Much has been said about the growth of the separately managed account industry - both in terms of the growth this market segment has experienced in the past few years and also in terms of the anticipated growth that many analysts predict. Once distribution channels become optimized to handle the expected growth of SMA money, it is widely predicted that SMAs will replace mutual funds as the investment product of choice for individual investors.

At the same time, the separate account industry is facing a situation whose root causes can be found in the way the industry is structured and, ultimately, the lack of advances in the portfolio software used to manage separate accounts. The issue at hand is the ability of money managers to become compliant with the performance presentation standards (PPS) of the Association for Investment Management & Research (AIMR) of Charlottesville, Va.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.