Model Portfolio & SMA Strategists Showcase - Flipbook - Page 3
SMAs & MODEL PORTFOLIOS
DIRECT INDEXING & TAX-MANAGED SMAs ...................... 31
The basic mechanism ............................................................... 31
How big this has actually gotten ............................................... 32
Turnover, name count, and where tax drag actually lives ..............32
Personalization beyond taxes ................................................... 32
Gifting appreciated securities in kind ......................................... 33
What cost-basis step-up means for a
lifetime of careful harvesting ...................................................... 33
Long/short tax-loss harvesting.................................................. 34
Fixed-income tax-loss harvesting .............................................. 34
Tax optimization at the household level ..................................... 35
Where the sleeves-versus-commingled debate stands ................35
Account minimums and accessibility ........................................ 35
Step 1: Decide how hands-on you want to be, honestly .......... 44
Step 2: Segment clients by actual need,
not by asset level alone ........................................................... 44
Step 3: Run the due-diligence checklist for real,
on every serious candidate ...................................................... 45
Step 4: Stack the fees and do the arithmetic before committing .. 45
Step 5: Confirm platform compatibility before assuming it ........ 45
Step 6: Build the client conversation before,
not after, implementation ......................................................... 45
Rolling this out across an existing book of business ...................... 45
MIGRATING THE PRACTICE ITSELF ................................... 46
Building in a review cadence..................................................... 46
The framework, compressed .................................................... 46
The revenue model conversion ................................................. 47
Compliance and re-papering at scale ....................................... 47
Staffing and workflow redeployment ......................................... 47
The identity shift, practice-wide ................................................ 48
A phased roadmap ................................................................... 48
A practice-migration checklist ................................................... 48
PORTFOLIO TRANSITIONS .................................................. 36
Why this is its own discipline, not just an implementation detail ...36
Where the concentrated position came from ............................ 36
Two transition frameworks ........................................................ 36
Choosing between them........................................................... 37
Market conditions change the math .......................................... 37
When active strategies complicate the picture further ............... 37
The advisor’s role in this decision .............................................. 37
Tax-smart decumulation ........................................................... 38
CASE STUDIES IN PRACTICE .............................................. 49
Why this belongs in this guide at all .......................................... 49
Case Study 1: The concentrated executive ............................... 49
Case Study 2: The multigenerational family ............................... 50
Case Study 3: The accumulating professional........................... 51
Case Study 4: The retiring business owner ............................... 51
RETIREMENT PLANS & MANAGED ACCOUNTS ............... 39
Why managed accounts are gaining ground
inside retirement plans .............................................................. 39
Adoption has become mainstream, not niche ........................... 40
Do managed accounts improve outcomes?.............................. 40
Why plan sponsors are motivated to adopt these programs ..... 40
What advisors serving plan sponsors need to evaluate ............. 41
Where this is headed ................................................................ 41
GLOSSARY ............................................................................. 52
FIRM & STRATEGY PROFILES
Alpha Vee Solutions...................................................................56
Clark Capital Management Group..............................................57
Grantham, Mayo, Van Otterloo & Co..........................................58
Invesco......................................................................................59
Logan Capital Management, Inc................................................61
Russell Investments...................................................................62
Schafer Cullen Capital Management..........................................63
Synergy Asset Management, LLC..............................................64
WealthTrust Asset Management LLC.........................................65
CLIENT COMMUNICATION & THE ADVISOR’S
NEW ROLE ............................................................................. 42
Putting a number on the value .................................................. 42
The repositioning problem ........................................................ 42
What to actually say ................................................................. 43
Handling the “Why aren’t you managing my money yourself?”
objection directly ...................................................................... 43
Communicating through market stress specifically .................... 43
The coaching role, made explicit............................................... 43
APPENDIX A: DUE-DILIGENCE RFP QUESTIONNAIRE ..... 66
APPENDIX B: CLIENT & PROSPECT
CONVERSATION SCRIPTS ................................................... 67
BUILDING YOUR MODEL PORTFOLIO STACK................... 44
The six-step framework ............................................................ 45
CONTRIBUTORS ................................................................... 69
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