Professionally managed portfolio of securities that uses pooled money to buy investments owned directly by the account holder. SMAs offer customized professional management to clients challenging mutual funds' preeminence as wealth-management vehicles. The chief advantage of SMAs over mutual funds is direct ownership of securities in the portfolio. This permits customization, and provides individual Cost Basis for income tax purposes; the investor, unlike a mutual fund investor, thus has control of the tax consequences of the timing of purchases and Realized Profit or Loss.
Minimum Account Size: $100,000
Cost Effective: A single quarterly or monthly fee covers all professional portofolio management services, and transaction costs as well as secuirty custody, administration and reporting services.
Improved tax-efficiency: A portion of this fee may be deductible for tax purposes but clients should seek independent advice on all tax matters.