Unlike mutual funds, which consist of pooled investments, separately managed accounts (SMAs) are private accounts that are independently managed by an investment manager.
SMAs illustrate the potential benefits of having a specific set of investments selected around certain investing objectives. Their highly customized structure may allow investors to better target and satisfy their specific investing needs.
SMAs require a higher level of initial investment so they generally target high-net worth retail investors with minimum initial investments that can start around the $100,000 mark.
Convenience & Accessibility
Especially when it comes to taxes, SMAs provide certain efficiencies that pooled investment structures do not.