1. The FundQuest Unified Managed Account
U N I F I E D M A N A G E D A C C O U N T
A Simple and Powerful
Managed Account Solution
Offered by FundQuest,
a leading managed account
solutions provider
2. SMA Strategies,
Mutual Funds,
ETFs
Overlay Portfolio
Management
Dynamic
Investment
Selection
Sales &
Operational
Support
Quarterly
& On-Demand
Reports
Tax
Management
Ongoing
Due Diligence &
Rebalancing
Client-Specific
Customization
FundQuest UMA
Research
Technology
Administration
A Powerful Combination of Simplicity
and Sophistication
FundQuest’s Unified Managed Account (UMA) is a professionally managed portfolio
that offers multiple investment styles and multiple investment products within a single
coordinated account. FundQuest was one of the first firms to offer a comprehensive
UMA and now offers a third generation of UMA technology and services. Advisors
have recognized the UMA’s benefits and, according to the Money Management
Institute, the number of clients with UMAs has grown rapidly.
Investment professionals and their clients benefit from:
• The simplicity of a single managed account to coordinate a diverse set
of carefully researched mutual funds, ETFs, and separate account strategies
• The sophistication of a diversified portfolio, including multiple SMA
strategies, within a $250,000 Unified Managed Account (minimum
account size)
• Portfolios that balance return objectives and volatility considerations based on
an individual client’s risk tolerance and time horizon
• Increased diversification of investment strategies because typical SMA
(separately managed account) minimums do not apply inside FundQuest’s UMA
• Coordination of trading activity and rebalancing performed by FundQuest
• Customization via exclusions of specific securities
• Tax sensitive portfolios and tax harvesting opportunities
• Transition services to plan and implement the transfer of existing assets
• Reduced paperwork and maintenance versus multiple product-specific accounts
• Advanced UMA technology to support efficient account administration
Comprehensive Fully Supported Unified Managed Account
3. FEATURES BENEFITS
Multiple investment
products and styles
within a single account
Broadly diversified portfolio with carefully selected
mutual funds, separate account strategies, and ETFs
Account
customization
Advisor can personalize an investor’s portfolio by
restricting specific securities
Comprehensive
overlay portfolio
management
FundQuest coordinates account activities across
entire UMA portfolio to manage securities
transactions efficiently, avoid conflicting manager
recommendations and wash sales, and provide
parameter-driven rebalancing
Advisors gain time to focus on growth through
one-on-one client service and advice
Tax management
opportunities
Manage tax exposure through tax sensitive models
and execution of tax harvesting requests
Single account
administration
Reduced paperwork, reporting, and cross-product
coordination (versus traditional multiple account
structure)
Dynamic in-depth
investment selection
and monitoring
In-depth quantitative and qualitative research by
FundQuest’s investment management and research
team to identify best-of-breed investments
Rigorous analysis provides diversification across
asset classes and across a wide universe of domestic
and international style categories
Advanced proposal
technology
Fast on-demand investment proposal technology
with integrated profiling, research, and portfolio
diagnostics to generate client-specific UMA
recommendations
Advanced
quarterly and online
performance reporting
capabilities
Sophisticated but easy to understand quarterly
performance reports generated by FundQuest
On-demand 24/7 web access to client portfolio
information
Sales, transition, and
operational support
Experienced national team provides training,
proposal support, account maintenance, and
transition planning and implementation to move
assets to UMA
Advanced technology
and back-office
administration
Specialized UMA technology and well-defined
back-office procedures ensure quality account
operations
4. Proposal Automation, Diagnostic Tools, and Performance Reports
Overlay Portfolio Management Services and Technology
FundQuest’s overlay management services coordinate the UMA portfolio across the
underlying investment products.These services leverage FundQuest’s cutting edge UMA
technology, back-office quality processes, and investment management expertise to:
• Manage portfolio transactions efficiently and avoid buy/sell/hold manager
instruction conflicts
• Process tax harvesting requests
• Provide wash-sales oversight
• Implement client customization requests
• Rebalance portfolios to maintain the target asset allocation
Overlay Portfolio Management Processes
Coordination
of managers and
styles across:
ETFs,
mutual funds, &
separate account
strategies
Product and style
diversification
Integrated view
of performance
versus objectives
Coordinate
buy/sell/hold
instructions
Implement
client-specific
customization
Rebalance to
targeted
allocations
Process tax
harvesting
requests
Results
5. Strategic Asset Allocation
Tactical Category Allocation
Investment Selection
Ongoing Monitoring & Rebalancing
Quantitative
Analysis
Qualitative
Analysis
Qualitative Analysis
Understand who and what
contributed to past performance
by evaluating:
• Experience — investment
team qualifications and depth
• Fees — manager and
trading costs
• Buy/Sell Discipline —
buy and hold or active trading
• Philosophy — does the
manager’s process support it
• Compliance — reporting
and controls
Quantitative Analysis
Using both proprietary and external tools,
managers are evaluated against benchmarks
and peers on criteria including:
• Risk — traditional alpha and beta, &
standard deviation
• Performance — how managers perform
in up & down markets over time periods of
1, 3, 5, 10, 15 years, and since-inception
• Sector Weighting — neutral or biased
• Security Concentration — over or
under diversified
• Style Consistency — adherence to
investment philosophy and process
• Portfolio Attribution — what is driving
the returns
Dynamic Investment Selection and Recommendation Process
Strategic Asset Allocation
The foundation of FundQuest’s
investment process is asset
allocation – the amount of a
portfolio allocated between the
broad asset classes of stocks,
bonds and cash.
FundQuest’s diversified UMA
portfolios can help to mitigate
the ups and downs of market
performance, reduce risk,
and potentially enhance
portfolio returns.
Tactical Category Allocation
FundQuest further diversifies each UMA portfolio’s allocation by style and market
capitalization. Both stock and bond allocations may be diversified geographically via
international securities.
In-Depth Quantitative and Qualitative Analysis
Using both quantitative and qualitative analysis to identify appropriate securities in
each category or style, FundQuest follows a disciplined research process to select
best-of-breed money managers and mutual funds for FundQuest managed models.
