FEATURED ISHARES ETFS
Models & SMAs
Models & SMAs
To reach a different BlackRock site directly, please update your user type.
In an SMA, the end investor has direct ownership of the assets, but an asset manager is responsible for making the actual trades and managing the portfolio. The asset manager typically charges a fee for their services, which is usually a percentage of the assets in the account.
SMAs | ETFs | Mutual Funds | |
---|---|---|---|
Diversified | |||
Cost effectiveness | |||
Seek to generate alpha | |||
Transparency of holdings | |||
Direct ownership of securities | |||
Customize based on client preferences | |||
Active tax-management |
If you are interested in pursuing an SMA for your client, reach out to your BlackRock representative or contact us by calling 877-472-7625.
As your SMA partner, we leverage our people and technology to help advisors solve their clients’ most complex investment challenges.
Local partnerships
Access to personal portfolio managers (PMs)*, investment strategists and client service specialists.
Personalization beyond the ordinary
Enhanced customization capabilities seeking to deliver personalized solutions.
Proprietary technology
Institutional level risk management platform to help build resilient portfolios.
SMAs create benefits for both end investor and advisors by offering institutional investment management in an account of directly held securities. As a result, advisors of high net worth clients are increasingly adding SMA allocations in portfolios.
Benefits for the End Investor:
Benefits for the Advisor:
SMAs fees are billed monthly or quarterly as a percentage of the portfolio’s NAV. This billing process makes SMA fees more transparent than fund fees which are typically deducted directly from fund NAV throughout the year. SMAs like ETFs are generally lower cost than mutual funds, which may appeal to high net worth investors who qualify for their minimums.
SMAs are available through SMA or Unified Managed Account (UMA) platforms from broker dealers, custodians, and TAMPs across the wealth management industry. While each platform is unique, every SMA falls into one of two categories:
Dual Contract: the SMA manager signs a direct contract with both advisor and client. This structure enables high levels of account customization and pricing flexibility, but may be more operationally cumbersome.
Single Contract: the SMA manager signs a contract with the advisor, but not the client. While simpler to onboard, single contract SMAs offer less customization and pricing flexibility. SMAs on UMA platforms are single contract.
BlackRock has SMA placement on all major industry platforms. For platform specific availability, please reach out to your BlackRock representative.