Separately Managed Accounts (SMA)

SMA delivers customized investment solutions for institutional clients, with adaptable fee arrangements designed to fit their specific requirements.

Separately Managed Accounts (SMA)

Personalized investment management services for institutional clients, tailored to their unique objectives.

A separately managed account (SMA) is exactly what it implies: a portfolio of securities that is managed independently from other portfolios. These portfolios, which include stocks, bonds, and other securities, can be customized to match an investor’s specific goals and preferences.
In a SMA, the portfolio manager crafts a customized investment portfolio, while the investor retains direct ownership of the securities. The manager actively oversees and adjusts the investments based on market conditions and the investor's goals. Fees are based on account size and customization level, and investors receive regular updates and performance reports.
Corporations seeking personalized investment strategies and direct ownership of securities may find SMAs beneficial. Bank Non-Bank Financial Institutions General & Life Insurance Provident Fund Gratuity Fund Any registered company

Typical Fee structure for EKUSH-managed SMA

  • Management Fee: A percentage of assets under management (AUM), typically ranging from 0.5% to 2% annually

  • Performance Fee (optional): An additional fee based on investment returns exceeding a specified benchmark, usually a percentage (say 10%) of the excess returns.

High water mark provision:To align Ekush’s incentives with investors’, we include a high water mark provision in our fee structure. This ensures performance fees are only charged on new gains, with fees applicable only when the account value surpasses its highest previous level.

SMA vs Mutual Funds

Mutual funds and SMAs have several differences, enabling investors to select the option that best suits their preferences

Ownership

In a SMA, investors directly own the individual securities in their account, while in a mutual fund, investors own shares of the fund, not the underlying securities.

Customization

SMAs are customized to meet the investor's specific goals and preferences, while mutual funds are standardized and adhere to a fixed investment strategy. not the underlying securities

Fee structure

Mutual fund fees are regulated and usually a percentage of assets under management. In contrast, SMA fees can be customized based on the investor's and manager's preferences.

Portfolio Composition

Mutual funds have specific constraints, such as limits on single stock exposure (no more than 10%) and single sector exposure (no more than 25%). SMAs, however, are not bound by these restrictions

IPO allocation

Mutual funds generally secure guaranteed IPO allocations, while separately managed accounts only receive this advantage if the investor is an eligible institutional investor.