Separately Managed Accounts (SMA)

​A separately managed account (SMA) is a type of investment account that allows an investor to have their portfolio managed on a personalized basis. SMAs are typically offered by wealth management firms or financial advisors and are known for providing customized investment solutions tailored to the needs and objectives of the investor.

One way investors can access SMA services is through the trading platform of a bank. By utilizing the trading platform of a bank, investors can benefit from the convenience and accessibility of managing their investments online while also having the option to take advantage of the personalized investment management expertise offered by SMAs.

When an investor opens an SMA through a bank's trading platform, they are typically required to sign a Limited Power of Attorney (LPOA) agreement. This agreement gives the designated investment manager or advisor the authority to make investment decisions on behalf of the investor within the parameters agreed upon in the SMA.

By giving the investment manager the authority to execute trades on their behalf, investors can benefit from professional investment management expertise and the ability to have their portfolio actively monitored and adjusted based on market conditions and investment objectives.

Utilizing a bank's trading platform to access an SMA can be a convenient and efficient way for investors to have their portfolio professionally managed while also having the flexibility to monitor their investments online. With the added layer of security and oversight provided by the LPOA agreement, investors can have confidence in the management of their investments through the SMA offered via the trading platform of a bank.