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January 18, 2024

Separately Managed Accounts (SMAs)

Separately Managed Accounts (SMAs)

Separately Managed Accounts (SMAs) have emerged as a versatile option for those desiring a more personalized approach to investment. This blog post aims to unravel the intricacies of SMAs, exploring what sets them apart, how they work, and the advantages they offer to investors seeking a hands-on, individualized approach to managing their assets.

Understanding Separately Managed Accounts

Separately Managed Accounts (SMAs) represent a departure from traditional investment vehicles by providing investors with a more personalized and direct ownership experience. Unlike mutual funds or exchange-traded funds (ETFs), SMAs are individual investment portfolios managed by professional investment managers. Each investor's account is unique, allowing for customization based on their specific financial goals, risk tolerance, and preferences.

Key Features of Separately Managed Accounts

Tailored Investment Strategies
The hallmark of SMAs is the ability to tailor investment strategies to meet the individual needs of each investor. Whether an individual is focused on capital preservation, income generation, or a combination of both, the portfolio can be customized accordingly.

Direct Ownership of Securities
Investors in SMAs directly own the individual securities within their portfolios. This direct ownership provides transparency, allowing investors to see and understand the specific holdings in their accounts. It also grants them more control over the tax implications of buying or selling specific securities.

Professional Management
SMAs are managed by experienced investment professionals or advisory firms. These managers conduct thorough research, employ analytical tools, and make strategic investment decisions to align the portfolio with the investor's financial objectives.

Benefits of Separately Managed Accounts

Customization with Precision
SMAs offer a high level of customization, enabling investors to align their portfolios with specific investment goals, ethical considerations, or sector preferences. This precision allows for a tailored investment approach that may not be achievable with traditional investment vehicles.

Tax Efficiency
Direct ownership of securities in SMAs provides investors with greater control over the tax implications of their investments. This can lead to more efficient tax planning, including strategies such as tax harvesting and managing capital gains distributions.

Transparent Portfolio Visibility
Investors in SMAs have clear visibility into their portfolio holdings and transactions. This transparency fosters trust and confidence in the investment process, as investors can easily monitor how their money is being invested and make informed decisions.

Professional Expertise with a Personal Touch
SMAs combine the professional expertise of investment managers with a personalized touch. The direct relationship between the investor and the manager allows for effective communication and a deeper understanding of the investor's financial goals.


Separately Managed Accounts offer a unique and personalized approach to wealth management, allowing investors to tailor their investment strategies to their specific needs and preferences. With features like direct ownership, customization, and professional management, SMAs provide an avenue for investors seeking a more hands-on and individualized approach to growing and preserving their wealth. As with any investment decision, thorough research and consideration of personal financial goals are crucial steps in determining whether SMAs align with an individual's investment strategy.

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