The functionality of Unified Managed Accounts from Fiserv allows a program sponsor to offer their clients a wide variety of investment options within a single, unified platform, and provides all the necessary tools for successful overlay management.
As the separately managed account marketplace continues to evolve, the unified managed account (UMA) is moving to the forefront as the next generation in this evolution. The UMA is a product neutral platform that simplifies the delivery of multiple investment products, i.e., Separately Managed Accounts (SMAs), Mutual Funds, and Exchange Traded Funds (ETFs), into a single managed account environment. UMA platforms enable program sponsors to take a holistic approach to their investors’ total portfolio, and apply a range of solutions that combine a broad asset allocation plan using either a taxable or nontaxable account strategy.
UMAs and multiple strategy accounts represent one of the fastest growing segments in the SMA market, and APLSM from Fiserv has been supporting these types of accounts since April 2002. Investment Services from Fiserv is the industry leader and currently has over 40 firms utilizing its UMA functionality, with more than 115,000 accounts on the platform.
The APL system easily handles this innovative approach to portfolio management by leveraging the following functionality:
- Ability to trade Mutual Funds and ETFs
- Support for securitized Hedge Funds
- Overlay functions with customizable asset allocations
- Overlay tax-sensitive trading
- Multiple Overlay options – Active or Passive
- Processes and Interfaces supporting Active Third Party Overlay
- Total account and sleeve level performance
- Wash sale monitoring across sleeves
- Monitoring of security overlay across sleeves
- Sleeve Level and Overall Account View
Tax-Sensitive Trading
Tax-aware trading is a value-added feature of Overlay Management, as well as an important component for UMAs. Clients can rely on the UMA functionality to meet their tax-sensitive trading needs.
Tax-sensitive trading features in the UMA platform enable users to apply tax filters and check for wash sale violations when trading at either the total account or sleeve level. For accounts that trade the same security in multiple sleeves, UMA from Fiserv tax lot swapping ensures that the correct number of shares are sold out of the correct sleeve, while selecting the best tax lots available amongst all sleeves.
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