Brokerage firms. A number of brokerage firms offer this service to clients, and the minimum amounts necessary to open an account, as well as the fees involved, have been declining. For example, an investor can open a separate account at Merrill Lynch for as little as $100,000. Salomon Smith Barney offers managed accounts as part of its Structured Portfolios Group.

Packaged programs. Available through financial planners and advisers, these companies offer all of the services needed in separate account management. Services include dealing with the manager, record keeping, administration, and so forth—the total package of services is sometimes referred to as a wrap. For example, Lockwood Financial Services is the largest separate account provider to independent financial advisers. Its major program offers access to 19 different money managers and provides all of the other necessary services such as administration. With this alternative, investors need to compute total costs by adding their financial adviser's fee to the management fee for the packaged program.

Web-based providers (indirect). This mechanism allows financial advisers to make their own arrangements for separate accounts with money managers. Financial advisers can then offer these services to their clients.

Web-based providers (direct). This mechanism allows investors to arrange for separately managed accounts directly using the Internet. For example, WrapManager (www.wrapmanager.com) offers a wide range of services and separate accounts for investors. A wrap account can be opened for as little as $50,000. Fees average 1.25 percent of assets. E*Trade also offers these services through its Personal Money Management (www.pmm.etrade.com). The minimum amount needed for an account here is $100,000, and the typical fee is 1.5 percent of assets.