Separately Managed Account (SMA)

A Separately Managed Account (SMA) is a personalized investment portfolio managed by a professional asset manager on behalf of an individual investor or entity, such as a family office. Unlike pooled investment vehicles like mutual funds, SMAs offer direct ownership of securities, allowing for greater customization based on the investor's objectives, risk tolerance, and tax considerations. For family offices, SMAs are important because they provide tailored investment strategies, transparency, and control over asset allocation, enabling alignment with the family's long-term financial goals and values. Additionally, SMAs can optimize tax efficiency and facilitate bespoke reporting, which is critical for managing complex, multi-generational wealth.