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Consulting Group Select Unified Managed Account (UMA)

The ever-increasing complexity of investment management can make coordinating decisions a full-time job. Often it seems that there are too many accounts to oversee, too many investment strategies to consider, too many reports to review and too many tax statements to organize.

Now there's a better way. The Consulting Group Select UMA program combines personalized investment planning, in-depth research, professional asset-management services, a variety of investment products and a diversified portfolio — all within a single account at Morgan Stanley Smith Barney.

Through Select UMA, you receive:

  • one account for all of your holdings — separately managed accounts, mutual funds, exchange-traded funds and even alternative investments
  • one contract
  • one asset allocation plan
  • one monthly statement
  • one comprehensive performance report
  • one consolidated year-end tax summary

One Account, One Relationship

A unified managed account (UMA) is designed to integrate a variety of investment products and services within a single account structure, providing you with a comprehensive, unified approach to asset allocation, product selection, account administration and performance reporting. An overlay manager coordinates all activity in the account, including portfolio construction and implementation, account rebalancing and optional tax-management services.

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Investment Process

  • Step 1: Set Financial Objectives
  • Step 2: Define Investment Strategy
  • Step 3: Select Investments
  • Step 4: Ongoing Review Process

Learn more about Select UMA's investing products.

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Asset Allocation

Appropriate asset allocation — the process of distributing funds across different investment instruments and asset classes — can create optimized portfolios that produce the highest expected returns for a given level of expected risk. Portfolio diversification seeks to accomplish this by reducing the exposure to losses caused by a decline in value of one or more of the portfolio's components.

The Select UMA program offers you the choice of either strategic or tactical asset allocation advice through two series of models developed by investment committee, an experienced team of qualified investment professionals from across the firm. One series of models offers traditional-only asset classes, while the second includes an allocation to alternative investments (in mutual fund format). Each series contains eight strategic and eight tactical models utilizing up to 13 asset classes for a range of risk and return preferences.

  • Strategic Asset Allocation. Strategic asset allocation advice uses portfolio optimization as its framework and incorporates estimates of long-term risk, return and correlation for each potential asset class. This process results in a series of efficient portfolios or models for varying levels of risk and takes a long-term approach that attempts to alleviate the influence of short-term market cycles
  • Tactical Asset Allocation. Tactical (or active) asset allocation advice is primarily driven by market conditions. Tactical models are based on the strategic models, but represent a shorter-term time horizon that reflects the investment committee's outlook on which asset classes are more likely to outperform or underperform in the upcoming 12 months
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Investment Products

There are more than 160 investment products available in the Consulting Group Select UMA program, including separately managed accounts, mutual funds, exchange-traded funds and alternative investments in mutual fund format. Up to 20 investment options may be available for each asset class in a Select UMA model, and all investment products are researched, evaluated and monitored by our Investment Advisor Research team.

Please speak to your Financial Advisor advisor for a list of available investment products.

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SEC Form ADV Disclosure Documents and Privacy Notices

Using the link below, you may view and print the SEC Form ADV Part II or similar disclosure document (the "Disclosure Document") and privacy notice (the "Privacy Notice") for Morgan Stanley Smith Barney — which is both the Sponsor and Overlay Manager for the Select UMA Program — as well as for each Select UMA Sub-Manager. Please review the Disclosure Documents and Privacy Notices carefully, as they provide important information about Morgan Stanley Smith Barney and each Sub-Manager.

View and print SEC Form ADV Disclosure Documents and Privacy Notices.

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Portfolio Rebalancing

Market forces may cause asset allocations to shift over time, increasing portfolio volatility or leaving investors exposed to more risk than they were originally prepared to accept.

Select UMA's automated portfolio rebalancing feature corrects for shifts in the asset allocation as a result of market forces.

  • For strategic asset allocation models, asset classes are rebalanced if they deviate from the target allocation by a predetermined percentage amount
  • For tactical asset allocation models, asset allocation changes implemented by the investment committee rebalance the account to the new asset allocation model
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Customized Tax Management

Customized tax management is an optional service that utilizes tax-loss harvesting, tax mandates and other techniques to manage tax liabilities at the portfolio level. Tax management may benefit investors with any of the following attributes:

  • high income tax rates
  • high portfolio turnover
  • Alternative Minimum Tax (AMT)
  • large legacy asset transfers
  • portfolios with deep embedded gains

Customized tax management services are available through the program's overlay manager for no additional fee in Select UMA accounts over $500,000. Tax-managed accounts may only utilize strategic asset allocation advice in Select UMA models 2-8.

Please note: Tax Management Services may adversely impact account performance and do not constitute tax advice or a complete tax sensitive management program. There is no guarantee that Tax Management Services will produce the desired tax results.

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Performance Reporting and Portfolio Review

The investment process does not end with the selection of appropriate investments or services. All investors need to assess the performance of their investments periodically to ensure that their goals are being met.

Select UMA provides performance monitoring on two levels: that of the individual investment products and that of the portfolio as a whole. A regular review of performance reports with your Financial Advisor advisor provides an excellent opportunity to ask questions and review your overall financial situation. As your personal or financial situation changes, it will be important to determine whether short-term or long-term changes may be needed in the choice of investments or asset allocation models.

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For more information, please contact your Financial Advisor.

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