Fortigent launches unified managed account program

Thomas Coyle

10 June 2008

Firm links with Parametric to give wealth managers bespoke-platform option. Wealth-management platform outsourcer Fortigent has launched a unified managed account program for RIAs and banks that features overlay management by tax-managed investment-product provider Parametric.

UMAs are fee-based, single-account investment products that typically feature combinations of separately managed accounts, mutual funds and ETFs. Overlay management is the process of aligning trading activity, managing cash flow and enhancing the overall tax efficiency of multiple-sleeve investment portfolios.

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"Many advisors want to control the investment process and build client-specific products," says Fortigent's CEO Andrew Putterman. "However, they underestimate the infrastructure and financial commitment required to serve as a UMA sponsor."

Fortigent's and Parametric's answer to this dilemma is its Integrated Tax-Managed Account , a UMA program that gives wealth managers "access to institutional-quality managers, comprehensive pre-tax and after-tax reporting, and the flexibility for advisors to customize model portfolios to suit their target market," according to Steve Kauffmann, head of Parametric's OverlayOne overlay-management group.

Using ITMA, "individual firms will be able to customize their UMA portfolios to their own specifications, but they won't need to work through the logistics and operational issues of sponsoring their own program," adds Kauffmann.

Rockville, Md.-based Fortigent is a subsidiary of Palm Beach, Fla.-based Lydian. It has around $20 billion in assets on its platform.

Seattle-based Parametric is a subsidiary of Boston-based Eaton Vance. It manages about $30 billion -- including about $7 billion on its overlay platform -- for high-net-worth individuals, families and institutions. -FWR

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