Until now, the low-end separately managed account marketplace has seemed a bit like a Baskin-Robbins shop where you could get everything but vanilla. But if Kevin Carter has his way, the SMA industry could soon be getting a long-awaited 32nd flavor: index funds.

Carter, founder of Active Index Advisors, is betting that his plain-vanilla stock index funds with $100,000 minimums will have the same place among separate accounts as they do at the high-end of the investment world. He notes that while 40% of institutional money is in indexes, and 10% of mutual funds, only 1% of separate account dollars are in an indexed product.

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