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Featured Advisor



Srbo Radisavljevic
Managing Principal/Investment Advisor

Edge Portfolio Management

City:Northbrook

State: IL



BIOGRAPHY:
At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, following Chicago sports, enjoying ethnic cooking, and serving as a school board member for Norridge School District 80.

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High Net Worth Wealth Management: Managed Accounts

Managed accounts, a popular tool for high net worth wealth management, are gaining appeal. Learn more about the trend.

| BY Adriana Reyneri

Managed accounts remain a popular high net worth wealth management tool, and are gaining appeal among less wealthy investors, according to Millionaire Corner research on the attitudes and behaviors of affluent Americans.

Managed accounts give investment control to a professional advisor, and appeal to investors who lack the time, interest or expertise to actively manage their wealth.  More than 60 percent of high net worth investors currently use managed accounts with an average balance of more than $1.7 million, according to a study conducted over the fourth quarter of 2011. (Millionaire Corner defines high net worth investors as individuals from households with a net worth of $5 million to $25 million not including primary residence.)

Use of managed accounts for high net worth wealth management has not changed significantly from 2010 levels, but managed accounts are gaining popularity among Millionaire investors, according to our research. (Millionaire Corner defines Millionaires as individuals from households with a net worth of $1 million to $5 million, not including primary residence.) Half of Millionaires had managed accounts with an average balance of $635,000 at the end of 2011. In comparison, 43 percent of Millionaires had managed accounts with an average balance of $588,000 at the end of 2010.

The Mass Affluent – investors from households with a net worth of $100,000 up to $1 million – are also using management accounts.  Forty-four percent had managed accounts with an average balance of $138,000 at the end of 2011.

Separately managed wrap accounts are a less common tool for high net worth wealth management. Twenty-two percent of high net worth investors had separately managed wrap accounts with an average balance of $1.2 million at the end of 2011, and 20 percent had mutual fund wrap accounts. In comparison, 15 percent of Millionaires and 12 percent of Mass Affluent investors have separately managed wrap accounts. Twenty-three percent of Millionaires and 22 percent of Mass Affluent investors have mutual fund wrap accounts, according to our research, which underscores the growing use of managed accounts – once limited to high net worth wealth management  – among less affluent investors.