Separately Managed Accounts (SMAs)

Separately Managed Accounts (SMAs) are investment portfolios managed by professional asset managers for individual investors.

Instead of investing directly in stocks or bonds, or by means of alternatives such as mutual funds, ETFs, or hedge funds, asset management companies offer individual and institutional investors the opportunity to invest in a separately managed account (also called an individually managed account).

In such accounts, the investments selected by the asset manager are customized to the objectives of the investor.

Although separately managed accounts offer the customers of an asset management an investment vehicle that overcomes all the limitations of RICs, they are more expensive than RICs in terms of the fees charged.

Advantages and Disadvantages of Separately Managed Accounts (SMAs)