October 13, 2023
SMAs, ETFs, and mutual funds: which one's right for you?
What's the difference between mutual funds, ETFs, and SMAs, and which one's right for you?
Separately managed accounts
Separately managed accounts (SMAs) can be an ideal solution for high-net-worth investors looking for a more tailored approach to their investments. Find out more about how our SMA capabilities can help provide a level of personalization and control to meet specialized and sophisticated investment needs.
What are SMAs?
An SMA is a portfolio of securities that is professionally managed separately from other portfolios. SMAs were originally devised to serve institutional investors requiring customizable investment strategies not available through traditional mutual funds. Their targeted nature is one of the key differences between SMAs and mutual funds or exchange-traded funds (ETFs): While an SMA is managed for the benefit of one investor, mutual funds and ETFs pool the assets of many investors. This individualized approach allows the asset manager to customize the portfolio to align with an investor's unique goals and preferences.
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Elite teams
We currently partner with 22 asset managers and have 58 proven portfolio teams.1
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Wealth of product knowledge
Our areas of expertise include private assets, SMAs, model portfolios, collective investment trusts, mutual funds, ETFs, 529 plans, 401(k) and pensions, and UCITS.
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Local insight, global scale
Our 600+ investment professionals have regional expertise to help our more than 17 million clients worldwide.2
Important disclosures
1 John Hancock Investment Management, as of 6/30/23. 2 Manulife Investment Management, as of 6/30/23.
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Flexibility
True to their name, SMAs are managed separately and aren't governed by a prospectus. This allows for greater flexibility to tailor the strategy to the investor’s specific requirements or personal preferences.
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Tax efficiency
The direct ownership structure of SMAs offers a few tax advantages for investors. One advantage is that tax-loss selling can be targeted to the individual’s unique situation to help offset capital gains tax and potentially increase after-tax returns.
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Transparency
SMA investors own the underlying portfolio holdings directly, allowing them to view their securities along with current positions and prices at any time.
SMA brochure
Gain further insight into the benefits of SMAs, including customization and tax efficiency.
Using completion funds within SMAs
Discover the benefits of using completion funds within SMAs and learn more about how we use these funds within our fixed-income SMAs.
Our SMA capabilities
Our strategies provide access to institutional-caliber portfolio management across U.S. and international equity, fixed-income, and balanced portfolio strategies—all managed by veteran teams at Manulife Investment Management.
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Learn more about Fundamental All Cap Core Strategy
Fundamental All Cap Core Strategy
Invests in companies of all market capitalizations that possess wide moats and offer the potential to compound cash flows across market cycles
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Learn more about Fundamental Large Cap Core Strategy
Fundamental Large Cap Core Strategy
Invests in large-cap companies that demonstrate a sustainable competitive advantage and are trading at compelling discounts to their long-term intrinsic value
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Learn more about Fundamental Global Franchise Strategy
Fundamental Global Franchise Strategy
Seeks long-term capital appreciation through opportunistic exposure to companies with global franchises and sustainable competitive advantage
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Learn more about U.S. Small Cap Core Strategy
U.S. Small Cap Core Strategy
Invests in profitable small-cap companies with niche business models that offer improving earnings and attractive valuations
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Learn more about Core Fixed Income Strategy
Core Fixed Income Strategy
Pursues capital preservation and high current income by investing in a mix of high-quality U.S. government, agency, and corporate bonds, as well as securitized debt, through allocations to both individual securities and underlying funds
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Learn more about Core Plus Fixed Income Strategy
Core Plus Fixed Income Strategy
Pursues high current income consistent with a prudent level of risk by investing in a mix of government and corporate bonds, as well as securitized debt, through allocations to both individual securities and underlying funds
Related viewpoints
November 6, 2023
What tax advantages do SMAs offer?
SMA investors own the underlying securities within the portfolio, a distinction that sets them apart from mutual funds and ETFs and is the key to their tax-friendly nature.
December 11, 2023
What’s a unified managed account?
UMAs have become an increasingly popular option for investors who prefer a simplified, streamlined approach to managing their investments. Learn more about what they are and the benefits they can offer to some investors.
We're here to help
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Bradley Baker, CIMA
Head of Specialized Investment Distribution
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Brad R. Begin, CRPC
SMA Platform Manager
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Paul B. Citarell, CIMA
Senior Vice President, SMA Distribution, Eastern U.S.
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Brian Goodwin, CIMA
Senior Vice President, SMA Distribution, Western and Central U.S.
Find out if SMAs are right for you
Fill out the contact form to request more information about how SMAs can offer access to institutional-caliber strategies while providing a higher degree of personalization and control to help meet unique investor needs.
Learn more about the benefits of SMAs
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