The Preferred Diversified Portfolio Program (PDP) allows for the management of multiple investment products (money managers, mutual funds, and exchange traded funds) in a single client account. It is a simple, yet comprehensive solution to investing that includes goal-setting, asset allocation, and professionally managed investments in a single account structure.
For a minimum of $1 million, clients are able to invest in discretionary model portfolios offered by Morgan Keegan’s Wealth Management Services (WMS) Investments Department. For a minimum of $250,000, clients and their financial advisors are able to create custom allocations, using selected money managers from the Preferred Managers Program, more than 9,000 mutual funds and a wide range of exchange traded funds.
Features
Tax Optimization – It is easy to focus on investment gains and overlook the tax consequences of investment transactions. In reality, taxes can have a significant impact on your investment portfolio. Within the PDP Program, we work to balance tax issues against other important goals, such as maintaining proper diversification and generating positive returns.
Automatic Portfolio Rebalancing – Rebalancing your portfolio at regular intervals is as important to long-term investment success as is designing an investment plan with the proper asset allocation. The asset allocation percentages implemented upon initial investment will change over time as the result of strong performance in certain asset classes. For this reason, it is important that investors periodically rebalance their portfolios so that the risk of the portfolio, as well as the long-term return potential, remains in line with the original investment plan. The PDP Program provides investors regular reports to track progress and an easy-to-execute option of having their portfolios automatically rebalanced on a periodic or as needed basis.
Fees
Morgan Keegan has negotiated reduced fees and minimum investment levels with the selected money managers. Annual fees are based on the type of investment (money manager, mutual fund, etc.) and level of assets under management. Fees cover management fees, transaction charges, manager search, and performance evaluation.
Manager Due Diligence
While much of our due diligence takes place behind the scenes, its importance should not be underestimated. Morgan Keegan’s WMS Due Diligence Group (DDG) takes the due diligence process very seriously. Our ability to be an unbiased consultant to our clients rests on our ability to deliver objective investment advice. The DDG provides due diligence, manager searches, and general evaluations of our program's money managers. Selected mutual funds are continuously monitored by a dedicated portfolio specialist.
Performance Review
Once the investments have been selected for your portfolio, we continue to evaluate performance and the resulting progress toward your stated objectives. This ongoing review process also allows us to monitor each investment’s adherence to his/her own philosophy and insures that any changes that could affect the suitability of your allocation are conveyed to you.
Other Features & Services
- Development of investment objectives
- Development of a written Investment Policy Statements
- Evaluation of past investment performance & asset allocation
- Quarterly economic analysis and commentary
All investment products including mutual funds involve risk. Principal value and investment return will fluctuate, so an investor's shares/units when redeemed may be worth more or less than the original amount. A complete explanation of risks, charges and expenses may be found in the prospectus. Investors should carefully read and understand the information contained in the prospectus before investing or sending money.
