Unified managed accounts, the next big product solution for high net worth clients in the US after separately managed accounts, were introduced for the first time to Bank of America’s wealthy clients, and received a face-lift at Morgan Stanley.

Key to the UMA structure is an overlay manager, similar to an asset consultant in a multi-manager fund, to rebalance the portfolio to enhance investment returns and limit tax implications.

Bank of America said its wealthy and ultra-wealthy clients would have access to multiple, institutional-level separate account managers, exchange traded funds and mutual funds in one account utilising an active overlay portfolio manager.

The firm said, most of the 70 investment managers that currently participate in Bank of America's separate account programmes across the gamut of investment styles have agreed to participate in the new UMA programme.

Meanwhile, Morgan Stanley said it enhanced its existing UMA programme, Personal Portfolio, to feature around 600 open-end mutual funds, 100 separately managed account strategies and 50 exchange-traded funds.

The biggest players in wealth management have already or are in the process of launching UMA products as they attempt to win wealthy clients over with high levels of customisation.

Fidelity and Merrill Lynch already have existing technology structures that allow multi-manager-type overlays to be added to a single client’s portfolio mix comprising of SMAs that sit beside mutual funds, direct shares and bonds.

Morgan Stanley said it has now begun to allow investment managers to set their own investment management fees, within a pre-defined range, to allow greater pricing flexibility.

Bank of America’s new UMA programme was built on its existing Consulting Services Portfolio Strategies business, launched for affluent brokerage clients in 2006. The firm already manages $37 billion in its Consulting Services Group.

Dan McNamara, Bank of America Global Wealth & Investment Management Investment Products executive said: "The UMA Program is an industry-leading private-banking programme that allows wealthy clients the convenience of building a customised, well-diversified portfolio through a single account, with a focus on tax-efficiency.”

Bank of America’s UMA will be rolled out to all US Trust, Bank of America Private Wealth Management clients over the coming months, beginning with legacy Bank of America Private Bank clients, the firm said in a statement.