Managed Money

or Register to post new content in the forum

17 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Nov 26, 2008 11:46 am

I read on this forum that some people farm out their investments to "managed money". I have looked around but haven't found anyone with reliable returns that can't be beat using less expensive avenues..


Anyone willing to divulge who they are using that they think are doing a better job than the alternatives..?


Nov 26, 2008 11:59 am

It's hard to find something that doesn't exist. 

Nov 26, 2008 1:54 pm

Squash, the term "managed money" in reality means a lot of things.  The way most people refer to it on this board (and in general), it includes mutual funds and VA subaccounts (HANK, Bobby, etc.) in addition to separately managed accounts.  Because mutual funds are, in fact, managed money.

 
What I think you may be referring to is separately managed accounts, which is another ball of wax.  If this is the case, there is a place for SMA's, depending on the client.  Since with SMA's, the individual investor actually owns the individual underlying securities, there are possible tax advantages to having your money managed this way.  But I find most SMA's to be expensive and inflexible (they tend to be pure plays (ie. large cap value, large cap growth, etc.), rather than having more flexible objectives like many funds - this is why it appears that they underperform many funds).
 
But I think you need to be more clear on what you are looking for - SMA's, funds, "advisory" platforms, etc.
Nov 26, 2008 2:04 pm

That is kind of why I used the quotes.... What I am referring to is 3rd Managers, i.e. Curian...

Nov 26, 2008 2:07 pm

Got it.

 
What you have to realize (like funds), is that no 3rd party SMA manager is good at everything.  Some are good at small cap, some at mid-cap, some at international, some at bonds, etc.
Nobody uses just one manager.
I don't do a lot of SMA business, so I would have a hard time answering this.  Doesn't your BD have an approved list?
Nov 26, 2008 2:12 pm
B24:

Squash, the term "managed money" in reality means a lot of things.  The way most people refer to it on this board (and in general), it includes mutual funds and VA subaccounts (HANK, Bobby, etc.) in addition to separately managed accounts.  Because mutual funds are, in fact, managed money.

 
What I think you may be referring to is separately managed accounts, which is another ball of wax.  If this is the case, there is a place for SMA's, depending on the client.  Since with SMA's, the individual investor actually owns the individual underlying securities, there are possible tax advantages to having your money managed this way.  But I find most SMA's to be expensive and inflexible (they tend to be pure plays (ie. large cap value, large cap growth, etc.), rather than having more flexible objectives like many funds - this is why it appears that they underperform many funds).
 
But I think you need to be more clear on what you are looking for - SMA's, funds, "advisory" platforms, etc.



I beg your pardon. Even in VA's, I use UIT's. Why do so many of you girls like to tell lies about me?

Nov 26, 2008 2:14 pm

I was not telling lies about you.  I was pointing out to you that VA subaccounts that use funds are considered "managed money.

UIT's are also managed money, though not actively managed.
Nov 26, 2008 2:19 pm
B24:

I was not telling lies about you.  I was pointing out to you that VA subaccounts that use funds are considered "managed money.

UIT's are also managed money, though not actively managed.




Sounds like you have a very liberal definition of "managed."

Nov 26, 2008 2:24 pm

To me, paying an ongoing fee to someone else for asset selection would constitute "managed" money.  Whether that selection is done once every 18 months, or once a week, it is still management. 

Nov 26, 2008 2:25 pm

And who are you calling girls?

 
Nov 26, 2008 2:32 pm
B24:

And who are you calling girls?

 



Everyone that's mean to me.

Nov 26, 2008 2:36 pm
Hank Moody:
B24:

And who are you calling girls?

 



Everyone that's mean to me.

 
You're starting to reveal something about yourself.  And your past. 
Dec 1, 2008 9:05 pm

Anyone using a ETF money manager? Found a company W.E. Donoghue, seems to have decent returns

Dec 3, 2008 6:00 pm

Managed money? they have all managed to loose money, it's starting to sound like an oxyMORON to me. I can loose money for a lot less than they can.

Dec 3, 2008 6:28 pm
Squash1:

Anyone using a ETF money manager? Found a company W.E. Donoghue, seems to have decent returns

 
I've never used them, but Morningstar has a managed ETF program.
Dec 3, 2008 7:10 pm

Yeah, Morningstar has 2 portfolios, a "Hands On" and a "hands off" approach. Both of them have been hurt pretty bad. 

Also, there's Compass Asset Management (one of LPL's approved SMAs), they're on google somewhere.  They are an active etf management style (using all powershares btw) that has done wonderfully for the past 10 years.  Of course, this year hasn't been so rosy. 

Apr 4, 2009 5:16 pm

If you are looking for a cash solicitor or a third party money manager look at Genworth.  They have a fantastic platform with tons of options and very fair fees for both the client and advisor.  They do the entire allocation based on a clients profile.  No more messing around with multiple SMA's.  I had clients with them for all of 2008 who were down just 4%.

 
As for ETF managers, look at Avatar, Frontier, Breen etc. All available through Genworth.