By Geri Westphal
More companies are re-evaluating their investment strategies in light of increased regulations, depleting supply and continued interest-rate compression. What should be your key considerations when establishing a Separately Managed Account?Â
Separately managed accounts are increasingly viewed as a solution that can provide customization, transparency, yield enhancement, improved risk management, and diversification to a corporate liquidity portfolio. A separately managed account (SMA) is a portfolio of securities, owned by an investor (i.e., corporation) and professionally managed to a set of unique investment guidelines tailored to meet organization needs. In a separately managed account the owner has the ability to customize the strategy by identifying the appropriate maturity profile, sector, currency, and credit risk which are aligned with an organization’s investment policy and liquidity needs. Additionally, the overall strategy may include risk parameters that can lead to better diversification opportunities….
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