According to a paper from the Money Management Institute, investors are increasingly focusing on customization and control of their portfolios.

A new white paper from the MMI, “Customized Care: Managing Wealth through Managed Accounts,” says that separately managed accounts are being increasingly deployed by financial consultants to give investors control of their asset management.

Investors are becoming dissatisfied with “mass-marketed” investment approaches, says MMI. Customized separately managed accounts now are being employed to solve a
much broader range of essential, highly personal investment and financial problems.

The range of solutions includes:

– Enhanced portfolio diversification via reduction of an overly concentrated position in a particular asset
– Generating necessary income for retirement through restructuring of long-term portfolio assets
– Transferring highly appreciated assets to heirs with tax sensitivity customized realization of unrealized investment gains and losses to offset tax liability, particularly at year-end

Given expectations that the largest wealth transfer in history will occur over the next 20 years, says MMI, investor demand will grow for the most readily tailored, tax efficient means to manage large asset pools in line with specific, fundamental goals. “As the demand accelerates, separately managed accounts delivered by experienced consultants will accommodate an expanding investor universe, giving these investors more knowledge of and control over their assets than ever.”