The Basics on SMAs

 

  1. What is an SMA?

    Separately Managed Accounts (SMAs) are investment strategies where you own the individual stocks or bonds directly and can customize the securities in your portfolio. SMAs are not a one-size-fits-all solution like mutual funds or exchange-traded funds (ETFs), which offer partial ownership in a pooled investment vehicle designed to fit a broader investor group.

  2. Who Should Consider an SMA?

    SMAs are best suited for high-income earners, or individuals that have substantial investable assets, looking for a professionally managed portfolio that offers personalization, transparency and tax advantages.

  3. What are the Advantages of SMAs?

    Separately managed accounts provide investors with several key advantages. Customization allows SMAs to align with individual risk profiles and goals while direct security ownership ensures transparency and allows for the added benefit of tax-loss harvesting. Additionally, SMAs are often available for lower fees than mutual funds. SMAs suit investors seeking personalized, long-term investment solutions for effective wealth management.

 

AB: A Long History of Investing

AB SMAs are guided by teams of experienced portfolio managers, analysts and traders with access to in-depth research and advanced technologies.

50+ Years

of experience and expertise

$692 Billion

Firm Assets Under Management

70 Thousand+

Retail Separately Managed Accounts

$36 Billion+

Retail Separately Managed Account Assets

As of July 31, 2023. Source: AB

 

Recommended Products

 
More SMAs 
 

Service That Helps You Work SMArter, Not Harder.

 
Three men and women sitting around a table, women facing camera, engaged in conversation and smiling

Premium SMA Service

We support advisors in building their SMA business at every stage of a client relationship. Our SMA service model is designed to help advisors work smarter, not harder.

LEARN MORE 
 
SMA

Custom Muni Bond

Create a municipal bond portfolio tailored to each client’s needs 

Learn More 

Featured Resources

AB SMA Capabilities

Institutional-quality solutions designed to deliver better outcomes.

Download 
Completion Funds: Helping Round Out Your SMA Portfolio

What are completion funds and why are they in your SMA? Read more to find out.

Download 
A pen and calculator rest on top of a tax return form.
It’s What You Keep: Why Focusing on After-Tax Returns Matters
22 February 2025 / 3 min read
Mark Gleason , Gavin Romm , Paul Robertson

Maximizing after-tax returns should be the goal for assets in investors’ taxable accounts.

Download 
 

Frequently Asked Questions

In addition to the potential lower cost of an SMA, owning individual securities gives you a clear understanding of the securities owned, as well as the market-weighted value of each—not limited to just cost basis, capital gains/losses or number of shares. This ownership and transparency allows for additional benefits through tax harvesting.

 

Subscribe

AB SMAs

Stay up to date on the latest from AB experts.

 
 

There is no assurance that a separately managed account will achieve its investment objective. Separately managed accounts are subject to market risk, the market values of securities owned will fluctuate so that your investment, when redeemed, may be worth more or less than its original cost.