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A separately managed account (SMA) is a portfolio of securities directly owned by the investor and managed according to a specific discipline or style by a professional investment manager. An SMA offers you access to investment managers who may otherwise only manage assets for institutional clients. As an account owner, you have the flexibility to customize your professionally managed portfolio by excluding certain securities or industries, or employing tax-advantaged strategies.
Separately managed accounts can play an important role in an investor’s portfolio because of the potential advantages they may offer over other types of investments. These customizable investment strategies are designed to help you pursue your specific financial goals by combining the benefits of professional money management with the flexibility, control and potential tax advantages offered by owning individual securities as opposed to interests in a pool of securities.
Like mutual funds*, for example, separately managed accounts offer professional portfolio management, but they also provide a number of features distinct from funds, such as:
Separately managed accounts are not subject to the potential negative consequences of forced sales due to shareholder redemptions that a mutual fund may face.
The Dreyfus Managed Asset ProgramSM (DMAP), a wrap-fee, investment advisory program, provides a comprehensive, disciplined strategy for helping you achieve your long-term investment goals.
You will receive professional guidance from a Dreyfus Advisor to help you develop a personalized investment plan. You, your Dreyfus Advisor and portfolio management work together toward achieving your long-term investment goals.
* Securities transactions for DMAP SMAs are processed through a separate brokerage account that DMAP clients must establish; the wrap fee excludes certain such brokerage account fees, and certain mutual fund and trading fees, if applicable.
Standish Mellon Asset Management Company, LLC (“Standish”) is an established fixed-income manager located in Boston, Massachusetts, whose history dates back to 1933. Dreyfus and Standish are affiliates and subsidiaries of The Bank of New York Mellon Corporation.
Standish’s tax-sensitive team determines security selection through a bottom-up approach, with input and leadership from portfolio management, research and trading. Their strategy focuses on adding value by identifying what Standish believes are undervalued sectors and securities through intensive fundamental and quantitative analysis. Through their research expertise and trading acumen they seek to achieve best execution on relative value opportunities rather than relying on interest-rate forecasting to deliver returns.
The standard advisory fee schedule for the Dreyfus Municipal Bond Separate Account Series is as follows:
Fayez Sarofim & Co.’s investment strategy focuses on what it believes are high-quality multinational companies that have established dominant positions in their markets. The integral part of the investment process can be broken into two vital activities, top-down vision and bottom-up stock selection, helping ensure that client portfolios possess the highest-quality companies as identified by Fayez Sarofim & Co.
Fayez Sarofim & Co. chooses stocks based on the characteristics of the individual businesses, rather than on trying to predict what they believe are fluctuations in the stock market. Worded slightly differently, Fayez Sarofim & Co. focuses on what it views as reasonably valued businesses that can generate long-duration growth in earnings and dividends.
As part of its commitment to disciplined investing, Fayez Sarofim & Co. buys stocks with the intent of holding them for long-term growth, as opposed to speculating on a stock’s short-term potential. This has historically resulted in a low average annual portfolio turnover rate.
Fayez Sarofim & Co. would rather invest in what they believe are quality businesses at good prices rather than average businesses at bargain prices. The firm looks for companies with the following criteria:
Management expertise | Global prominence | Industry leadership
Predictable earnings growth | Financial strength
The standard advisory fee schedule for Customized Investment Series Portfolios is as follows:
An actively managed portfolio of global equities
A focus on typically 40 to 70 global equity securities
Flexibility: the ability to invest anywhere around the world (max 30% in emerging markets)
Freedom (from the benchmark index: MSCI World): no rigid industry, sector or region constraints
*There can be no assurance these performance objectives can be met.
Subject to liquidity constraints.
The MSCI World Index is used as a comparative index for this portfolio. The portfolio does not aim to replicate either the composition or the performance of the comparative index.
The portfolio seeks total return (consisting of capital appreciation and income).
Global equity income.
To achieve increasing annual distributions together with long-term capital growth from investing in global securities.
