Chapter 23: Fee Based Accounts

Front 1

discretionary account

Back 1

a securities account where the client has given specific written authorization to a partner, director or qualified portfolio manager to select securities and execute trades for him.

Front 2

fee based accounts

Back 2

a type of account that bundles various services into a fee based on the clients assets under management, for example, 1%-3% of clients assets.

Front 3

managed accounts

Back 3

an account whereby a licensed portfolio manager has the discretion to decide and execute suitable investment decisions on behalf of clients.

Front 4

multi disciplinary accounts

Back 4

fee based accounts that are an evolution of separately managed accounts. with multi-disciplinary accounts, seperate models are combined into one overall portfolio model in a single account.

Front 5

multi manager accounts

Back 5

a type of fee based account that offers clients and their advisors more choice in terms of product and services. often, clients are aligned with two or more portfolio models and each portfolio model is a component of the clients greater diversified holdings.

Front 6

mutual fund wraps

Back 6

are established with a selection of individual funds amanged within a client account. mutual fund wraps differ from funds of funds. the client holds the acutal funds within their account, as opposed to a fund that simply invests in other funds. in most cases, a seperate account is established for the client and the selected funds are held inside that dedicated account.

Front 7

overlay manager

Back 7

the overlay manager works with advisiors in servicing clients. this is not a referral but a partnership, in which the advisor retains the clients assets. the service incorporates the exisiting trusted relationship of the advisor, whom the client has become comfortable dealing with.

Front 8

private family office

Back 8

an extension of the advisors client servicing approach. in this approach, instead of having only one advisor, a team of professionals handles all of an affluent clients financial affairs within one central location.

Front 9

seperately managed accounts

Back 9

a managed product structure whereby individual accounts are created for each investor. in either case, an investment manager is guided by an investment mandate.

Front 10

single manager accounts

Back 10

a type of fee based account that is directed by a single portfolio manager who focuses considerable time and attention on the selection of securities, the sectors to invest in and the optimal asset allocation.

Front 11

unified managed account

Back 11

a type of fee based account that includes the same benefits as multi disciplinary accounts. enhancements include performance reports from the respective sub-advisors, outlining distinct models contained within the single custody account.