5 SEI Managed Account Solutions
Tax efficiency and customization
Less More
Professional money
management
Yes Yes Yes
Structure, ownership, and
transparency
Pooled ownership
Each investor adds money to the pool to buy shares of an
investment.
Direct ownership
Investor directly owns
securities in the portfolio.
Customization ability Limited
All investors own shares of the same fund/ETF composition.
High
Ability to customize to
investor preferences, such
as asset class, style, or social
preferences.
Tax optimization potential Limited
Tax-loss harvesting is not
possible and capital gains are
passed to fund shareholders.
Limited
Some ETFs offer tax-efficient
vehicles, but tax-loss
harvesting at the individual
security level is not available.
High
Direct ownership enables
opportunities for tax
transition, tax-loss
harvesting at the position
level, and proactive oversight
of tax implications.
Separately managed accounts provide a highly customized investment portfolio, which typically
requires a higher minimum investment and may incur higher fees. Since separate accounts offer
customization, investors should understand their risk tolerance when selecting an investment
strategy. Investors should also understand that diversification in an SMA is across individual
securities as opposed to a mutual fund or exchange-traded fund (ETF), which could hold hundreds
or thousands of different stocks.
Unified Managed Account (UMA)
Mutual fund
Exchange-
traded fund
(ETF)
Separately
Managed
Account (SMA)
