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 security ownership. This means that unlike in a unit trust, dividends, distributions and franking credits are confined to the client’s account, and applied to the client’s income tax statement. The client, therefore, gets many of the benefits of a personally managed investment account, along with all the benefits of a professionally managed investment. Separately managed accounts have been around for some time, and have grown in popularity in the last 5 years.