Separate Account

A separate account is a private investment account that is maintained by an investment management firm for institutional or individual investors. This type of account is distinct from a mutual fund or a commingled fund where assets from multiple investors are pooled. In a separate account, the investor owns the underlying securities directly and has the ability to tailor the portfolio to specific investment goals, tax considerations, and risk tolerance.

This customisation is one of the key advantages of separate accounts, as it allows for a personalised investment strategy that can be adjusted over time to reflect changes in the investor's financial situation or market conditions.

Separate accounts are commonly used by high-net-worth individuals, endowments, and pension funds that require a more hands-on approach to their investment strategy.