When clients who have over $5 million to invest prefer to own individual stocks rather than mutual funds, Summit recommends separate account managers.   Separate account managers pick individual stocks and bonds for a separate client account rather than pool the client’s investment in a mutual fund.

The advantages of separate accounts can be significant when large amounts, usually over $25 million, are invested.   However, at lesser amounts, the differences between mutual fund and separate account investing are mostly a personal preference.