Stephen D. Gresham & Arlen S. Oransky 
The New Managed Account Solutions Handbook 
How to Build Your Financial Advisory Practice Using Managed Account Solutions

Industry experts share their insight and tell you why:

Unified managed accounts represent the future of the managed

money industry.

‘No other platform offers so many options and can be customized to
meet the needs of so many different types of investors, ‘ says one
of the nation’s most prominent money managers. ‘We are able to
address a wide variety of investment needs with a single product.’
(Chapter Mutual fund wrap accounts are enjoying a resurgence in
popularity.

‘With mutual fund advisory accounts, advisors can develop a
consolidated strategy for their clients utilizing mutual funds, ‘
explains one top executive at a leading investment bank. ‘Investors
know that proper asset allocation produces better results.’
(Chapter 3)

Exchange-traded funds have exploded in popularity with

clients and advisors.

‘ETFs have changed the landscape by offering financial advisors a
new way to diversify their clients’ portfolios, ‘ says the national
sales manager of one of the world’s largest ETF providers.
‘Advisors can fully diversify across all asset classes.’ (Chapter
4)

Client demand is fueling the growth of alternative
investments.

‘Larger clients are asking for these types of investments, ‘ says
one director of investment consulting solutions at one of America’s
largest banks. ‘Diversification to minimize risk is the key
incentive for adding alternative investments to a portfolio.’
(Chapter 4)

They’ll also teach you how to:

* Determine if managed account solutions are right for you, your
practice, and your clients

* Transform your financial advisory practice into a wealth management
business

* Differentiate yourself from other advisors

* Develop a recurring revenue stream that will enable you to grow
your business

* Attract new clients and capture additional assets from existing
clients

* Conduct successful client meetings and host seminars that get
results

* Position yourself as a provider of managed account solutions and
partner effectively with other advisors, allied professionals, and
the media

Table of Content

Foreword Christopher L. Davis vii

Preface ix

Acknowledgments xi

Chapter 1 The Evolution of Managed Accounts 1
The managed account industry, which began amid pension reform, has mushroomed in response to clients’ demands for a consistent process to manage their investments.

Chapter 2 The Revolution of Unified Managed Accounts 15
Unified managed accounts have evolved as investors sought greater coordination among their investments and more diversified portfolios.

Chapter 3 Mutual Fund Advisory Accounts 36
Financial advisors can leverage the potential of multiple mutual funds in a single client account by using a mutual fund advisory account.

Chapter 4 Alternative Investments 42
Alternative investments offer greater diversification and risk management than ever before, and many clients are asking that alternatives be included in their portfolios.

Chapter 5 Key Benefits of Managed Accounts and Recurring Revenues 61
Managed account solutions allow for a more efficient use of the advisor’s time, access to a more affluent clientele, a consistent revenue stream leveraged by the market’s growth, and a more valuable business entity; plus, clients prefer fees over commissions.

Chapter 6 How to Tell If Managed Account Solutions Are Right for Your Practice 75
Are managed account solutions right for you? Here’s how to evaluate your potential for success.

Chapter 7 Transforming Your Practice into a Wealth Management Business 94
Step-by-step instructions for explaining managed account solutions to clients and prospects, gathering information and developing an investment policy statement, and structuring an effective client meeting.

Chapter 8 Developing Your Managed Account Solutions Business 120
Referrals from current clients can bring prospects to your door, but you must know how to ask for them and have materials on hand to promote your practice.

Chapter 9 Positioning Yourself as a Solutions Provider 135
By cultivating mutually beneficial relationships with service providers, allied professionals, and the media, you can develop a steady stream of referrals to help grow your business.

Chapter 10 Attracting and Retaining Clients 151
Seminars remain an effective marketing tactic in the sale of managed accounts. Here are proven techniques for staging a successful meeting and building your reputation.

Chapter 11 Building on Your Success 161
Throughout the course of the client relationship, you will have multiple opportunities for capturing additional assets and building your managed account business.

Chapter 12 The Future of Managed Account Solutions 175
Industry leaders present their visions of what the future holds for managed account solutions and the advisors who provide them.

Epilogue: This Isn’t Your Father’s Advisory Practice 187

Appendix A: Sample Business Plan 190

Appendix B: Manager Evaluation Formulas and Ratios 197

Appendix C: Sample Investment Policy Statement 200

Appendix D: Seminar Checklist and Sample Invitations 209

Advisor’s Resource Guide 217

Index 223

About the author

Stephen D. Gresham is Executive Vice President and Director of Retail Markets for Phoenix Investment Partners, Ltd., the $42 billion asset-management division of The Phoenix Companies. Prior to joining Phoenix, he managed his own wealth-management consulting firm, The Gresham Company, LLC, which served a global clientele of more than fifty financial services companies. He is also author of the recently released Wiley title Advisor for Life, as well as The Managed Account Handbook and Attract and Retain the Affluent Investor. Gresham serves on the Board of Governors at the Money Management Institute and is a founding board member of the International Money Management Institute.

Arlen S. Oransky is Vice President of the Money Management Institute, the national organization representing the managed account solutions industry. He leads the organization’s membership acquisition and retention efforts. Oransky has over twenty-five years’ experience in the financial services industry working with leading advisors and has served as senior vice president for Weiss, Peck & Greer Investments and as vice president and product manager for TIAA-CREF.