SMA Asset Surge Ahead?

Separately managed account assets could skyrocket from the first wave of Baby Boomers, who turn 60 this year.

Also driving the growth, according to Dow Jones, is an effort by broker/dealers to increase their presence in the managed account space, and a growing popularity among investors and advisers for the customization and tax efficiency of fee-based accounts.

"It's pure dollars that are coming out of the Baby Boomers that will make the tide rise, and SMAs are positioned well to get a lot of that," said Jeffrey Strange, an analyst with the Boston-based consultant Cerulli Associates.

Jamie Waller, chief executive of the Family Wealth Report in New York agrees.

 "Boomers love to be serviced and SMAs are the highest service product out there," he said.

David Haywood, director of SMA research at Financial Research Corporation in Boston believes that the shift towards fee-based accounts will also drive SMA growth.

"Investors want to be catered to," he said. "They want their portfolio to be customized and the way to do it is through separate accounts."

Assets under management within fee-based brokerage accounts, meanwhile, were up 17% in 2005.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

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