- When financial advisors choose to use an SMA, the top considerations are fairly consistent: the ability to tax loss harvest, customize investments, and manage clients’ concentrated positions. It’s also important to understand why advisors work with a specific asset manager for an SMA strategy.
- The top-rated rationale for working with an SMA manager is that the firm has a comparable strategy in a mutual fund and/or ETF that the advisor currently uses or knows. Advisors value strategies that are available in multiple vehicle wrappers so that they can implement the vehicle across all of their client accounts, regardless of the client account size.
- Other top rated factors when choosing an SMA manager include being one of the advisor’s top five fund families they currently work with. In addition, it is beneficial for a manager to offer a wide range of both equity and fixed-income SMA strategies.
