Managed money vs. mutual fund

or Register to post new content in the forum



  • 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.
Apr 7, 2006 12:15 pm

Hi everyone,

What are some weaknesses of managed money (seperate managed accounts)?


Apr 7, 2006 12:51 pm

High investment minimums vs. Mutual Funds.

Apr 7, 2006 3:15 pm

depends on the SMA

you mainly want to look at it soley from a cost standpoint.  considering # of transactions, and the types of investments they are wanting to buy.  very broad question.

Apr 10, 2006 12:23 am

A few weaknesses of managed money:

    1. High investment minimums

    2. Very difficult to get proper diversification with less that 1 million.

    3. Large 10-99 at end of year

    4. Client sees individual stock holdings on statements which leads to "why do I own a dog like PFE?"

    5. MM is meant for high net worth individuals that want control of their holdings (old stock they are married to).  Unfortunately, less that 8% of clients actually use this.

    6. high expense for first 500k to 1 million

    7. Managers usually have a much shorter track record that many mutual fund managers.

    I use both Managed accounts and mutual funds, but I've found that best of breed C-share funds are less expensive for the client and raise less questions about performance and fees that separately managed accounts.

Apr 10, 2006 1:46 pm

Why would someone with over $1m pay fees in a mutual fund and then pay you another fee to manage it?  For that type of money they customer will pay less expenses and have more control with SMAs.

Apr 10, 2006 2:30 pm

I agree with Uncertainteeeeeeee

Did I spell that right?