FYI: If you’re considering creating a models-based Unified Managed Account (UMA) program, the single most important question you need to answer is: sleeves or no sleeves? The main case for sleeves is simple: it lets you generate sleeve-level performance reports that can be used to evaluate the performance of individual model managers. The case against sleeves is more subtle, but ultimately devastating: they're expensive, they lead to inferior tax and risk management, and, worst of all, they’re not useful for the purpose of evaluating model vendors.
What Are Sleeves?
A sleeve is a virtual sub-account, a portion of a portfolio that can be traded separately. It’s a “virtual” account because it doesn’t have its own custodial registration; that is, as far as the custodian knows, a portfolio with multiple sleeves is just one portfolio. The sleeves are entirely created and maintained in an accounting system.
Regards,
Ted
https://www.fa-mag.com/news/the-case-against-sleeves-52676.html?print
