Is A Managed Portfolio Right For You?

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Is A Managed Portfolio Right For You?

Do you lack the time or expertise to build a well-diversified portfolio that meets your long-term goals? Would you like professional help with your investment decisions?

Consider a managed portfolio

This is a professionally designed and managed investment portfolio that can include a mix of investments and separately managed accounts (SMAs) tailored to an investor’s risk profile. One managed portfolio, for example, may be designed for investors with a short investing horizon and thus a low risk tolerance, while another may be geared toward investors with a long investing horizon. Yet another portfolio may be somewhere in the middle.

How Managed Portfolios Work

These portfolios are typically overseen by investment professionals who make asset allocation decisions and must adhere to the perdetermined allocation targets for each portfolio. The committee may have the ability to veer slightly off target in order to address the current investing or economic climate, but they generally must keep the allocation of each portfolio within a fairly close range of its target investment mix. The portfolios are typically rebalanced regularly or whenever they veer too far from their target due to market performance.

In exchange for professional management and oversight, investors typically pay a set annual fee based on the account balance they have in the portfolio. However, in certain programs, often called “wrap accounts,” they don’t pay trading costs separately as they would with a typical brokerage account.

Why Managed Portfolios Make Sense

For investors who prefer a hands-off investment plan guided by professionals, a managed portfolio may be the right choice. You select a portfolio specifically designed for your risk tolerance level, but you don’t have to spend time researching and selecting individual investments or rebalancing your assets. Investment professionals handle everything.

Fund expenses can be another benefit. Managed portfolios often have access to fund share classes generally unavailable to mainstream investors. These share classes—typically reserved for people who invest, say, more than $1 million in the fund—charge lower fees than regular share classes. Those savings are passed along to the portfolio’s investors.

Making the Right Choice

While managed portfolios make sense for many investors, they’re not for everyone. Some investors may prefer to design their own portfolio and play a more active role in managing their portfolio. A managed account may also not make sense for investors who are completely risk averse and thus prefer savings options. Even when invested conservatively, managed accounts are not insured or guaranteed from loss.

An advisor from BOK Financial Advisors can discuss your long-term investing goals and objectives and help you create a portfolio that meets your needs. If a managed portfolio is the right fit, your advisor can help direct you to a portfolio that matches your risk profile.


Prepared by WSJ Custom Studios

© 2017 BOK Financial. Services provided by BOKF, NA. Member FDIC. Securities, insurance and advisory services offered through BOK Financial Securities, Inc., member FINRA/SIPC and a subsidiary of BOK Financial Corporation. Services may be offered under our trade name, BOK Financial Advisors. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

All investments involve risk, including loss of principal. Past performance does not guarantee future results. There is no assurance that the investment process will consistently lead to successful investing. Asset allocation and diversification do not eliminate the risk of experiencing investment losses. Risks applicable to any portfolio are those associated with its underlying securities.

The opinions expressed herein reflect the judgment of the author at this date and are subject to change without notice and are not a complete analysis of any sector, industry or security. The content in this document is for informational and educational purposes only and does not constitute legal, tax or investment advice. Always consult with a qualified financial professional, accountant or lawyer for legal, tax and investment advice.

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BOK Financial Corporation (BOKF) offers wealth management and trust services through various affiliate companies and non-bank subsidiaries including advisory services offered by BOKF, NA and its subsidiaries BOK Financial Asset Management, Inc. and Cavanal Hill Investment Management, Inc. each an SEC registered investment adviser. BOKF offers additional investment services and products through its subsidiary BOK Financial Securities, Inc., a broker/dealer, member FINRA/SIPC, and an SEC registered investment adviser and BOK Financial Private Wealth, Inc., also an SEC registered investment adviser.

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Investments and insurance are not insured by the FDIC; are not deposits or other obligations of, and are not guaranteed by, any bank or bank affiliate. All investments are subject to risks, including possible loss of principal. The content on this website is for informational and educational purposes only and does not constitute legal, tax or investment advice. Always consult with a qualified financial professional, accountant or lawyer for legal, tax and investment advice. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

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