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 Limited | Client'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 | CEO |
| Chief Operating Officer | Trustees | |
| Chief Financial Officer | CFO | |
| Chief Investment Officer | Treasurers | |
| Head of SMA | CEO | |
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 Appetite | Manadate Structure | Characteristics |
|---|---|---|
| Low | Fixed Income Mandate |
|
| Low | Capital protected Mandate |
|
| Medium / High | Balanced Mandate |
|
| High | Equity Mandate |
|