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Key Concepts: Fees, Holdings Transparency & Program Types

Understand how model fees work, when full holdings are visible, and the difference between UMA and SMA implementations.

Model Delivery Fee

Covers:

  • Implementation

  • Ongoing management via SMArtX

Excludes:

  • Advisor fees

  • Custodian costs

  • External manager fees

Holdings Visibility Rules

Stage

Visibility

Before investing

Top 5 holdings

After investing

Full holdings

Model Comparison vs Help Me Find Models

These are effectively the same function:

  • Compare holdings

  • Identify overlap

  • Support transitions

UMA vs SMA Programs

UMA (Model Delivery via SMArtX)

  • Fully integrated

  • Supports:

    • Rebalancing

    • Customization

    • Platform tools

SMA (Manager-Traded)

  • Manager trades directly

  • Limited platform control

  • Differences include:

    • Custodian setup

    • Reduced functionality

When to Use Each

Scenario

Best Fit

Standard model implementation

UMA

Custom manager relationship

SMA

Final Advisor Takeaway

Understanding these concepts ensures:

  • Accurate client communication

  • Proper expectation setting

  • Efficient portfolio implementation

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