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Well-Diversified Portfolios, Supported By A Clear And Compelling Investment Process

Build, deliver, and manage UMA portfolios with a unique diversification process that seeks to align investment decisions with client objectives, across various market scenarios. 

A Better Way To Prepare Clients For Moving Markets

The mark of a great advisor is one that helps clients navigate all market cycles with confidence.

 

But that’s easier said than done. Market movement is responsible for nearly 80% of portfolio return variance¹. As the market moves, clients’ portfolios are impacted—along with their emotions.

 

Advisors need a better way to diversify client portfolios—beyond the traditional blend of asset classes—to prepare clients to handle the uncertainties of moving markets. We help you do that with a unique approach to UMA portfolio design—MMS.

 

The process is simple, and the story is compelling.

 

¹ Source: Financial Analysts Journal, March/April 2010, Volume 66. “The Equal Importance of Asset Allocation and Active Management.” 2010 CFA Institute

Identify, Pair, And Monitor: A Simple Diversification Process

The MMS process revolves around three unique market diversification questions, a supplement to the risk assessment. These questions are designed to frame the diversification discussion, priming clients to understand the role of diversification in their portfolios.

Identify Client Expectations
Identify Client Expectations

The MMS process revolves around three unique market diversification questions, a supplement to the risk assessment. These questions are designed to frame the diversification discussion, priming clients to understand the role of diversification in their portfolios.

Question 1 – Global markets, though volatile, have historically been great engines for long-term wealth creation. Should a portion of your portfolio be exposed to the returns and volatility associated with these markets?

Question 2 – Would you expect a portion of your portfolio to be actively managed during periods of market volatility?

Question 3 – Should a portion of your portfolio be excluded from market movement during periods of market declines?

Pair and Blend Three Distinct Mandates
Pair and Blend Three Distinct Mandates

MMS allows you to blend three distinct mandates, or strategies, in one UMA portfolio.

Strategic – strategies designed to capture movement of the markets

Tactical – strategies that adjust for changing market conditions through active management

Diversifier – strategies designed to disengage from market movement and provide new sources of potential return and risk.

Monitor and Report to Validate the Story
Monitor and Report to Validate the Story

MMS isn’t just a story to help you sell UMA portfolios. It also works to validate your investment decisions and keep clients grounded through market volatility.

Reporting is segmented by mandate to show how each strategy supports overall portfolio performance. While historic performance isn’t indicative of future returns, helping client understand the role of diversification can build trust, reduce anxiety, and reinforce your philosophy.

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Not interested in building UMA models yourself?

Check out our turnkey suite of models, MMS Advised Portfolios. 

Ready to build and deliver well-diversified UMA portfolios with MMS?

Schedule a discussion with one of our product specialists. 

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