iA Private Wealth Revolutionizes Investment Management with Elite UMA Enhancements

In the ever-evolving landscape of investment management, iA Private Wealth has taken a bold step forward with the enhancements to its Elite Unified Managed Account (UMA) program. This move is not just a technological upgrade; it's a strategic shift that aligns with the current market trends and client needs, offering a more efficient and personalized investment management approach. But what does this mean for the future of investment advisory services, and how will it impact client satisfaction and advisor productivity?



The Elite UMA program at iA Private Wealth is a game-changer. It includes a mix of separately managed accounts (SMAs), pre-packaged portfolios of mutual funds and exchange-traded funds (ETFs), and standalone funds and ETFs, which can be held in different combinations. This flexibility allows for more tailored management, including tax-loss harvesting and excluding certain companies, which was previously only available to high-net-worth clients through SMAs. The democratization of SMAs, as noted by Drew Brown of CGI Inc., opens up more investment strategies to more investors, making the strategies accessible and driving down costs. This accessibility and cost efficiency can lead to higher client satisfaction, as clients benefit from more tailored investment strategies without the high costs typically associated with SMAs.

The adoption of UMAs by iA Private Wealth and other firms significantly impacts the role of investment advisors. By delegating investment management tasks to the UMA platform, advisors can focus on more bespoke client support and advice. Chris Mohr, an investment advisor at iA Private Wealth, noted that before adopting UMAs, "there was always a stack of work waiting." However, "one year into the program," he observed that while they still don't have any downtime, they do have more time to serve clients. This shift in responsibilities means advisors can spend more time on high-value activities such as detailed financial planning, which clients value most.

Moreover, the use of UMAs allows advisors to focus on their core competencies, such as providing advice and determining appropriate risk and return for investment strategies. James Gauthier, vice-president of investment products and platforms at iA Private Wealth, emphasized that the firm wants "advisors to offer a value proposition of providing advice, determining what’s appropriate – the risk and return for investment strategy – and then delegating the nuts and bolts of that to investment professionals." This focus on advice and strategy can lead to more satisfied clients, as they receive personalized and expert guidance tailored to their financial goals and risk tolerance.

The adoption of UMAs can enhance advisor productivity by reducing the time spent on low-value activities such as getting consent for trades. Scott Sullivan, head of Canadian wealth management advice and solutions at Edward Jones, noted that by taking on a UMA structure, advisors are moving away from "a low value-add activity – getting consent for a trade – in exchange for more time for high-value activities with clients." This shift in responsibilities allows advisors to be more productive, as they can focus on activities that add more value to their clients and their business.

In summary, the enhancements to the Elite UMA program at iA Private Wealth align with market trends by offering a more efficient and personalized investment management approach. These enhancements provide strategic advantages by freeing up advisors' time to focus on high-value activities, democratizing access to SMAs, and driving down costs through economies of scale. The adoption of UMAs by iA Private Wealth and other firms impacts the role of investment advisors by allowing them to delegate investment management tasks, offer more tailored and efficient services, focus on their core competencies, and enhance their productivity. These shifts in responsibilities can lead to higher client satisfaction and improved advisor productivity. As the investment landscape continues to evolve, it will be interesting to see how other firms follow suit and what further innovations lie on the horizon.