Why are separately managed accounts increasing in popularity?

Cumberland has used separately managed accounts (SMAs) to execute its fixed-income strategies 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 tailored portfolio management options to address client objectives, including tax management, income production, state-specific taxation exemption, cashflow needs, and client-specific customizations. SMAs differ from pooled vehicles like mutual funds and ETFs in that each portfolio can be designed uniquely to a single investor. SMAs also dif