On-Chain SMA Administration

Segregated Managed Accounts (SMAs) are rapidly gaining popularity among high-net-worth individuals, family offices, and institutional investors. Unlike pooled funds, an SMA is designed for a single investor, giving them direct ownership and custody of their assets while granting the asset manager discretionary authority to invest.

For investors, SMAs offer transparency and customization. For managers, however, they often create operational friction: manual NAV calculations, high-water mark (HWM) tracking, and fee reporting can quickly become a burden.

That’s where Fume’s on-chain SMA administration platform steps in.

Why Traditional SMA Administration Falls Short

Managing SMAs the traditional way often requires:

• Spreadsheets for NAV calculations
• Manual tracking of high-water marks and performance fees
• Costly reconciliations between custodians, brokers, and administrators
• Delays in reporting, undermining client trust

These inefficiencies make it difficult for managers to scale operations or build a reliable, verifiable track record.

Key Benefits with Fume's SMA Administration

With Fume, SMAs are managed just like investment funds—but with all administration automated on-chain.

✅ Instant NAV Automation – NAVs can be calculated in seconds, periodically or on-demand.
✅ Accurate Performance Fee Management – High-water marks are tracked automatically, ensuring fees are calculated fairly.
✅ Transparent Fee Accounting – Pending and paid fees are logged on-chain, reducing disputes and simplifying payouts.
✅ Verifiable On-Chain Track Record – The NAV is stored on-chain, creating track record for showcasing to attract new clients.
✅ Any Underlying Asset – Whether your SMA client holds crypto, tokenized assets, balances on a centralized exchange, or traditional investments like stocks and commodities, Fume integrates seamlessly.

In short, Fume delivers the efficiency of SMA management with the flexibility to support any asset class.

How It Works

Running an SMA on Fume is simple and compliant:

1. Create an On-Chain Fund – Set management and performance fee terms.
2. Register the Investor – Add a subscription for the SMA client.
3. Confirm the Deposit – Acknowledge the investor’s deposit while they retain custody of assets.
4. Start Trading & NAV Reporting – Track performance and calculate NAVs seamlessly.
5. Settle Fees Transparently – Investors send only the fee liquidity when required, directly into the protocol.

👉 Ready to modernize your SMA operations?
Discover how Fume can streamline your SMA administration—from crypto SMAs to traditional asset accounts. Book a demo today and see how on-chain SMA management can transform your practice.