Separately managed accounts continue to gain share as more investors look for an alternative to pooled vehicles like mutual funds. With an SMA, an investor owns the underlying securities directly rather than shares of a fund, which opens the door to real customization, from excluding specific companies to targeting tax exempt income. 

That direct ownership also makes tax loss harvesting far more practical than it typically is inside a pooled fund. Once reserved for institutions and the very wealthy due to high account minimums, SMAs have become far more accessible as technology has lowered the cost of running individualized portfolios at scale. 

Assets in the category have grown substantially over the past decade, and most industry forecasts expect that growth to continue as more advisors lean on customization.

Finsum: Separately managed accounts are steadily taking share from mutual funds and off the shelf models alike.