Advisor Flipbooks

7 SEI Managed Account Solutions Unified Managed Accounts: Gain additional tax advantages. Unified Managed Accounts (UMAs) provide the ability to gather investments (SMAs, mutual funds, ETFs, and other investments) within a single account. At SEI, UMAs are managed by an overlay portfolio manager, who monitors the entire portfolio and makes adjustments as needed to ensure the client parameters, such as target allocation and investment strategy, are being met. This includes periodic rebalancing with a priority on tax coordination. With a birds-eye view of the portfolio across all securities and managers, the overlay portfolio manager employs a variety of methods with the goal of optimizing the portfolio for tax efficiency and flexibility, including: TA X-LOSS HARVESTING: TURNING LOSSES INTO A SSET S A capital loss is an asset because you can use it to offset a capital gain. Active tax-loss harvesting means continuously sweeping the portfolio for a security trading below its cost basis, selling the security, and buying a replacement security with similar characteristics to keep you invested. Transitioning existing securities Comparing risk between an existing and a diversified portfolio to help manage gains/losses during a transition Harvesting tax-loss opportunities Engaging in daily tax management and automated tax-loss harvesting Coordinating trading and seeking to avoid wash sales Investing cash into other securities to keep the portfolio as close to the target allocation as possible, while addressing wash sale restrictions Deferring short-term gains Employing logic to analyze the size and risk of a position, size of a gain, and how long until a position changes from short-term to long-term Taking advantage of active manager stock decisions Using rails and bounds around each individual position to automatically sell or buy to the proper bound Reducing risk and cost Diversifying across managers to potentially lower risk profile and volatility, and seek out lower costs

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