T. Rowe Price Separately Managed Accounts
Adaptable strategies for diverse objectives
Align distinctive portfolios with unique client goals. T. Rowe Price SMAs bring tactical flexibility to our research-driven, risk-aware active investment process.
Discover the key benefits of Separately Managed Accounts (SMAs)
Convenience
Offer a more personalized investment experience with an approach that considers client needs and preferences.
Transparency
Access portfolio holdings, transaction history, and performance to assess against client goals and objectives.
Tax flexability
Address clients’ tax-management needs with the ability to sell specified portfolio holdings.
Partnership
Deliver exceptional client experiences with access to our active management expertise and a team of service specialists.
T. Rowe Price Blue Chip Growth SMA
Seeking to capitalize on durable growth opportunities.
The U.S. Blue Chip Growth Equity SMA seeks long-term, capital appreciation by investing in the common stocks of leading large and medium-sized companies with seasoned management, strong financial fundamentals, and potential for above-average growth.
T. Rowe Price Dividend Growth SMA
A portfolio in pursuit of dividend growth and appreciation.
lnvesting in companies with a sustainable competitive advantage and we believe likely to show consistent earnings and dividend growth over time, the U.S. Dividend Growth Equity SMA seeks to provide a growing level of dividend income, long-term capital appreciation, and a reasonable level of current income.
T. Rowe Price Large Cap Equity Income SMA
A relative value approach seeking above-average dividends.
Using a conservative relative value investment approach, the U.S. Large-Cap Equity Income SMA seeks to provide an above-average dividend yield relative to the broader market. It favors high-qualily companies with strong brands, franchises, or assets that appear undervalued.
Take the next step
Explore fact sheets, performance, and more on our SMAs.
Ready to learn more?
Reach out to your T. Rowe Price Relationship Manager to learn more.
Investment Vehicle Comparison Guide
Dive into the Pros, Cons, and Unique Aspects of Canadian Pooled Funds, ETFs, and SMAs
Investing is a deeply personal journey, unique to each investor’s risk tolerance and financial goals. Once these are defined, many investors turn toprofessionally managed options like Canadian Pooled Funds, ETFs, and SMAs. Each of these investment vehicles offers distinct advantages and trade-offs,making them more or less attractive depending on specific needs. The table below highlights key considerations for each type, helping you make informeddecisions.
| Canadian Pooled Funds | ETFs | SMAs | |
|---|---|---|---|
| Professionally Managed | Pooled assets and holdings professionally managed on behalf of all shareholders | Pooled assets and holdings professionally managed on behalf of all shareholders | A professionally managed, customizable investment portfolio designed to align with a client’s distinct investment goals and personal preferences. |
| Product Fees | In addition to management fees, expenses can include shareholder servicing costs and vary by share class | Expense ratios typically have fewer fees, no share classes, and no shareholder servicing costs | Fees are based on the value of the asset plus potential platform fees |
| Trading | Traded once daily at market close (generally 4p.m. ET); short-term and/or excessive trading restrictions may apply | Continuous all-day trading on exchanges with no short-term or excessive trading restrictions | Clients have a direct beneficial ownership of the securities which are traded on behalf of each client in accordance with the stated investment strategy |
| Tax Efficiency | Portfolio turnover may cause taxable gains in order to meet daily shareholder cash redemptions capital gain distributions from manager transactions can also occur from manager activity within the portfolio | Shareholder activity usually does not affect capital gains as shares are created or redeemed through security delivery, though manager transactions can still generate capital gains | Investors can customize the timing of individual security transactions to suit their tax situation or use "tax loss harvesting strategies" |
Distributions and Reinvestment |
Distributions are usually reinvested automatically on the ex-date at net asset value (NAV), including fractional shares | Distribution reinvestment and fractional share purchases often require separate brokerage services bought at market prices (not NAV) and may not occur on the ex-date | Account owners are not impacted by activity of other investors, given their ownership of individual securities. Distributions are limited to dividend distributions that come directly from underlying securities |
Variety of Investment Strategies |
Wide variety of investment strategies with more variability and breadth in underlying holdings | Wide variety of investment strategies, but with limitations on underlying holdings, which prevent some strategies from being offered as ETFs | Platform constraints, minimum investments, and tradability can limit available strategies |
For educational purposes only, not intended as investment or tax advice. The table above is not a comprehensive list of investment vehicle features, benefits, or risks. Vehicle structures, portfoliostrategies, investment objectives, and risks will vary. Consult your financial advisor or tax professional for more information.
