New Private Account Product Unveiled

September 18, 2002 ( - Managed Account investors looking for a variety of investing styles among their money managers might find what they're looking for in a recently unveiled product.

Citigroup Asset Management (CAM) and Manulife Financial announced that the two financial services companies are teaming up to offer Manulife Private Account, with management from a variety of asset managers contained in one account.

The account will be coupled with financial advice from independent financial planners and broker/dealers.

CAM will act as the “Overlay Portfolio Manager” in the new Manulife Private Account to coordinate and implement the investment decisions of the program’s underlying investment managers.

The investment managers in the program, as selected by Manulife Financial include:

  •  Franklin Templeton
  •  Deutsche Asset Management
  •  OFI Private Investments (a division of Oppenheimer Funds)
  •  Radnor Capital Management (a division of U.S. Trust)
  •  Salomon Brothers Asset Management, Inc. (a part of CAM).

In the past, investors seeking multiple investment styles and money managers in managed accounts generally had to initiate separate agreements with different firms, the announcement said.

Manulife: Deal Grew From CAM’s Managed Account Experience

Manulife Financial said that it chose to link up with CAM due to the firm’s five years of experience in managing these types of accounts, its advanced technology, and its portfolio implementation skills, the announcement said.

Since clients own all portfolio securities directly (rather than in a pooled arrangement as in a mutual fund), they have greater control over the construction of their portfolios through the ability to impose restrictions on their accounts and to direct tax-related sales, according to the announcement.

In addition, the Manulife Account will feature consolidated statements and individualized performance reporting.
Manulife Financial said it intends to distribute the account through its US distribution network, including independent financial advisors and broker/dealers.