Why are separately managed accounts growing in popularity with investors?

Excerpt follows:

Cumberland has utilized separately managed accounts (SMAs) to execute its fixed-income strategy since the company’s inception in 1973, long before SMAs were popularized in the early 2000s.

The reasons for managing money in this fashion are the same today as they were then:

· Transparency (You know what you own).

· Flexibility to make strategic changes.

· Ability to manage transaction costs and best execution.

· Active management.

SMAs offer individually catered portfolio management to address clients’ objectives, including tax management, income production, state-specific needs, cash flow-specific needs, and the ability to institute investment restrictions. SMAs differ from pooled vehicles like mutual funds and ETFs in that each portfolio is unique to a single account.

Continued at The Herald-Tribune: https://www.heraldtribune.com/story/business/2023/12/04/patricia-healy-separately-managed-accounts-are-growing-in-popularity/71671806007/

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