BMO Nesbitt Burns today launched Canada’s first Unified Managed Account (UMA) program, which it says combines the individual security ownership and customization benefits of traditional separately managed accounts with the diversification and operational efficiencies of a mutual fund wrap program.

The brokerage firm says the new the new BMO Nesbitt Burns Architect Program will allow its investment advisors to create a customized portfolio for clients that combines separately managed accounts, mutual funds, exchange traded funds, and hedge funds, into a single account.

The program pilot begins today and will be available through all BMO Nesbitt Burns reps across the country in September.

“Clients have told us that they want a simpler way to manage their assets. Right now in this industry, you need multiple accounts and investment vehicles to get a diversified solution. Our new Architect Program consolidates everything into one account with one fee and one statement,” says Sarah Widmeyer, vp and managing director, managed assets group, BMO Nesbitt Burns.

“We are the first to offer the UMA in Canada and we are proud to be able to bring this to our BMO Nesbitt Burns clients,” adds Widmeyer.

Other client benefits include:

  • Inside of the account, all investment vehicles are separated, enabling the advisor and the client to clearly track performance;
  • Strategic asset allocation;
  • Automatic rebalancing;
  • Better risk management;
  • Intelligent cash management, including contributions, withdrawals and income requirements;
  • Enhanced tax management: avoidance of superficial losses and automatic tax loss harvesting; and
  • Manager and style diversification at lower minimums.



The minimum investment is $150,000.

The program offers both pre-configured model portfolios designed by specialist teams at BMO Nesbitt Burns, as well as a full open-architecture offering, which allows advisors to create custom portfolios.

BMO Nesbitt Burns is launching its UMA with Placemark Investments of Dallas as the program’s overlay portfolio manager (OPM). Placemark is responsible for executing all trades and implementing program features, such as tax management and rebalancing.

Placemark is the industry’s leading OPM to financial service companies offering UMAs, and worked closely with BMO Nesbitt Burns to create enhancements specifically for the Canadian market.

“UMAs are the leading edge of managed account products because they are simpler and more efficient for clients, advisors and distributors,” said Lee Chertavian, CEO of Placemark Investments. “We have helped create many UMA programs for sponsors in the U.S. and we expect the demand for UMAs in Canada to be just as strong.”