A separately managed account (SMA) is an investment portfolio of stocks, bonds, cash, and other individual securities, managed by a professional money manager.

When you invest in an SMA, you own individual securities (unlike a mutual fund investor, who owns shares of the entire fund). Although SMAs offer set investment styles or strategies, investors have the freedom and flexibility to tailor their portfolios to address their personal preferences and goals. Although portfolio managers may oversee dozens, or even hundreds, of separately managed accounts, your account is "separate" and distinct from all others.