Placemark Investments highlights "fast track" account-conversion solutions. Overlay manager Placemark Investments has launched a set of services to help independent advisors establish bespoke investment programs that integrate with major RIA service-agency platforms and transition client holdings in traditional vehicles to accounts featuring manager-supplied models.

Overlay management is the process of aligning trading activity, managing cash flow and enhancing the overall tax efficiency of multiple-sleeve investment portfolios.

Models-based accounts such as unified managed accounts -- single-account portfolios that typically combine separately managed accounts, mutual funds and ETFs -- are designed to provide reasonably broad asset allocation, streamlined reporting and tax efficiency in a fee-based environment. But the process of transitioning an existing non-model portfolio -- especially when concentrated holdings of a low-cost-basis stock come into play -- can have serious tax implications for the private investor.

Moving

Placemark's "Advisor Business Conversion" (ABC) program gives independent advisors -- especially wirehouse "breakaways" -- opportunities "to take control of the critical components and business functions they're equipped to perform in-house, while also getting access to products and solutions they traditionally accessed through their parent firm" such as account-transition processes, says Placemark's executive v.p. Randy Bullard.

And with more advisors expected to go independent as a result on on-going market turmoil and increased consolidation and dislocation among big-name firms, Bullard expects to see increased demand for overlay management among independents.

ABC support is provided by a team of Placemark specialists who analyze the advisor's book of business, develop an account-transition plan and manage the tax and risk impact of the conversion.

Ex-Credit Suisse private banker Steve Edwards recently co-founded Arcus Capital Partners, an Atlanta-based RIA. He says Placemark was able to help him and his partners -- also former big-firm advisors -- transfer a large book in managed accounts and mutual funds quickly and without having to surrender control or lose access to their preferred managers.

And Mike Capelle, a senior v.p. with United Capital Financial Advisers, a Newport Beach, Calif.-based RIA aggregator says that "Placemark's ability to develop custom solutions for our advisors, including client-specific transition portfolios, was a critical capability in recruiting and providing services to our high net worth advisors and their clients."

Addison, Texas, and Wellesley, Mass.-based Placemark provides active overlay management of fee-based, models-based programs. Its clients include Toronto-based BMO Nesbitt Burns, Minneapolis-based RBC Wealth Management (formerly RBC Dain Rauscher), Atlanta-based Homrich & Berg, and New York-based Oppenheimer Asset Management. -FWR

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