A Separately Managed Account or SMA is a type of financial investment account popular with some individual investors. SMAs are offered by financial consultants and brokerage firms, and managed by independent "money managers." A money manager is simply a business that manages stock and other securities portfolios or baskets of investments for an investor. SMAs have varying fee structures. Common characteristics of SMA programs are: they provide open investment choices; have multiple managers; and, offer a customized investment portfolio created for a client's specific needs. By customizing the portfolio, investors can limit the investment risk with various strategies, such as using stock options, according to the Wall Street Journal. 