Performance
| Type | SMA | Mutual funds | + / - | ||
|---|---|---|---|---|---|
| Large cap | -34.79 | -37.9 | 3.11 | ||
| Large cap growth | -38.44 | -40.9 | 2.46 | ||
| Large cap value | -34.94 | -37.38 | 2.44 | ||
| Middle cap | -37.13 | -39.68 | 2.55 | ||
| Small cap | -34.77 | -36.88 | 2.11 | ||
| Foreign large | -42.3 | -44.06 | 1.76 | ||
| Intermediate bond | 0.73 | -5.07 | 5.8 |
The Wall Street Journal reported that separately managed accounts performed much better than mutual funds in 2008, a year when the global stock market lost US$21 trillion in value.
Morningstar, Inc. found that SMAs outperformed mutual funds in 25 of 36 stock and bond market categories for not only 2008, but also 2006 and 2007. The Wall Street Journal cited top SMA performers including Robinson Value Management Ltd’s Market Opportunity Composite Strategy, and PTI Securities & Futures LP’s Protected Index Program. The Wall Street Journal added that SMAs work best for investors with at least $1 million or $2 million to spread among various SMA strategies. The story said that, “One reason SMAs may be outperforming mutual funds is that individual SMA strategies tend to have smaller amounts of assets than popular mutual funds, allowing them to trade more nimbly.”
Pensions & Investments, a national US investment trade magazine, identified several of the top performing SMAs for 2008.
Read more about this topic: Separately Managed Account
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