A Separately Managed Account (SMA) is a portfolio of securities directly owned by the investor and managed according to a specific discipline and/or style by a professional investment manager.
Types of Separately Managed Accounts
The investor delegates full control of the portfolio to the investment manager who devises appropriate strategy and implements it. It is investment manager’s duty to keep investor up to date regarding his portfolio’s allocation and performance.
Non Discretionary SMA:
In this type of SMA, the investment manager only suggests the investment idea. The choice as well as the timing of the investment decision rest solely with the investor. However, the implementation of the approved strategy may be implemented by the investment manager.
Benefits of Seperatley Managed Accounts
Tailored portfolio according to the risk and return profile.
Access to the professional investment managers.
Key Elements in SMA Structure
At Habib Asset, we customized your portfolios and mandates to achieve the investment objective according to the risk/return appetite.