Unlock Your Potential
It’s never been easier to offer your strategies to other advisors and intermediaries. For investment managers and advisors running their own Separately Managed Accounts (SMAs), expanding distribution can unlock a new revenue stream and elevate brand visibility.
Explore Different SMA Distribution Methods for Your Firm
There are now multiple ways to distribute your model portfolios—without the operational burdens of the past. Whether you’re just starting or looking to scale, here are three of the most common paths:
Sub-Advisor Relationships
Traditionally the most direct method of distribution, a sub-advisor relationship means you’re approved at the custodian level and manage assets on behalf of another advisor.
Pros:
✅ Full control over portfolio implementation
✅ Transparent relationship with the client
✅ You retain AUM and investment discretion
Cons:
⚠️ Lengthy custodian approval processes
⚠️ May require minimum AUM, GIPS performance, or historical track record
⚠️ Carries fiduciary responsibility and operational oversight
Data Sharing Agreements
A lower-lift option for distributing your model portfolios is to enter into a data-sharing agreement. In this arrangement, you share portfolio updates, and the receiving advisor mirrors the strategy.
Pros:
✅ Minimal operational effort required
✅ No trading or direct fiduciary obligations
✅ Quick to implement
Cons:
⚠️ Limited visibility into client accounts
⚠️ Performance may deviate due to timing of execution
⚠️ Lack of control or accountability for trade accuracy
SMA Platforms & TAMPs
TAMPs and SMA marketplaces offer a centralized and scalable way to publish your models. These platforms take care of the trading, billing, and operations—letting you focus on performance and marketing.
Pros:
✅ Broad exposure to independent advisors
✅ Advisors can easily discover your strategy
✅ Operational support and automation built in
Cons:
⚠️ Limited transparency into platform users
⚠️ Usage reporting can be sparse or delayed
⚠️ Platforms may charge listing or management fees
