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Advisory/Managed Account

What is an Advisor account?

An advisor account is a type of investment account where investment advisory services are included to help a client formulate and implement investment purchases and strategies. With the growth of robo advisory services, advisor accounts can include multiple levels of service and advice.

The fee structure of any advisor account is typically asset-based, with an annual fee paid by the client based on the percent of assets held in the account.

Understanding Advisor Accounts

Advisor accounts provide a range of different services for investors. Advisor accounts are for investors who seek a more comprehensive approach to investing. However, advisory account services can range broadly for investors. Accounts may support holistic portfolio management, personal financial planning, or targeted capital assets.

In general, assets managed in advisor accounts are subject to fiduciary standards, which means their investment recommendations are based on a comprehensive portfolio fit. These accounts will also usually incur an asset-based fee which includes the cost of operational transactions and portfolio management expenses.

What are some of the Benefits of an Advisor Account?

Working with your Advisor, you can create a personalized investment strategy to help you achieve a variety of goals, including asset growth, asset preservation and retirement income.

Consolidated, steady pricing. One total client fee, typically a percentage of assets under management, includes trading charges associated with buying and selling securities of the investments selected. The fee is deducted on a scheduled basis from the account value and investments selected.

Customized investment solutions – now and in the future. Together with your Advisor, you can make changes to your asset allocation in order to adjust for different life stages. For example, you may be accumulating assets for a specific goal or starting the distribution of assets in retirement. Some programs may offer a portfolio customization including socially responsible investing, tax loss harvesting and desired investment parameters.

What is an investment advisory relationship?

An investment advisory relationship is, generally, a long-term professional relationship that is built on trust, personalized investment management and ongoing oversight of your invested assets. An Advisor is required to adhere to a ‘fiduciary standard of care’ meaning that he or she has a legal duty to provide investment advice that is in your best interests.

Your investment advisory relationship provides you with ongoing advice and interaction with your Advisor. The ongoing management of assets provides opportunities for you and your Advisor to communicate and build lasting relationships – all to ensure that your goals and needs are being addressed. Annual reviews provide opportunities to measure progress toward individual goals and to share any changes in individual circumstances and expectations. Your Advisor will communicate with you on a regular basis continuing to build your relationship and meet your changing financial needs.

When you work with your Advisor, you’re still ultimately in charge of how your investments are allocated and managed, but typically the day-to-day management of your assets is handled by the Advisor, the Advisor’s firm or third-party investment firms. These activities may include rebalancing or changing the way your assets are allocated in response the market conditions.

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