Another unique advantage of Separately Managed Accounts is found on their fixed income or bond allocations. By building individual bond portfolios with direct ownership, you possess much greater control over your fixed income holdings. This is especially vital in a rising interest rate environment, when bond values can fluctuate. Owning bonds directly means you can hold them to maturity and simply continue to clip the coupons (or interest), knowing that you are able to collect your full face value back from the bond at maturity. This is not typically the same level of control you would have with a bond ETF or fund where managers are sometimes forced to sell bonds at a loss due to large investor withdrawals that can occur when interest rates rise and they experience negative returns.