[quote=bluewire]

Hi guys,

First post. I've lurked in the corners observing but decided to register because I have an issue that is worth asking about. I'd like you thoughts on how to pitch a UMA. I can't see the value to be honest but my firm and associates are selling them left and right.

Out lowest UMA has an entry asset level of $75K and an annual fee of 1.65%. Most of my clients have a portfolio built around A Shares that they've held for several years with average cost of 1.10%. In some cases,  the client simply owns an income fund - in other cases they own up to 8 funds (all in the same family) but we're following an AA strategy.

How would you pitch them the virtues of moving out of their A Share allocation into a higher costing UMA. I welcome all opinions (pro and con UMA)

I agree with what you’re saying. I’ve asked my colleagues the same question but the responses haven’t been all that convincing. I was trying to open my inquiry to a broader selection of Advisors which is why I posted the question here.

Why would you care about how to pitch them if you dont see the value in them?

I agree with what you’re saying. I’ve asked my colleagues the same question but the responses haven’t been all that convincing. I was trying to open my inquiry to a broader selection of Advisors which is why I posted the question here.

You can make a strong case why a client should consider a UMA or stay with the fund they originally purchased.  From a pure cost standpoint, once a client pays the upfront costs it will be cheapest to stay put.  But take a look at the fund.  Are the same portfolio managers still with the fund?  Sometimes those guys take off for a bigger check.  Are you able to get proper asset allocation from one fund family using good funds?  Do you consistently rebalance for a client?  Would you trust yourself to do the research on each fund for the next 10 years and exchange when it needs to be done or would an advisory team do a better job of this?  If a client has been in a fund for 3-5 plus years, I think its ok to take a look at the next level.  It will be more expensive but maybe better service and return for the client.  Plus, if you don’t offer it to your clients someone else may and they could ACAT before you have a chance to show them something else.  The industry seems to be moving in this direction and its a pretty easy sell to your clients if you present it right.  Most don’t think about the next 10 years of fees but how the statement will look in the next 6 months.  They may balk at a 3% charge and have not problem with 1.5 per, go figure.  Last, there is nothing wrong wth getting paid, do you want to establish a solid base salary in residual business or start at 0 every month.  Your clients will enjoy that you stick around for the next 20 years instead of burning out after 4 years because you are constantly selling. 

Good points LA. A few I’ve heard before, other points are new or at least presented in a way that makes sense. Thanks for the reply that directly answers my question.

What is a UMA? 

No, it was not difficult since I sell a lot of this.  Easy for Iceco1d to call me an idiot but give no repsponse to your question.  I'm pretty sure I have done more business than Iceco1d has.  I am on this forum to learn and give feedback when I have some.  Iceco1d is a 22 year old punk that has not done anything.  He is still stuck in his college years coming up with a lame comment for every post but has not real business experience to contribute.  His only posts come on the Wind post when the banter had nothing to do with being an FA.

[quote=LA Broker]

No, it was not difficult since I sell a lot of this.  Easy for Iceco1d to call me an idiot but give no repsponse to your question.  I’m pretty sure I have done more business than Iceco1d has.  I am on this forum to learn and give feedback when I have some.  Iceco1d is a 22 year old punk that has not done anything.  He is still stuck in his college years coming up with a lame comment for every post but has not real business experience to contribute.  His only posts come on the Wind post when the banter had nothing to do with being an FA.

[quote=bluewire] Good points LA. A few I’ve heard before, other points are new or at least presented in a way that makes sense. Thanks for the reply that directly answers my question.

No, it was not difficult since I sell a lot of this. Easy for Iceco1d to call me an idiot but give no repsponse to your question. I’m pretty sure I have done more business than Iceco1d has. I am on this forum to learn and give feedback when I have some. Iceco1d is a 22 year old punk that has not done anything. He is still stuck in his college years coming up with a lame comment for every post but has not real business experience to contribute. His only posts come on the Wind post when the banter had nothing to do with being an FA.

[quote=Moraen] [quote=LA Broker]

No, it was not difficult since I sell a lot of this.  Easy for Iceco1d to call me an idiot but give no repsponse to your question.  I'm pretty sure I have done more business than Iceco1d has.  I am on this forum to learn and give feedback when I have some.  Iceco1d is a 22 year old punk that has not done anything.  He is still stuck in his college years coming up with a lame comment for every post but has not real business experience to contribute.  His only posts come on the Wind post when the banter had nothing to do with being an FA.

I must have really gotten to you because I noticed you mention me in just about every post now.  Is this the "little man" syndrome coming on or your Edward Jones inferiority complex.  Nothing wrong with Jones, plenty of good brokers, but everyone knows they have the lowest hiring standards in the business which explains your hiring.  Since you just joined this forum I will assume you are a new new who came from the mortgage business.  Don’t worry, if you really work hard, knock on a bunch of doors you may earn that sh#tty office in a strip mall next to the liquor store with your GED BOA with missing teeth.  Of course you will have lost all dignity along the way having old ladies slam doors in your face telling you what a bum you really are.  Oh, and once you get burned out, Jones will fire your as# and put another guy in your place.  You can try to say anything you want and I could care less.  While your probably stuck in some worthless small town I’m living a pretty good life by the beach.  I know that pisses you off and you will come up with some lame Pole Smoker comment, but deep down you know I win.    <?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />

[quote=LA Broker] [quote=Moraen] [quote=LA Broker]

No, it was not difficult since I sell a lot of this. Easy for Iceco1d to call me an idiot but give no repsponse to your question. I’m pretty sure I have done more business than Iceco1d has. I am on this forum to learn and give feedback when I have some. Iceco1d is a 22 year old punk that has not done anything. He is still stuck in his college years coming up with a lame comment for every post but has not real business experience to contribute. His only posts come on the Wind post when the banter had nothing to do with being an FA.