The Mass Gets Class Welcome To The Club Have less than $1 million from a client? Today, that account can receive the SMA treatment

By contracting with mutual fund providers and other vendors, planners are now able to present separately managed accounts (SMA) to a wider range of investors, offering them multiple portfolio options, adjustments based on risk tolerances and tax sensitivities, and specialty fund-of-funds products. At account levels as low as $100,000, interesting commingled funds are offered. The result is a sexy new financial product line, one driven by fee-based individual planning rather than the traditional one-time sales transaction. Although the concept of the SMA is old, the buzz is new. Software and the Internet have made SMAs more manageable and accessible. Billed as a new, improved fund-type product with the promise of extra supervision and personalization, SMAs can provide a breath of fresh air for investors battered by a tumultuous stock market and for advisers grateful for new products. In addition, SMAs add another layer of management to the investment process - a cushion that could provide much-needed job security in the event of further stock market declines.