Multi-Discipline Account

Multi-Discipline Account

A type of investment account that allows access by several specialized investment managers within one main account. The account is split into several sub-accounts that are separately run by managers with relevant expertise. The multi-discipline account provides investors with an efficient way to get professional investment management and asset diversification. It is also referred to as a "multi-style" and "multi-strategy account".

Notes:

These type of investment accounts were created as an alternative to separately managed accounts that have only one type of management expertise and make it more difficult to diversify. Generally the minimum amount needed to invest in a separately managed account is around $100,000 while the minimum for a multi-discipline account is $150,000. So, with the separately managed account, if an investor wanted to split assets into 60% equity and 40% fixed income, he or she would need to open two separately managed accounts and would need at minimum $200,000. With the multi-discipline account, however, the investor needs only to open the one account, requiring only a total of $150,000, and separate the assets into two sub-accounts.

See also: Asset Management, Investment Advisor, Managed Account, Mutual Fund, Mutual Fund Advisory Program, Risk Tolerance, Separate Account, Wrap Account