Separately Managed Accounts (SMA): ​ Customized Solutions for Individual Needs

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.

​1. An exchange-traded fund, or ETF, is a security that tracks an index, a commodity, or a basket of assets like an index fund, but trades like a stock on an exchange. ETFs experience price changes throughout the day as they are bought and sold.

​​​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.