Columbia Threadneedle has landed a range of model portfolios on Morgan Stanley’s Select Unified Managed Accounts (UMA) platform.
Columbia is now the fourth asset manager, after BlackRock, American Funds and JP Morgan Asset Management, to win a spot on the firm’s UMA platform.
The multi-asset portfolios, which went live on the platform on September 1, are three risk-based allocation portfolios, consisting of the Columbia Active Risk Allocation Moderate Conservative portfolio, Columbia Active Risk Moderate portfolio and the Columbia Active Risk Moderate Aggressive portfolio.
The three risk buckets differ in the level of each portfolio’s equity allocation.
'We’re very excited about the opportunity and the ongoing partnership between Columbia Threadneedle and Morgan Stanley,’ said Scott Brady, head of US product development and strategy at Columbia Threadneedle.
Columbia also has four SMA strategies on the platform: the Columbia Contrarian Core strategy, Columbia Dividend Income strategy, Columbia Select Large Cap Growth strategy and the Columbia Large Cap Value strategy.
The multi-asset portfolios originally launched in July 2015 and are available at Ameriprise as well as Envestnet, having been added to the latter's platform during the second quarter of this year.
All three portfolios have allocations to both active and passive funds from both Columbia Threadneedle and unaffiliated third party providers.
Regardless of which risk bucket investors fit into, they can expect a 50% allocation to third party ETFs like State Street’s SPDR S&P ETF Trust and BlackRock’s iShares MSCI EAFE ETF, a 40% allocation to the Columbia Adaptive Risk Allocation fund and a 10% allocation to the Columbia Alternative Beta fund.
The overall portfolio construction and implementation is overseen by Columbia Threadneedle’s asset allocation group, led by Joshua Kutin. The team manages over $70 billion in assets under management, as of June 30.
The portfolios are managed by Kutin and Alexander Wilkinson.
‘We have a history of working very closely with our partners and we work together with them to find a place where we can deliver our investment expertise to them to help their financial advisors meet the needs of the investor,’ Brady said.
Morgan Stanley’s global investment manager analysis team, led by Alper Daglioglu, must approve strategies before they can be added to the Select UMA platform.
A Morgan Stanley spokeswoman declined to comment.
Morgan Stanley’s wealth advisory solutions team, led by Paul Ricciardelli, also offers a wide range of model portfolios for advisors. To find out more about these, read our profile here.
There has been an ongoing trend of asset managers streamlining their focus towards building model delivery products, especially third-party multi-manager portfolios. Other managers to increase attention towards the model space include American Funds and Pimco.
At the end of January, Pimco launched three ranges of model: Taxable Fixed Income, Tax-Aware Fixed Income and Accumulation.
In February, American Funds landed a range of three retirement income models on Morgan Stanley’s Select UMA platform. Raymond James, RBC Wealth Management, BB&T Bank, AssetMark and Envestnet also all offer model portfolios from American Funds.