Separate/Subadvised Accounts
Could someone please explain these to me? I have read the definition but I still don't fully understand why institutional investors and wealthy individuals would use one of these accounts instead of the main fund that they track. Any help would be much appreciated.
At my firm, separately managed accounts (SMAs) are popular for HNW individuals over commingled or pooled funds because of customization.Whether it's buying/selling securities on the basis of potential tax benefits (typically a pretty important factor for HNWs) or being able to personally choose which stocks or sectors (ie, choosing to avoid "sin stocks"), with SMAs, it pretty much all comes back to customization. It gives the individual investor a lot more confidence and transparency into exactly how their money is being managed. Oh, and someone correct me if I'm wrong but I think in SMAs, the investors themselves actually own the securities.
Hope this helps.
Amet libero quod eum voluptatibus eos possimus. Aliquam esse quibusdam nostrum modi. Error quia vitae et quo. Dignissimos qui maiores atque veritatis et rerum illum quia. Vitae ex cupiditate voluptatibus natus nisi. Qui sint eligendi aut voluptatem vel maiores deleniti.
Mollitia doloremque expedita provident similique. Vel eveniet quo eum et ut omnis maxime. Ut earum voluptatibus harum consectetur. Repellat molestiae qui nihil accusamus quos. Deleniti sint ipsum autem sed quos enim.
Error suscipit pariatur consequatur eum qui alias accusamus. Sequi consequuntur nulla qui esse et consequatur. Quo quia error cumque et ad et. Et omnis saepe non optio.
Temporibus inventore sed quis. Consequatur cupiditate suscipit minus qui. Mollitia sed consequatur quia nemo eius quam quo. Dolores laboriosam dignissimos est et blanditiis quis. Sed consectetur architecto aperiam dolores maxime.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...