Frequently Asked Questions
What are Separately Managed Accounts (SMAs)?
A separately managed account (SMA) is a portfolio comprised of stocks, bonds, and other securities that are directly owned by an investor—in contrast to owning shares in a pool of securities, as with a mutual fund. This distinction affords financial professionals increased flexibility to align holdings with client needs and preferences and to have more control over tax management. Increased transparency allows for a more individualized level of portfolio management, in which financial professionals can access portfolio holdings, transaction history, and performance to assess against client goals and objectives.
How are separately managed accounts (SMAs) different from other types of investment vehicles or managed accounts?
Among other client experience and operational distinctions, ownership structure is the primary difference between SMAs and vehicles like mutual funds or ETFs—in which the end investor owns a share in the fund, but the fund directly owns all the underlying securities. By contrast, the securities in an SMA are owned by the client.
Investors and even financial professionals are sometimes unclear about the difference between a separately managed account (SMA) and a managed account—such as a managed discretionary account (MDA) or an individually managed account (IMA). The short answer is that an SMA is an investment vehicle or product, while MDAs and IMAs refer to investment services or schemes—their titles are descriptive of how an investment manager oversees the account.
What are the advantages of separately managed accounts (SMAs)?
How End Investors Benefit:
- Customization: SMAs offer clients the ability to impose reasonable restrictions to better align their portfolios to their investment objectives, risk tolerance, and preferences.*
- Tax Management: Direct ownership of the underlying securities enables robust and personalized tax management—including tax loss harvesting, capital gain deferral, and wash sale avoidance.
- Transparency: Investors have their own cost basis and can see their holdings and trading activity.
- In-Kind Funding: SMA investors may be able to fund a new portfolio in kind with existing liquid securities (subject to portfolio manager's discretion).
How Financial Professionals Benefit:
- Client Needs: SMAs allow financial professionals to accommodate high-net-worth investors, who tend to have more robust needs around tax management, customization, and transparency–and therefore benefit from the direct ownership of the underlying securities conferred by SMAs.
- Support and Expertise: Our dedicated client service team of skilled specialists offers onboarding support, account-specific requests, and more to help financial professionals provide the best experience for clients. Outsourcing portfolio management to our deeply experienced investment experts also frees up time for more client interaction and acquisition.
SMA Educational Resources
SMA Brochure
Learn about our SMA Capabilities.
SMA Comparison Guide
Share this short introductory guide with clients.
Put SMAs to work for your clients.
Contact us.
Reach out to your T. Rowe Price Relationship Manager to learn more.
 |
Transparent access to holdings and transactions |
|
Flexible tax planning |
|
Support from your Relationship Manager |
Important Information
^T. Rowe Price does not provide tax guidance or advice.
*Differences between compared investments may include sales and management fees, liquidity, volatility, tax features, holdings, and other features, which may result in differences in performance.
RISK CONSIDERATIONS:
All investments are subject to risks, including the possible loss of principal. International investments can be riskier than U.S. investments due to the adverse effects of currency exchange rates; differences in market structure and liquidity; as well as specific country, regional, and economic developments. A growth or value approach to investing could cause underperformance compared with other stock portfolios that employ different investment styles.
Growth stocks tend to be more volatile than value stocks, and their prices usually fluctuate more dramatically than the overall stock market. The intrinsic value of a stock with value characteristics may not be fully recognized by the market for a long time or a stock judged to be undervalued may actually be appropriately priced at a low level.
202507-4548929