TMG Client Profile:
Separately Managed Accounts Industry (SMA)
SMA Sponsor
A broker-dealer, wirehouse, or financial services firm which selects SMA managers to participate in its SMA "sponsor" program. Act as the administrative and reporting "front-end" to the SMA managers, channeling client assets to managers based on client needs and wants.
SMA Manager
An investment management enterprise managing portfolios for both in-house sponsor programs and external sponsor programs. Typically managing a high volume of portfolios across 1 or more investment styles.
SMA Service Providers
Typically a financial services firm or technology firm with a specific competency in SMA technology, process, or operations.
- SMA Overlay Managers
- Turnkey Asset Management Programs (TAMPs)
- Mutual Fund SMA Managers
- SMA Technology Providers (Portfolio accounting, trading, performance measurement, billing, reporting)
Current trends across the SMA landscape:
- Revenue decline from market downturn
- Rethinking of business strategy
- Operational cost sensitivities
- Employee knowledge and retention issues
- Technology complexity
- Outsourcing as a viable alternative