Managed Account Advisors and Merrill Lynch, Pierce, Fenner & Smith offer investment advisory and management services in connection with the Select Portfolio Solutions program offered by Bank of America. Managed Account Advisors manages client assets on a discretionary basis, implementing model-based strategies or managing portfolios according to recommendations from various investment managers, including Bank of America's Chief Investment Office and third-party style managers. Merrill Lynch provides non-discretionary investment advisory services and strategies constructed by its Chief Investment Office. The program allows clients to select specific investment strategies aligned with their asset class preferences, tax sensitivities, and risk tolerances. Client accounts are subject to an account fee that includes a management fee paid to the bank and an optional style manager expense depending on the chosen strategy. The firms emphasize comprehensive risk disclosures, various methods of analysis including fundamental analysis, and procedures for managing conflicts of interest.
Fee Structure
Clients participating in the program pay an account fee that is a percentage of the assets in their portfolio. This fee is comprised of two parts:
- Bank Management Fee — Paid to Bank of America for its services, with rates set forth in individual client agreements and subject to negotiation based on market value, asset allocation, and related accounts.
- Style Manager Expense — Ranging from 0.00% to 0.50% annually, this fee compensates the specific investment manager handling the chosen strategy and does not change based on portfolio size.