Managed account


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Managed account

An investment portfolio one or more clients entrusted to a manager who decides how to invest it.

Managed Account

A brokerage account or any other account where the monies therein are invested by another party. For example, a person may have a discretionary account at his/her brokerage. This allows the brokerage to invest the funds in the account as it sees fit, in accordance with the account holder's investment goals and the prudent person rule. Other examples of managed accounts include annuities and IRAs. What distinguishes a managed account from other accounts is the fact that the account holder does not manage it himself/herself. See also: Separately managed account, Managed money.

managed account

An investment account that is managed by a broker or other professional. Managed accounts are designed for investors lacking the time or expertise to make their own decisions.

Managed account.

A managed account is a portfolio of stocks or bonds chosen and managed by a professional investment manager who makes the buy and sell decisions.

Each managed account has an investment objective, and each manager oversees multiple individual accounts invested in the same basic portfolio to meet the same objective.

While managed accounts resemble mutual funds in some ways, with a managed account you own individual securities rather than shares of a common fund.

You may also be able to request that the manager avoid certain investments, which you can't do with a mutual fund. And, through your broker, you might ask the manager to sell certain holdings in your account to realize capital gains or losses.

There are no phantom gains in managed accounts. Those gains can occur if a mutual fund realizes a profit from selling an investment and credits you with a capital gain even if there's no actual increase in your account value.

However, the minimum investment is usually substantially higher for a managed account -- often $100,000. Plus the annual fees, which are included in the amount you pay the financial professional who recommends the account, may be higher than the fees on a mutual fund of similar value.

References in periodicals archive ?
As Kendrick Wakeman, president of investment analytics firm FinMason, puts it, "A managed account is designed to take into account a participant's specific tolerance for risk and his financial situation to determine how much investment risk he should have in his portfolio.
A study by the Government Accountability Office (GAO) found that managed account users tend to have higher savings rates and better diversification, suggesting these could benefit the right employee.
Eighty-nine percent of investors surveyed said that a managed account simplified their investing, and cited these main benefits:
The global analytics firm discloses in its 11th annual report, "Managed Accounts 2013: Moving Toward a Single-Platform Environment," that unified managed account (UMA) assets garnered 7.
Exhilway Finance plans to sell over 25,000 managed accounts by December 2010 which will bring in margin money of over Rs 62 crore.
Typically reserved for only the largest corporate plans with assets of $400 million or more, the managed account option was far out of reach for small business owners.
Once an employee signs up for a managed account in the Georgeco plan, he or she must fill out a risk-tolerance profile that the adviser can use to develop an appropriate portfolio.
Whether known as consultant wrap programs or separately managed accounts or managed accounts, these arrangements are offered by most large brokerage firms and some financial planners.
New integrated managed account platform now in production for Fiserv clients
Summary paragraph: We look at whether the use of managed accounts paired with the oversight of an adviser results of better outcomes.
We are seeing that 50% of the participants electing to use a managed account are not providing the additional information they need for the provider to be able to customize the portfolio," says Jason Shapiro, senior investment consultant at Willis Towers Watson in New York City.