Q: What is a Separately Managed Account (SMA) and how do they work?

A separately managed account (SMA) is a portfolio of individual securities managed on the client’s behalf by a professional asset management firm, such as Nucleus Wealth. Separately managed accounts offer the investor the benefits of direct share ownership. Dividends, distributions and franking credits are confined to the client’s account, whilst the client still has the hands off nature of a professionally managed investment solution. Separately managed accounts have been around for some time, and have grown in popularity in the last 5 years.