An advantage of an SMA is to allocate specifically designed exposure based on the total portfolio. The assets can be designed to complement the existing portfolio. Diversification is critical to the health of a portfolio.
SMAs can also serve as a natural hedge against liquidity concerns of funds. A segregated account allow the investor to fully understand their allocation.
VIKASA Capital can design SMAs specific to needs of institutions and accredited investors.
In the wake of the financial crisis, transparency has become even more important to clients. With SMAs, advisers and clients see their actual holdings. They also receive full details on fees. This level of transparency lets high-quality asset managers prove their worth.