Brinker Capital, a leading investment management firm, today announced an innovative enhancement to its successful Unified Managed Account product with the inclusion of a Tax Transition strategy. The Brinker Capital UMA+Tax Transition (UMA+TT) offers financial advisors the ability to help transition a client’s assets to a diversified portfolio over time, while negotiating potential negative tax consequences.
The UMA+TT combines tax management with asset allocation that can incorporate managed accounts, mutual funds and ETFs into one fully-diversified portfolio. Through a review of clients’ portfolios, Brinker’s UMA+TT is able to retain in-kind legacy holdings and harvest losses, while building a portfolio around the client’s existing low basis or concentrated positions, all over a client-directed time horizon. Investment advisors are now able to attract prospective clients by offering the ease and efficiency of the traditional UMA with sophisticated tax management solutions in the transition of assets.
“Tax consequences in no way should prevent investors from achieving the benefits of a diversified portfolio,” said Noreen Beaman, Brinker’s EVP of Strategic Planning at Brinker Capital and architect of the firm’s UMA+TT. “With the Tax Transition enhancement, our UMA offers a thoughtful, cost-effective means for advisors to create and implement a unique tax-sensitive UMA strategy for their clients. By offering prospective clients an easier, less burdensome transition when making portfolio changes, we are helping advisors grow their practices and build relationships that tax burdens may have prevented.”
Brinker’s UMA, launched in early 2006, allows advisors to offer their clients asset allocation in a fully-diversified portfolio designed around the client’s goals, risk tolerance and asset level. The simplified account structure incorporates managed accounts, mutual funds, exchange traded funds (ETFs) and alternative investments on a single administrative platform. Clients also benefit from consolidated reporting, receiving all account information in a single quarterly statement and one year-end 1099.
Ms. Beaman noted that as of February 2008 its UMA product has reached $475 million in assets under management, with the average account size over $800,000. By comparison, the average industry account size is $400,000-$500,000.
Brinker’s UMA is currently available through the firm’s national network of independent registered investment advisors and advisors associated with insurance companies.
About Brinker Capital
Brinker Capital, Inc. is a leading independent investment management firm which provides managed account investment programs to individual and institutional investors through financial advisors. Brinker was founded in 1987 by Charles Widger and is located in suburban Philadelphia. Assets under management were over $9.7 billion as of December 31, 2007