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Individual Investors ♦ What is a Professionally Managed Portfolio?

What Is A Professionally Managed Portfolio?

A customized investment portfolio primarily consisting of stocks, and /or bonds, and cash that employs the services of a professional investment manager. The manager will buy and sell securities in your portfolio based upon their stated investment discipline. This type of portfolio is also commonly referred to as a "separately managed account."

The portfolio is offered by an advisor who can provided a wide range of advisory services, including:

  • Assisting you in determining your risk tolerance and required investment returns,
  • Providing asset allocation advice,
  • Selecting the appropriate investment vehicle and investment managers,
  • Ongoing monitoring of your portfolio's performance.
  • The investment manager buys and sells securities for the portfolio on behalf of the client.
  • The asset based fee covers commissions and the services of the investment manager and advisor. The fee is based on the total value of the portfolio rather than on an individual transaction basis.

Why Invest In A Professionally Managed Portfolio

  • Provides you with access to professional money management.
  • Active investment management tailored to address your specific investment goals, risk tolerance and time horizon.
  • You own the individual securities in the investment portfolio, which allows significant flexibility in controlling tax exposure.
  • You can be fully invested since you are not required to hold cash.
Tax sensitive portfolio management including:
  • Capability to match capital gains and losses by selling select positions at a loss in order to generate tax write-offs at year end,
  • You own the security and establish your own cost basis at purchase, which prevents purchasing a tax liability.
  • Ongoing portfolio monitoring and adjustments as market conditions change.
  • Regular performance reporting.

Your advisor can provide additional information and advice on individually managed accounts (minimum account size $50,000) and whether this type of account is appropriate for you.

Morgan Stanley Smith Barney, its affiliates, and its employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matters(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

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Please contact your advisor for more information about available products, services and research.

For more information, please contact your Financial Advisor.

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