Separately Managed Accounts (SMA)
Defining Managed Separate Accounts
A Separately Managed Account is a portfolio of assets under the management of a professional investment firm. The vast majority of such investments firms are called registered investment advisors, which are regulated by of the U.S. Securities and Exchange Commission (SEC) under the Investment Advisors Act of 1940. One or more portfolio managers are responsible for day-to-day investment decisions, supported by a team of analysts, operations and administrative staff. Separately Managed Accounts differ from mutual funds in that each portfolio is unique to a single account, in which the manager has discretion to make investment decisions for each account.