T. Rowe Price Separately Managed Accounts

Unleash the benefits of SMAs for your clients

With beneficial share ownership and a transparent view of your client's portfolio, our SMA can be an attractive solution.

Discover the key benefits of Separately Managed Accounts (SMAs)

Convenience

A professionally managed share portfolio with less adminstrative and compliance burden than owning direct shares.

Transparency

Access holdings and transaction history to monitor portfolios against goals and objectives.

Potential Tax Efficiencies

Your clients are the beneficial owners of the underlying shares and dividends are paid to each individual account.

Professional Management

Having a highly-experienced investment team manage the portfolio can lead to better investment outcomes for your clients.

Concentrated Global Equity SMA

A concentrated, style-balanced global equity portfolio

The Concentrated Global Equity SMA applies an active, style-balanced approach to a global opportunity set to seek to create a concentrated, global, sector-diversified portfolio of high conviction investments with an aim to provide consistent, positive excess returns against the benchmark over a full market cycle.

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About SMAs

Key differences: SMAs, Managed Funds, Direct Equities

Feature	Separately Managed Accounts	Managed Funds	Direct Equities	Your Business Benefit When Using SMAs
Beneficial Ownership	A separate account is set up for each client who is the beneficial owner of the underlying securities.	Clients hold units in a pooled fund.	Your client is the beneficial owner of each security they hold.	A neat all-in-one professionally managed equities investment solution which reduces the timeconsuming management of direct equities while decreasing the potential compliance risks.
Transparency	Clients can see the individual securities that are held within an SMA portfolio at any time.	Clients can generally view underlying investments on a quarterly basis.	Clients can see the individual securities they hold at any time.	A clear view of your client's portfolio holdings and transactions for better-equipped and transparent client conversations.
Professional Management	The model portfolio is managed by experienced investment professionals, including all corporate actions.	Like SMAs, experienced investment professionals manages the fund.	You are responsible for managing these investments, including all corporate actions.	Utilising an experienced local investment team and one of the world’s largest investment research platforms to select high-quality companies across sectors and industries.
Taxation	Each client will have an individual cost base for their listed securities, so there are no tax consequences as a result of transaction from other investors.	Capital gains tax liabilities are shared across all investors.	Capital gains tax is only applicable when the client sells direct ownership of the stock.	Clear and regular reporting of taxation liabilities to manage your client's taxation effectively without needing to worry about other investors.
Fees	Ongoing fees apply such as management, administration, and brokerage fees.	Ongoing fees may apply such as the management, administration, and performance fees.	Only brokerage costs apply.	A cost-effective solution with no hidden fees or additional transaction costs to explain to your clients.

Frequently Asked Questions

What are separately managed accounts (SMAs)?

A separately managed account (SMA) is a professionally managed portfolio composed of stocks and other securities that are directly owned by an investor. Direct security ownership can offer financial professionals increased flexibility to align holdings with client needs and preferences and to have more control over tax management. Increased visibility of transactions and holdings allows for a more individualized level of portfolio management, in which financial professionals can monitor the portfolio against client goals and objectives.

SMAs are a vehicle of choice for many investors, particularly those looking for more robust tax management, primarily because this investor segment tends to have more robust needs around tax management, customization, and transparency, and therefore may benefit most from the direct ownership of the underlying securities conferred by SMAs. Since the investor must own each underlying security in an investment portfolio, SMAs tend to have higher minimums to ensure that a given strategy can be implemented.

What is the difference between a managed account and a separately managed account? How do SMAs differ from other investment vehicles?

The term "managed account" refers to a portfolio of investments that is professionally managed on behalf of an investor. An SMA is a type of managed account that’s typically focused on a targeted investment strategy.

Ownership structure is the primary differentiator between SMAs and other types of investment vehicles. While managed investments are pooled investment products—in which an investor owns a share in the fund, but the fund owns the underlying securities—the securities in an SMA are owned directly by the investor.*

What are the advantages of separately managed accounts (SMAs)?

How Investors Benefit:

Tax Management: Direct ownership of the underlying securities enables robust and personalised tax management.
Transparency: Investors have their own cost basis and can see their holdings and trading activity.
In-Specie Funding: SMA investors may be able fund a new portfolio in kind with existing liquid securities (subject to the portfolio manager's and adminstrators' discretion).

How Financial Advisors Benefit:

Client Needs: SMAs allow financial professionals to accommodate investors, who have more robust needs around tax management, customisation, and transparency—and therefore benefit from the direct ownership of the underlying securities conferred by SMAs.
Expertise: Having a highly-experienced investment team manage the portfolio can lead to better investment outcomes for your clients and lower compliance risk for your business.

SMA Educational Resources

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