Managed Accounts 101

The Managed Accounts industry currently hovers around $1.5 Trillion in Assets Under Management (AUM) and industry experts predict that number will grow to over $4 Trillion over the next 2.5 years.

In order for you to understand our business better here are some insights into our business and some links for you to learn more.

What is a Managed Account?

A managed account is an investment account owned by an individual investor but looked after by a hired professional money manager. In contrast to mutual funds (which are professionally managed on behalf of many mutual-fund holders), managed accounts are personalized investment portfolios tailored to the specific needs of the account holder.

Managed accounts give investors the freedom to choose what they want with the investments within the portfolio, and any decision made by the money manager is based on the individual investor's goals and objectives

Why are Managed Accounts growing at such a fast pace?:

Managed accounts have become a popular choice for people who wish to move away from low performing mutual funds in which many stocks are grouped together, so they can instead have the flexibility of a portfolio of individual securities. Managed accounts can provide superior optimization of investors' money.

Many baby boomers approaching their retirement years are moving their money into managed accounts to optimize the investments they have made for their future

How does someone open a Managed Account?

Currently, an investor needs a minimum of $100,000.00 to open an MA. Typically, an individual investor will work with a financial advisor to go over needs and goals; an investment manager can then use Vestmark technology to set up a strategy or model for what types of stocks will best suit the investor. The investment m`anager then buys and sells individual securities on the investor's behalf.