What is Separate Account?

A separate account is an investment portfolio owned by an investor that is managed by an investment firm — typically a registered investment advisor (RIA). Separate accounts provide their owners with real-time visibility into all their holdings and transactions as they occur, as opposed to retroactively, as is the case with mutual funds. While most separate accounts are opened through a financial advisor or investment brokerage, they can also be managed through an insurance company or bank. Separate accounts are also commonly referred to as separately managed accounts (SMAs) or individually managed accounts.