Separate Account

A separate account refers to an investment portfolio that belongs to an individual investor and is overseen by an investment firm, often a registered investment advisor (RIA). What sets separate accounts apart is their ability to offer real-time visibility into all holdings and transactions, which contrasts with the retrospective reporting typically associated with mutual funds. While financial advisors or investment brokerages are the usual channels through which separate accounts are established, they can also be managed through insurance companies or banks. These investment vehicles are sometimes referred to as separately managed accounts (SMAs) or individually managed accounts, providing investors with more direct control and transparency over their assets’ management and performance.