Managed account - Definition

It is a fee-based Investment account for high Net Worth individuals taken care of by an investment professional for their clients. When an investor has a managed account, he or she gives an investment manager the authority to purchase and sell securities for the account, without the need to request permission. Essentially, the manager is authorized to make all Transaction decisions for the investor's account in accordance with specific goals and objectives.

The appeal of managed accounts is the access to professional money managers, a high degree of customization and greater tax efficiencies in a fee-based product. Managed account minimums and the cost to operate managed account programs have steadily dropped as technology helps with efficiency and scale. There are also multiple-discipline managed accounts that are run by a group of managers, each with a different specialty, and provide a greater level of investment diversity.

Terms near "Managed account"

Managed care

Managed currency fund

Managed derivatives fund

Managed earnings

Managed economy

Managed Float

Managed forex account

Managed fund

Manual Trading

Manufacturing Production