Separately Managed Accounts and Unified Managed Accounts

A Separately Managed Account (SMA) is an individual account managed by an independent investment management firm. SMAs offer a flexible investment structure that provides a customized investment portfolio constructed to the investors objectives and risk tolerance, while accounting for any desired portfolio restrictions.

Mutual Funds vs. SMAs

A fundamental difference between a mutual fund and an SMA is that mutual fund investors own shares of a company that owns the underlying investments, in an SMA structure the SMA investor owns the assets directly. This adds a level of flexibility, transparency and control that is sought-after by institutions and sophisticated individual investors.

SMA Pension Investing

SMAs were first constructed to accommodate accounts and clients whose objectives did not coincide with the constrictions presented by mutual fund investments. The transparency and customization of SMA account management is particularly suited to middle market pension investments.

The Unified Managed Account (UMA) is a continuation on the basic SMA in that it links multiple investment managers to a single investor account. Each manager has control over their designated portion of the assets. In this manner an investor can choose best in class mangers for the various assets classes in which they invest.

UMA Pension Investing

UMA accounts are especially suited for pension investments as they combine multiple professionally managed investment products into a single account with consolidated services. UMAs offer fiduciaries multiple benefits including consolidated billing and tax reporting, global account rebalancing and single source performance reporting. By consolidating administrative and paperwork functions, UMAs offer plan sponsors operational efficiencies while maintaining the advantages of institutional investing.

This is for informational purposes only and is not an offer, solicitation or recommendation that any particular investor should purchase or sell any particular security or pursue a particular investment strategy. Fees and expenses with mutual funds, SMA and UMA accounts may vary. Prospectuses and other information should be reviewed carefully before making investment decisions. Before making investments in SMA or UMA accounts please read Geneos’ Form ADV or Schedule H for important information.