Separately Managed Accounts (SMAs) have been part of the investment landscape for several decades. However, a recent article from InvestmentNews.com suggests it's time for financial advisors to revisit the potential these accounts offer.

Driven by technological advancements, SMAs can now be highly adaptable, allowing for the development of customized investment strategies for a wide range of investor account sizes. This enables the alignment of investment approaches with specific investor objectives, such as tax management and adherence to Environmental, Social, and Governance (ESG) principles.

Finance industry heavyweights are recognizing this potential, with companies like AssetMark, LPL Financial, and Morningstar launching or significantly enhancing their SMA platforms in the past few years. Their initiatives underscore the growing appetite for bespoke portfolio strategies that resonate with today's savvy investors.

Highlighting this trend, Aron Kershner, Managing Director at Goldman Sachs, emphasized the modern appeal of SMAs. He described them as uniquely positioned to cater to "outcome-oriented" investors, whether they have philanthropic goals, are seeking an exit from a non-performing equity manager or are managing a highly concentrated stock position.

Given advancements in technology that have increased SMA's capabilities to align with investor's needs, advisors would be well-served to take a closer look at how they can use these accounts to serve their clientele.