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A Separately Managed Account (SMA) is a portfolio of securities directly owned by the investor and managed according to a specific discipline and/or style by a professional investment manager.

Types of Separately Managed Accounts

Discretionary SMA

The investor delegates full control of the portfolio to the investment manager who devises appropriate strategy and implements it. It is investment manager’s duty to keep investor up to date regarding his portfolio’s allocation and performance.

Non-Discretionary SMA

In this type of SMA, the investment manager only suggests the investment idea. The choice as well as the timing of the investment decision rest solely with the investor. However, the implementation of the approved strategy may be implemented by the investment manager.

Benefits of Separately Managed Accounts

  • Tailored portfolio according to the risk and return profile.
  • Transparent.
  • Access to the professional investment managers.
Separately Managed Accounts (SMA)
AL Habib Asset Management LimitedClient's Investment Committee
Chief Executive Officer

Define overall Investment strategy

Investment decisions are based on review and outlook of economy & market conditions

Portfolio to be synced with Clients Risk and Return appetite

Chief Operating OfficerTrustees
Chief Financial OfficerCFO
Chief Investment OfficerTreasurers
Head of SMACEO

Key Elements in SMA Structure

At AL Habib Asset Management Limited, we customize your portfolios and mandate to achieve the investment objective according to the risk/return appetite.

Risk AppetiteManadate StructureCharacteristics
LowFixed Income Mandate
  • Investment in high quality, rated Shariah compliant/Conventional debt instruments (Corporate/Sovereign Ijara Sukuks,, Corporate Sukuks, Corporate Bond, T-Bills, PIBs)
  • Benchmark usually 6-months T-Bill rate or KIBOR linked
  • Discretion not necessary
LowCapital protected Mandate
  • 2-3 years maturity; asset allocation (70-80% shariah compliant/conventional fixed income & 20-30% shariah compliant/conventional equity exposure)
  • Composite benchmark based on asset allocation
  • No protection on early withdrawal
  • Full discretion advised
Medium / HighBalanced Mandate
  • Asset allocation based on internal / regulatory guidelines (exposure limits for listed securities)
  • Investment in all Shariah Complaint / Conventional debt, money market and equity instruments
  • Benchmark relative to industry / market returns (usually reflective of portfolio allocation)
  • Discretion is advised for equity portion
HighEquity Mandate
  • Allowance of 100% investment in listed securities
  • Sector & company exposure limits assigned in consultation with client
  • Objective is to outperform pre-determined benchmark
  • Greater outperformance witnessed under discretionary