Would you pay champagne prices for water drawn from your own well?

It may seem like an unusual question in the world of municipal bonds, but that’s how we frame the conversation when investors ask about Separately Managed Accounts. Because sometimes, the sophistication is in the packaging, not the portfolio.

Focus on the goal

In recent years, there has been a lot of discussion regarding SMAs.

Private banks and large asset managers often tout municipal bond SMAs for their personalized credit selection, tax-aware management and professional oversight.

But if your primary goal is to own high-quality individual municipal bonds tailored to your particular needs, why would you need an SMA?

It’s about the bonds, not the structure

An SMA is simply an account structure in which an advisor assembles and oversees a portfolio of individual bonds held in an investor’s name.

Traditional municipal SMAs often layer management fees, platform charges and custody costs on top of the bonds themselves, typically as an ongoing percentage of assets.

Is it worth it?

The value is in the individualized bond selection – and that’s the rub.

Who needs an institutional wrapper when you can retain control and benefit from informed insight?

No models

At our firm, we have helped generations of clients over nearly 50 years select municipal bonds aligned with their goals.

While many SMA programs rely on standardized portfolio frameworks customized to individual investors, we take a different approach. We begin by understanding the investor and constructing or enhancing the portfolio bond-by-bond.

In other words, investors receive the core benefits often associated with an SMA – customization, transparency and direct ownership – without adding unnecessary layers of cost and complexity.

It’s worth asking whether the cost makes sense when the goal of most investors is simple: Building a portfolio of high-quality municipal bonds designed to generate predictable, tax-advantaged income.

Flexibility to adjust

Another important distinction is flexibility. In many traditional SMA structures, the manager is authorized to implement portfolio changes within agreed guidelines without seeking approval for each trade.

We operate differently.

We believe investors should be involved in strategic decisions about their own investments, whether it’s about taking advantage of unique market opportunities, realizing gains or adjusting strategy based on changing conditions.

With individual bond ownership through our firm, investors maintain control while benefiting from professional guidance. In other words, they can achieve the key benefits of an SMA in a more direct manner.

The true need

The real question isn’t whether investors need someone to “manage” their bonds. It’s whether they want experienced assistance, disciplined analysis and the ability to remain directly involved in their own portfolio.

That’s how we work: The structure never stands between investors and their bonds.