Separately managed accounts (SMAs) allow investors to directly own global securities in a structure that is tailored to their needs in flexible, scalable, personalized solutions. These vehicles are becoming available to a broader group of investors, who can alter their portfolio mix for environmental, social, and governance (ESG) issues; implement unique tax management strategies; exclude companies or industry sectors; and apply other considerations.
The explosion of new vehicles and methodologies offers a glimpse into the future of personalized wealth management—where qualified, experienced financial advisors play an even more important role in helping clients get the most from customized finance.
Extensive knowledge of investment structures and technical expertise in related subjects like tax efficiency, ESG integration, and college planning will be a must. In addition, pursuing deeper client relationships through discussions about charitable giving, retirement, generational planning, and other strategic wealth issues can help the advisor truly understand each individual’s needs, values, and goals. Technology can elevate this connection with clients.
The future looks bright for advisors and their clients. Individuals can get a better, more personalized investment experience, and advisors can seize the opportunity to add value and differentiate their financial services businesses.
In a recent essay
published on Barron’s
, Dimensional Co-CEO Dave Butler explores this in more detail.