What is a BlueGive Separately Managed Account (SMA)?
A Separately Managed Account (SMA) DAF is a discretionary management agreement whereby a client delegates the day-to-day investment management decisions and implementation of their DAF investment strategy to their Ronald Blue Trust advisor to manage outside of the BlueGive platform.
Clients can choose to leave cash managed by BlueGive for ease of granting purposes that sits in an RBT cash pool (ticker SGOV) as noted by the Cash & Cash Equivalents section in the screenshot above.
How do SMAs differ from commingled models available on BlueGive?
Unless a specific SMA account is opened with GiveClear™, DAF assets on BlueGive are placed into one of several commingled models managed by TIFIN Give as the RIA.
Ronald Blue Trust advisors can earn a sub-advisory fee by selecting suitable commingled models for their clients that include the Strategic Stock and Strategic Bond portfolios, along with a series of allocation mixes between the two strategies to account for differing levels of risk that a client wants to incur with their DAF assets.
Why should I choose an SMA for my client?
A Ronald Blue Trust advisor may choose to use strategies and/or holdings that are separate from the core commingled models offered on the BlueGive platform and this decision often depends on the size of the DAF and the sophistication of the end client or investor.
Sizeable DAFs often correlate to wanting more control over the investment decisions, so an SMA becomes the preferred option.
Investments in alternatives or other less liquid assets will need active management by an advisor via an SMA.
Increasing popularity in direct indexing via Vident Access Portfolios is only allowed through SMAs.
Active contributors to charities can still use SMAs by effectively maintaining the funds in their Cash Pool.
Other factors can impact the decision to invest in the pooled models or a separately managed account so best practice is to meet with each client to understand their goals and objectives relating to their DAF assets.
Is there a minimum to open or switch a current BlueGive DAF account to an SMA structure?
BlueGive SMAs can be opened with a $50,000 minimum.
How are fees assessed for an SMA?
There is no sub-advisory fee component for SMAs, as the Ronald Blue Trust advisor has the option charge Investment Management Fees outside of BlueGive; however, the DAF admin fee remains the same for SMAs as commingled pools:
60bps for balances up to $1M
20bps for balances above $1M
How do I transfer money from my SMA to my BlueGive DAF or Vice-versa?
This step can be completed by either you or your advisor. Once you complete the transfer request, it will take 3-5 business days for the funds to be available on your BlueGive DAF.
Click on Invest on the homepage --> click on Request Transfer in the top right corner
Switch the Transfer From to Investments & Transfer To to Cash & Cash Equivalents --> Enter the transfer amount & click Confirm
If you want to transfer cash from the BlueGive DAF to the SMA, you would do the opposite of the steps above
Transfer from would be Cash & Cash Equivalents-->Transfer To would be Investments
**As a best practice, we suggest having at least 3 months worth of giving money in your available DAF balance.