Using Fractional Shares to Build Multi-Manager UMA Model Portfolios

In a separate blog post, we discussed the growing interest in fractional shares, especially among investors interested in diversified portfolios with a large number of stocks they might not be able to afford if they had to buy whole shares.

This discussion focuses on taking fractional share ownership to a new level in your practice by using the Freedom Advisors platform to create multi-manager UMA model portfolios for your clients*.

Access to the Inaccessible

Thanks to recent technology innovations, individual investors can buy fractional shares of their favorite companies. But Freedom Advisors, which has offered fractional shares for 20 years, has elevated the fractional share investment world with technology that provides your clients access to many of the world’s premier investment managers.

Since money managers on the Freedom Advisors platform have SMA investment minimums as high as $10 million if you are able to invest with them directly, even most higher net worth investors would be disqualified from investing. Yet, for a nominal minimum investment, we make available hundreds of highly diversified multi-manager UMA models:

• Money manager minimums are waived
• The integrity of portfolio construction is not compromised
• Highly diversified multi-manager UMA models with individual securities for as little as $250,000
• Highly diversified models with ETFs or funds for as little as $25,000

You can select from 600 pre-built models or build your own models with the money manager strategies best suited for your clients for any investment objective, time horizon, risk tolerance, or market scenario. This allows you to offer your clients broad diversification across equity styles, asset classes, geographic regions, and philosophies.

Democratizing Wealth Management

The democratization of institutional wealth management has been the mission of Freedom Advisors since its inception. We have always believed you should have the ability to invest in highly diversified portfolios with a combination of money managers who have distinguished and proven themselves over time.

Many investors have historically been excluded from investing with many of these managers due to manager investment minimums or investor accreditation. Freedom Advisors overcomes those obstacles and opens a universe of sophisticated investment strategies to your clients.

For more information, please download Fractional Shares: Investment Technology that Removes Barriers.

*Fractional shares are not available at every custodian.