Most owners of separately managed accounts have a solid understanding of the product and expect to increase their commitment to it during the next year, according to research by the Citigroup Asset Management unit of Citigroup Inc.
The survey, which was released Monday, also found that investors are most interested in separately managed accounts as a tool to facilitate financial planning and communication but that few financial advisers use them this way.
Separately managed accounts are professionally managed portfolios of individual securities that can be tailored to meet specific investment objectives.
More than 90% of separately managed account owners are satisfied, the survey said, and nearly half said they are very satisfied. About 70% said they are realizing all the benefits that were described to them when they first invested.
More than half the account owners said that they are likely to invest more in managed accounts in the next year.
The survey examined the views and uses of separately managed accounts; it questioned 505 individual investors and 400 financial advisers by telephone.
