mutual funds, and exchange-traded funds (ETFs) can be consolidated into a single account structure.

Clients utilizing the SMA platform will now have access to additional small- and mid-cap asset classes, simplified rebalancing across investment strategies, and the elimination of ticket charges for securities liquidation, according to the firm.