UMAs are single-account combinations of separately managed accounts , mutual funds and exchange-traded funds. Overlay management is the process of aligning trading activity, managing cash flow and enhancing the overall tax efficiency of multiple-sleeve investment portfolios.

Advanced features

"We wanted to launch a program that utilizes all of the most advanced features and benefits that a UMA can offer," says Davidson's director of managed accounts Cory Custer. "In partnership with Placemark, we feel that we can now offer our clients a best-in-class program, giving them better diversification, superior investment options, and higher degrees of customization and portfolio personalization."

Davidson advisors can use the program to build portfolios for their clients using a roster of separately managed account managers including Alta Capital Management, Ashfield Capital Partners, Johnson Asset Management and Riverbridge Partners plus an array of mutual funds and ETFs. Davidson says the program will soon include a fixed-income component and "additional investment products" as well.

Placemark assumes discretion on the accounts. Advisors can use Placemark's workstation to profile clients, produce proposals, "configure investment solutions," and trigger account openings and various maintenance processes.

Custer says he expects the new UMA program -- which has an investment minimum of $250,000 -- will become Davidson's "flagship fee-based platform, and the focus of future development, advisor education, and asset raising."

Davidson, which manages about $20 billion for its clients, provides brokerage, capital markets, asset-management, trust and wealth-management services. It has about 50 offices in 16 states, most of them west of the Mississippi.

Dallas and Wellesley, Mass.-based Placemark manages about $6.6 billion across 12,000 accounts according to its latest ADV filing with the Securities and Exchange Commission. Its clients include Smith Barney, RBC Dain Rauscher, Prudential and HSBC. -FWR

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