There are a number of ways to customize an SMA. It can be structured to exclude investments due to concentrated, single-stock positions (e.g. holding too much of one’s company’s stock), or the desire to avoid investing in certain product areas (e.g. tobacco).
What is a Separately Managed Account (SMA)?
SMAs provide investors with an expanded choice in how they access professional investment management. An SMA is an investment vehicle composed of stocks, bonds, cash or other individual securities and is overseen by a professional money manager. With an SMA, an individual investor directly owns the securities in the portfolio, unlike investing in a mutual fund or exchange-traded fund (ETF)1, where money is pooled with that of other investors. As a result, SMAs offer flexibility to customize portfolios to address clients’ personal preferences and investment objectives.
Flexibility
Greater tax efficiency
Unlike a mutual fund, where capital gains are passed on to all investors, an SMA investor is only taxed on realized gains in their specific portfolio. Because an SMA contains individual securities, capital gains can be offset by instructing your manager to sell investments that will produce a capital loss through tax-loss-harvesting.
Specialized service
With an SMA, our professionals provide thoughtful onboarding and support, which includes regular comprehensive reporting. Your account statements show the securities you own, number of shares and many other details to help you understand how your investments are performing.
Why Franklin Templeton
Investors looking for a personalized approach to investing that provides the customization, transparency and tax efficiency they require may consider separately managed accounts (SMAs). Working with Franklin Templeton, one of the largest providers of SMAs, investors have the flexibility to choose from a variety of customized investment strategies – accessing a complete suite of equity and fixed income offerings, including single-style, balanced or multi-discipline accounts or individualized portfolios.
A leader in retail Separately Managed Accounts
One of the largest providers on the market
Over $145 billion in SMA asset under management, making us one of the largest providers in the market.2
Diverse investment capabilities
Diverse investment capabilities across asset classes, including direct/custom index portfolios to meet the evolving needs of clients.
Experience & expertise
Strength and expertise gained from decades of active management and an enduring commitment to reliable, personalized service.
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