What’s a unified managed account?

A unified managed account (UMA) is a professionally managed investment account that integrates multiple investment vehicles, asset classes, and strategies under a single umbrella. Unlike traditional investment accounts, which may require separate accounts for different asset types, a UMA provides a consolidated, tax-efficient, and personalized portfolio within one structure.

These accounts are managed by third-party investment advisors or wealth managers who customize portfolios based on an investor's financial goals, risk tolerance, and time horizon. These accounts typically include a diverse mix of mutual funds; exchange-traded funds (ETFs); individual stocks, bonds, and alternative investments; and separately managed accounts (SMAs). By combining different asset classes, UMAs provide a comprehensive, diversified approach to wealth management. They're usually offered as part of an advisory program, with all assets managed under a single, all-inclusive advisory fee.

UMAs have evolved from the popularity of SMAs, which also offer investors a professionally managed account. However, SMAs generally consist of a single targeted strategy, so an investor who wants to invest across multiple strategies would likely have to open multiple SMAs.

As of June 2023, the most up-to-date data, assets in SMAs and UMAs have grown to over $117 billion, up from just over $30 billion in 2013. This growth, averaging 14.6% per year, reflects investors' growing interest in personalized, professionally managed portfolios. Over the past two decades, SMA programs have evolved, often integrating with UMA platforms to streamline administration and improve client experience. This shift has made it easier for investors to access diversified, tailored investment solutions.¹

Source: Manulife Investment Management, 2025. ETFs refer to exchange-traded funds. SMAs refer to separately managed accounts.

What are the benefits of investing through a UMA?

The explosion in popularity of UMAs has been driven in part by the benefits they can offer advisors, not least in terms of improved efficiency and increased productivity. The managed account structure removes many of the tasks and administrative burdens attached to traditional advisory accounts, which allows advisors to focus on other aspects of their practice, such as financial planning, marketing their business, or meeting with clients.

UMAs have traditionally been associated with high-net-worth investors due to the high investment minimums often required for underlying products, such as SMAs. For example, SMA models typically have minimums of around $100,000, and investing in multiple models can require several hundred thousand dollars. UMAs themselves have historically come with minimum thresholds ranging from $250,000 to $1 million.

However, this perception is outdated. Many investment dealers are now rolling out UMA functionality to 100% of their client base. Access to a UMA is no longer restricted by account size; instead, a client's asset level simply determines which specific products or models are held within the UMA. Whether clients have $20,000 or $2 million, they can still benefit from the UMA structure. The model is now about scalability and customization, not exclusivity.

UMA standards vary by provider, and investors will typically sign an agreement detailing the management of the account, its fees, and its allowable investments and structuring. UMA investors typically pay annual management fees based on total assets under management (AUM). Fees tend to decrease as AUM increases but can range from 1.3% to 3.0% per year.

In return, UMAs offer several benefits to investors, particularly for those who don’t want to be involved in day-to-day decisions around trading securities in their accounts. By opting for a UMA, investors can delegate trading discretion to a registered portfolio manager. UMAs also provide clients with superior reporting, typically quarterly. This allows investors to have more constructive conversations with their advisors regarding asset allocation decisions, rebalancing, and overall risk and return objectives.

Investing through a UMA

UMAs are generally offered by the same dealer programs that offer SMAs. Typically, the provider will work with investors to integrate all their assets into one account. Once the assets have been aggregated, the provider will work with the client in several ways. The UMA provider can examine the total portfolio for a comprehensive plan. This can include an overlay strategy that seeks to manage the portfolio from a targeted asset allocation diversification approach.

Often, a UMA provider will analyze the portfolio to ensure it conforms to modern portfolio theory, given the comprehensive and efficient frontier the combined assets create. UMA providers may also offer investors new options with affiliated companies and products that might help clients better align their total portfolios for risk/return optimization.

UMA providers can offer clients more streamlined reporting on their investments, with greater support for comprehensive tax planning. They can also work with clients to determine a rebalancing schedule that fits their overall investing strategy.

A unified approach—but it's not for everyone

UMAs have become increasingly popular with investors seeking a simplified, integrated approach to managing portfolios. By consolidating various investment products into a single account, UMAs offer investors greater transparency, simplified reporting, and more cohesive portfolio management. However, depending on individual objectives and circumstances, UMAs aren’t a one-size-fits-all solution, and certain entry barriers and structural considerations may limit their suitability.

Investors should carefully evaluate the associated fees, features, and overall service before selecting a provider. While UMAs offer notable advantages, they may not be ideal for everyone, particularly those with straightforward investment needs—such as index fund investors or individuals with smaller portfolios­—who may not require the level of customization that UMAs offer.

1 Fee-based Report Winter 2024—The Evolution of SMA/UMA Programs, Investor Economics, 2024.