While customization remains one of the key selling points for increasingly popular separately managed accounts, the usage of this feature remains low due to technology issues, complacency of certain providers and level of investor need.
One of the biggest draws about separate accounts is their ability to tailor the treatment of investment results to fit the needs of individual high-net-worth clients. Factors such as the investor's tax, retirement and risk management situations can all be taken into account. Customization can also allow investors to allow for social restrictions, such as avoiding "sin" stocks in their portfolio. Investors generally choose customization in order to create liquidity, hedge or diversify positions, or to transfer wealth. Risk, return and taxes can all be tailored to the individual's preferences.