The term “AMA” is used primarily in the U.S. brokerage industry for such agreements in which a portfolio management resource account is managed within the company, or more often by an external fund management company (Investment Advisory) with a director. In this context, an ADM can be considered an investment vehicle similar to an investment fund in which the client pays a fee to a money manager for his services that manage the client`s investment. The important difference is that an investment fund investor holds shares in a company that holds other interests, while an ADM investor directly owns the assets invested in his own name. SMAS must comply with a number of requirements set out in Rule 3a-4 of the Investment Corporations Act 1940 to ensure that they are not considered unregistered investment firms.  A similar type of account or agreement is referred to as a “separately managed account,” “separate account” or “private account” when opened directly with non-brokerage firms. In this context, the term “separate account” should not be confused with a separate account of an insurance company. The managed retail accounts sector was estimated at $1.70 trillion in the third quarter of 2009. [Citation required] Manageable accounts are generally offered by global investment banks and specialized investment firms. Minimums for managed accounts and operating costs for managed account programs have continued to decline as technology contributes to efficiency and scale. Increasingly, manager account products are also interested in “people to the masses.” Managed accounts were launched as separately managed accounts and have since become several strategic accounts (ASMs) and unified management accounts (UMAs) that quickly established themselves. There is broad consensus that managed accounts offer additional benefits in terms of transparency, liquidity and control.  Financial scandals and market declines in 2008 served as a catalyst for hedge fund investors to move towards ADMs.
 As such, the ADM is evolving to accommodate the expected demand of investors in such structures. The single managed account is an example of improving the structure of the ADM, as it links multiple managers and strategies to a single investor-controlled account. The configuration of the managed single account allows any mix of managers selected by the investor to be more effective in terms of capital and operation than the same mix would have been structured within an ADM or fund structure. SMAS was designed in the 1970s to house accounts and clients that were required to meet certain objectives that did not meet an investment fund`s bottlenecks. It is the freedom of choice of professional managers, portfolio adjustment, objective investment advice for a fixed commission, diversification (or concentration, if the client decides), tax efficiency and general flexibility that have made MAS popular with informed investors. The Wall Street Journal reported that separately managed accounts did much better than investment funds in 2008, when the global stock market lost $21 trillion.