How an SMA may offer a more personalized investment journey for your clients
How an SMA may offer a more personalized investment journey for your clients
by Morgan du Plessix
Wealth advisers face a lot of competition to meet their clients’ rising expectations for more holistic investment planning. Separately managed accounts (SMAs) offer substantial potential for personalization. In this episode of “The Ethic Playbook,” relationship manager Morgan du Plessix breaks down the value proposition of opting for an SMA strategy over purchasing an ETF.
While ETFs are also a solution that can help investors reach sustainability goals, SMAs offer the following advantages:
- Increased transparency. Unlike other managed assets, such as ETFs and index funds, SMAs let investors exclude specific securities, which can help them build portfolios that are more aligned with their values.
- More efficient tax management capabilities. By allowing investors to directly own individual stocks, their advisers can efficiently incorporate tax management into trading decisions.
- Double down on impact through proxy voting. Investors can impact corporate behavior through proxy voting or shareholder resolutions when they invest in SMAs, as the solution lets them directly own the underlying securities.
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Contact your relationship manager to learn more about how Ethic can help you and your clients build a direct indexing portfolio.
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