As a consultant and trusted adviser, you work hard to generate positive returns for your asset owner clients. Exposure to uncorrelated returns through large asset mandates may be an important part of your strategy, but along with these come important systems and governance to meet committee and board requirements. These groups may also demand you increase investment transparency and reduce fees. Additionally, you may be seeking a structure to help your organization manage multiple smaller clients with less cost and strain on your internal operational resources.
So how do you deploy your complex investment strategies and meet all these obligations in a cost-effective, operationally efficient way? Ultimus’ Dedicated Managed Account (DMA) is a beneficial solution. This structure provides the exact controls, services, and reporting required to manage investments in a cost-efficient and scalable way.
A Flexible Structure to Help You Reduce Costs & Meet Investor Demands
A DMA helps you meet your objectives to reduce costs, improve overall returns, and meet investor demands for liquidity, control, transparency, and oversight. Importantly, a DMA also provides you the flexibility to negotiate strategy customization, investment guidelines, and management and performance fees with each underlying fund manager. Additionally, a DMA improves internal efficiencies and reduces costs associated with the operational requirements of managing direct investments.
Through a DMA, the asset owner is the sole investor, with full ownership and control over the account. As the OCIO, you select preferred trading advisers, custodians, Prime Brokers (PBs) / Futures Commission Merchants (FCMs), and other service providers, and delegate daily management of the account to an appointed manager. You or your institutional client and each underlying fund are linked together only through an Investment Management Agreement. This structure provides the exact controls, services, and granular reporting needed to make more informed investment decisions.