Banks, small brokers and even independent advisers are increasingly offering separately managed accounts, hoping to put a dent in the 80% market share that large brokerages have on the industry, The Wall Street Journal reports.

Whereas SMAs traditionally have charged fees of between 1% and 3% and required minimum balances of $100,000 to $250,000, new technology that automates the investing process is permitting banks to offer SMAs for annual fees of as little as 40 basis points. In some cases, the threshold to invest is as a mere $25,000.

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.