Merrill Lynch, Pierce, Fenner & Smith Incorporated
Managed Account Advisors and Merrill Lynch provide investment advisory services through Bank of America programs like Select Portfolio Solutions. Managed Account Advisors manages client assets on a discretionary basis, implementing model-based recommendations from the Chief Investment Office, affiliated researchers, and third-party managers. Merrill Lynch provides non-discretionary strategies constructed by internal investment professionals and executes transactions as a broker-dealer. The program offers a wide range of strategies organized by asset class and investment style, utilizing individual equities, fixed-income securities, mutual funds, and exchange-traded funds. Clients maintain a relationship with Bank of America Private Bank or Workplace Benefits, which selects appropriate strategies based on the client's financial circumstances and risk tolerance.
Fee Structure
Managed Account Advisors and Merrill Lynch charge an asset-based fee called the Account Fee, which consists of two parts:
- Investment Management and Trust Fee — Paid to Bank of America for its services, with rates set in your client agreement and subject to negotiation based on your portfolio value and account size.
- Style Manager Expense — Paid to the specific manager of your chosen strategy, generally ranging from 0.00% to 0.50% per year, and does not change based on portfolio size.
Total fees vary depending on the specific strategies and account size, and are deducted directly from your account on a regular basis.