The standard advisory fee schedule for Customized Investment Series Portfolios is as follows:
* Mutual funds are investment vehicles made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Features of mutual funds include a relatively low investment minimum, range of choices, ready liquidity at the then-current net asset value (NAV) and an annual operating expense ratio that directly impacts the fund’s price, which varies by fund and does not include other fees. Pursuant to new SEC regulations, during times of severe market stress, money market fund investors may be subject to fees and/or gates on their redemptions. For a more detailed comparison of mutual funds and separately managed accounts, see the comparison table above.
** Assets cannot be placed into an account by transferring securities (from a brokerage account or trust) with respect to the Dreyfus Global Equity Income ADR Portfolio.
Investors should speak with their advisor, who can provide more information about DMAP including the fee schedule and services provided thereunder, and its appropriateness for your investment portfolio.
The Dreyfus Managed Asset ProgramSM (“DMAP”), a wrap−fee, investment advisory program, provides a comprehensive, disciplined strategy for helping you achieve your long−term goals. The program provides a sophisticated, quantitative process for analyzing your investment objectives and optimizing your asset mix on an ongoing basis. You will receive professional guidance from a Dreyfus Advisor to help you develop a personalized investment plan. Investors should speak with their advisor, who can provide more information about the Dreyfus Managed Asset ProgramSM and its appropriateness for your investment portfolio.
Dreyfus Advisor Services is a division of MBSC Securities Corporation (MBSC) and a wholly owned subsidiary of The Bank of New York Mellon Corporation. MBSC is a dually registered investment adviser and broker-dealer and a member of FINRA.
Asset allocation and diversification cannot ensure a profit or protect against loss in declining markets.
BNY Mellon Investment Management is one of the world’s leading investment management organizations and one of the top U.S. wealth managers, encompassing BNY Mellon’s affiliated investment management firms, global distribution companies and wealth management organization. The Dreyfus Corporation (“Dreyfus”) and its subsidiary, MBSC Securities Corporation (“MBSC”) are registered investment advisers and BNY Mellon Investment Management firms. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. MBSC, through certain of its Dreyfus-branded divisions, sponsors or provides investment advisory or administrative services to various wrap programs.
Fayez Sarofim and Co. is a registered investment adviser and independent from, and not affiliated with, Dreyfus, MBSC or any other BNY Mellon entity.
“Newton” and/or the “Newton Investment Management” brand refers to the following group of affiliated companies: Newton Investment Management Limited, Newton Investment Management (North America) Limited (NIMNA Ltd) and Newton Investment Management (North America) LLC (NIMNA LLC). NIMNA LLC personnel are supervised persons of NIMNA Ltd and NIMNA LLC does not provide investment advice, all of which is conducted by NIMNA Ltd. NIMNA LLC and NIMNA Ltd are the only Newton companies to offer services in the U.S. Newton is a wholly owned subsidiary of The Bank of New York Mellon Corporation.
Equities are subject to market, market sector, market liquidity, issuer and investment style risks, to varying degrees.
Small and midsized company stocks tend to be more volatile and less liquid than larger company stocks as these companies are less established and have more volatile earnings histories.
Bonds are subject to interest-rate, credit, liquidity, call and market risks, to varying degrees. Generally, all other factors being equal, bond prices are inversely related to interest-rate changes and rate increases can produce price declines.
American Depositary Receipts (ADRs) are certificates evidencing ownership of shares of a foreign-based issuer held in trust by a bank or similar financial institution. ADRs are alternatives to the purchase of the underlying securities in their original markets and currencies. ADRs are subject to many of the same risks as the foreign securities to which they relate.
Municipal income may be subject to state and local taxes for out-of-state residents. Some income may be subject to the federal alternative minimum tax for certain investors. Capital gains, if any, are taxable.
Dreyfus Advisory Services is a division of MBSC Securities Corporation (MBSC) and a wholly owned subsidiary of The Bank of New York Mellon Corporation. MBSC is dually registered investment advser and broker-dealer and a member of FINRA.
This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular investment, strategy, investment manager or account arrangement. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Please consult a legal, tax or investment advisor in order to determine whether an investment product or service is appropriate for a particular situation. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. The Dreyfus Corporation and MBSC Securities Corporation are affiliates of BNY Mellon. ©2018 MBSC Securities Corporation, distributor, 225 Liberty Street, 19th Fl., New York, NY 10281.