Another big broker network is adding unified managed accounts (UMAs) into its larger advisory practice, following in the footsteps of LPL -- not to mention Fidelity and E*Trade.
UMAs work like separately managed accounts, but can incorporate multiple asset classes -- individual stocks, bonds, ETFs, mutual funds, alternatives, even SMAs -- into the same portfolio structure.
This makes them interesting to firms like Edward Jones, which are noted giants in the mutual fund selection universe, but have yet to find a way to integrate the fund business into portfolios that are more heavily dependent on SMAs and individual securities.
LPL moved into the UMA space a few weeks ago by buying vendor Concord Wealth Management. And Fidelity and E*Trade both launched UMA programs for their affiliates back in January.
Vestmark will provide the UMA platform itself and Managed Portfolio Advisors will populate it with an assortment of best-of-breed investment model portfolios.
Edward Jones advisors will then be able to "overlay" those portfolios on their own clients' assets to duplicate those ideas in their own books of business.