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Fortigent and Parametric Team Up to Provide Advisors Access to Unified Managed Accounts (UMAs)
June 09, 2008
Rockville, MD, June 9, 2008 —Fortigent, LLC, a high end provider of outsourced wealth management solutions for advisors and financial institutions targeting high net worth clients, announced plans to align with Seattle-based Parametric, an industry-leading provider of tax-managed investment products and portfolio overlay services . The relationship will offer independent RIAs and banks easy access to Fortigent's "Integrated Tax-Managed Account” (ITMA), a customizable, true open architecture Unified Managed Account (UMA) program designed specifically to meet the demanding needs of high net worth investors.
"There is growing demand in the RIA and bank channels for Parametric’s highly regarded tax management and portfolio overlay services,” says Steve Kauffman, Director, OverlayOne at Parametric. "Through this joint effort with Fortigent, we offer advisors and banks direct access to institutional quality managers, comprehensive pre-tax and after-tax reporting, and the flexibility for advisors to customize model portfolios to suit their target market." He notes that combining Parametric's tax overlay and UMA management expertise with Fortigent's investment research and performance capabilities creates a powerful engine that can differentiate an advisor's practice.
According to Andrew Putterman, President & CEO of Fortigent, "Many advisors want to control the investment process and build client-specific products. However, they underestimate the infrastructure and financial commitment required to serve as a UMA Sponsor. Leveraging Fortigent's unique strengths – institutional quality manager due diligence and access, differentiated core-satellite portfolio construction, and comprehensive performance reporting –ITMA allows advisors to create practice-specific solutions at a fraction of the cost and time required to get to market."
Advisors can retain control of manager due diligence and portfolio construction by employing their own unique model portfolios through Fortigent’s sponsored program, or they can access Fortigent’s proprietary model portfolios. "In other words," says Putterman, "wealth managers have full flexibility to deliver a comprehensive UMA program on either a proprietary or an outsourced basis, without changing their business model and without the cost or logistical requirements of sponsoring their own program."
The ITMA program will be available both to Fortigent clients and to other non-affiliated advisory firms and banks that want to access the program. The advisory firms can access Fortigent’s ITMA platform much as they would any third-party manager. "Individual firms will be able to customize their UMA portfolios to their own specifications, but they won't need to work through the logistics and operational issues of sponsoring their own program. We think it's a win for all parties," adds Kauffman.
The Value Add of the Fortigent "Integrated Tax-Managed Account" (ITMA). Fortigent’s ITMA is a customizable and tax-aware multi-manager program available to advisors targeting high net worth investors. The program will initially consist of proprietary multi-manager models using Fortigent's institutional quality managers and unique core-satellite portfolio construction approach. In a period of low expected market returns, advisors can add significant investment value to their clients by focusing on fees, taxes, and ease of implementation. Fortigent's ITMA program, powered by Parametric's tax management and portfolio overlay tools, offers true open architecture manager selection focusing on boutique and institution-only managers. In addition, the ITMA program offers portfolio and low basis stock transition analysis, the ability to screen for social or other client-specific objectives, and comprehensive, easy-to-read pre-tax and after-tax and risk-adjusted performance reporting for all UMA assets. The ITMA program can help advisors deliver a differentiated investment solution and enhance the overall client experience.
About Fortigent: Fortigent, LLC delivers a fully integrated and customizable business-to-business outsourced wealth management solution to banks, trust companies, and independent advisory firms. Services include an “open architecture” investment platform with particular expertise in alternative investments, a flexible unified managed account program, and consolidated wealth reporting. Fortigent’s web-based portal interface allows access to proposal and rebalancing tools, client portfolio reporting and accounting, as well as industry articles, research papers, and other practice management and business development resources.
About Parametric. Parametric Portfolio Associates is a Seattle-based investment firm specializing in overlay management and structured equity portfolios. Parametric’s portfolio offerings enable each investor to better control taxes, risk and investment objectives. Parametric is guided by the principle that investors should evaluate any investment performance in the context of risk and net of all taxes, fees and costs. The firm manages approximately $30 billion in assets for high net worth individuals, families, taxable and charitable institutions - $7 billion of which are OverlayOne assets. More information about OverlayOne or Parametric Portfolio Associates is available by calling Steve Kauffman, Director – OverlayOne at 206-694-5522 or by visiting www.parametricportfolio.com.
