A customized investment approach to reach specific financial objectives
	Investments are managed for tax efficiency (i.e. the portfolio manager will structure the portfolio and time the transactions to mitigate the tax impact while maximizing performance in line with the investor's goals.)
	Investor's ability to make specific portfolio requests, such as tax-related trading, avoidance of specific stocks, etc.
	An asset-based, rather than a commission-based, fee structure. One fee includes investment counseling, portfolio management, brokerage fees, and ongoing account administration.

The technology boom of the 1990's helped investors in many respects. Unfortunately, the information age  also produced a number of less favorable consequences. There are too many choices and too many people offering advice. Another common frustration is that personalized service is increasingly hard to find.

In an effort to eliminate these frustrations, managed accounts are individually tailored to meet the specific needs and objectives of investors. First, in order to establish a managed account program, investors complete a comprehensive questionnaire that is carefully designed to assess their own unique situtation. Money managers are then selected based on this specific criteria. Once the money managers have been selected, portfolios are then managed on an individual basis. In other words, one investor's funds are not co-mingled, or pooled, with those of other investors.

When coupled with the advantage of not having to pay separate commissions for security transactions, a managed account becomes quite cost-effective.

When compared to other alternatives, managed accounts offer significant value to investors. Much of this value lies in the knowledge and experience of the investment advisors, or consultants, who work closely with investors to ensure that their long term goals are achieved. In addition, managed account investment programs include a number of services that would otherwise be cost-prohibitive. Some of the services that might be provided include a written investment policy statement, professional portfolio management and performance measurement reports.

Another significant advantage of managed accounts is that there are no hidden charges. Fees are clearly disclosed and are typically charged on a quarterly basis. Fees may also be tax deductible.

What Should You Look For in a Financial Consultant and a Managed Account?

There are several important questions to ask when selecting a financial consultant for your managed account:

Q: What kinds of consulting experience and professional certifications are important?
A: Look for, ideally, extended tenure at the particular firm, facility in explaining the appropriateness of various asset classes, and willingness to discuss general characteristics of a comprehensive range of clients served. Look also for appropriate professional certifications, such as CFA, CFP, CIMC and CIMA.

Q: How will the consultant help determine my specific situation, needs, and goals?
A: The consultant will pose a series of questions designed to elicit detailed information about your circumstances and your objectives for an investment program. Following that discussion, the consultant will produce an in-depth, customized profile laying out your specific financial goals and an initial investment approach to meet those goals.

Q: How will I learn about all the various fees involved?
A: The consultant will clearly identify and explain advisory fees as well as underlying fees for all investment management services.

Q: How will my assets be allocated and how will the mix be adjusted going forward?
A: Your initial asset allocation will be based on the strategy developed for you when you begin working with your consultant. The consultant will also describe a process for "dynamic," ongoing reallocation of assets as your changing personal needs and market conditions dictate.

Q: What kinds of investment styles and asset classes can I anticipate being able to utilize in my portfolio?
A: You can expect to invest in a comprehensive range of asset classes, including international and "nontraditional" asset classes as well as traditional equity and fixed income categories, across a full spectrum of investment styles.

Q: How will the performance of my account be measured?
A: Your managed account performance will be measured by a customized "yardstick" that you develop with your consultant in line with specific objectives you are trying to achieve. With this customized measurement method, you and your consultant can be sure your portfolio is structured to reach long-term goals.

Q: How will the performance of managers be monitored?
A: The consultant will describe a process of personal meetings with managers, close monitoring for adherence to designated styles, and a system for replacing managers if performance targets are not met.

Q: How will the consultant keep in touch with me going forward?
A: You will be able to contact your consultant at any time to discuss your account. You can expect quarterly reports with details of account activity, detailed performance reporting and relevant comparisons, information on ongoing tax liability, and an outlook for investment markets going forward. The consultant also will offer you at least two annual meetings to discuss your account in-depth.

Q: Can I speak with some of the consultant's other clients?
A: Your consultant will be happy to provide you with references.

Are You a Potential Managed Account Client?

Managed accounts are an appropriate investment vehicle for specific types of investors. For example, an investor who has more than $250,000 in investable assets or a specific, long-term financial objective may be a potential managed account client. An investor can consider the following questions in determining if a managed account is an appropriate investment vehicle for him/her:

	Do you have more than $250,000 in investable assets (including IRA)? Managed accounts represent an individualized investing approach that is particularly appropriate for portfolios of more than $250,000
	Did you incur a large (i.e., more than $10,000) tax bill from your investments in the last tax year? Managed accounts can be managed for tax efficiency. Additionally, taxes are incurred only on your investment gains.
	Do you know the total fees and commissions you now pay as a percentage of your assets? Managed account fees are asset-based, rather than commission-based, giving your portfolio manager special incentive to grow your assets. Additionally, as a percentage of your total assets, at any time you can calculate what your fees will be.
	Are you receiving personalized counsel that helps match your investments to your goals and risk tolerance? Managed accounts provide a customized investment strategy, developed by your consultant, based on your specific long-term investment needs.
	Do you expect to be the recipient soon of a significant wealth transfer or pension rollover? Managed accounts provide personalized portfolio allocation of significant asset pools, taking into consideration tax consequences, immediate and long-term financial needs, etc.
	Do you have an important long-term financial goal for which you need a specific investment strategy? A financial consultant can work with you to plan a disciplined strategy to help you reach a long-term goal.
	Are you interested in exploring investment approaches beyond mutual funds? Managed accounts enable investors to invest in a range of discrete investment vehicles beyond mutual funds, while maintaining a diversified portfolio.