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Investment solutions
Offer tax-efficient, personalized portfolios with custom separately managed accounts (SMAs)
Empower clients to incorporate their investing preferences and seek the benefits of active tax management with custom SMAs.
Download a product listingTarget client needs more precisely with custom SMAs
Looking to give your clients a more personalized, tax-efficient portfolio? Custom SMAs—a sophisticated investment capability once only available to the ultra wealthy—can help you:
Enhance the tax efficiency of your clients' portfolios
Help your clients keep more of what they earn by taking advantage of the broad array of tax management capabilities provided by custom SMAs.
Meet clients' unique investment preferences
With 82% of investors interested in personalized products and 62% willing to pay more for customization,1 offering custom SMAs can help you better serve your clients—and your practice.
Scale your practice and elevate your value
Custom SMAs let you create highly personalized portfolios more efficiently, allowing you more time for the higher-value activities today's investors want from their advisors.
White Paper
The Unique Value of Custom SMAs in Wealth Management: Direct Indexing and Beyond
Understand the impact of this next great innovation in advisory solutions.
Learn MoreHow can custom SMAs help you meet client objectives?
Discover how these highly personalized portfolios can help you target clients' individual needs.
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Manage clients' core equity exposure with tax efficiency
Unlike passively managed mutual funds and ETFs that are commonly used to achieve core equity exposure, custom SMAs allow for client-specific tax management. Through custom SMAs, tax-loss harvesting can be done opportunistically throughout the year, and any losses harvested can help offset capital gains occurring elsewhere in your clients' portfolios.
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Diversify away from concentrated stocks, and other portfolio transitions
Clients with concentrated positions who want to reduce idiosyncratic—or specific—risk may not want to liquidate some of these positions to do so, due to potential tax consequences. Custom SMAs allow you to gradually sell down concentrated positions and help offset the resulting capital gains through tax-loss harvesting.
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Incorporate clients' unique investment preferences into their portfolios
Custom SMAs offer a high degree of personalization and the potential market exposure you and your clients are looking for. By owning the underlying securities, clients can easily tailor their investment choices—perhaps by excluding a certain security or avoiding specific types of businesses or companies.
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Capture capital losses for a future taxable event
With some forethought, losses harvested throughout the year in a custom SMA can be rolled forward to help offset a large taxable event on the horizon, such as an investment property sale. As the industry shifts more toward financial planning, using this type of thoughtful approach can help you better prepare clients for expected events.
Ebook
Custom Separately Managed Accounts: Efficient Solutions to Client Challenges
Find out how custom SMAs can help capture tax alpha and achieve other key client goals.
View now- Diversification does not ensure a profit or guarantee against a loss.
- Accounts that are tax-managed invest generally in equity securities and use investing techniques that seek to enhance after-tax returns, including, without limitation, harvesting tax losses and the potential deferral of capital gains. The effectiveness of such techniques cannot be guaranteed.
- It is important to understand that the value of tax-loss harvesting for any particular client can only be determined by fully examining a client's investment and tax decisions for the life of the account and the client, which our methodology does not attempt to do. Clients and potential clients should speak with their tax advisors for more information about how a tax-loss harvesting approach could provide value under their specific circumstances.
Want to know more?
Download a product listingUsing Our Custom SMAs
Get started creating portfolios tailored to clients' preferences and tax management goals by focusing on three essential areas.
Fidelity's Custom SMAs
Offer a more tailored experience with Fidelity's custom SMAs—backed by our personalization capabilities, investment expertise, and client-focused service model.
- 1. Enhancing Investors' Trust: 2022 CFA Institute Investor Trust Study.
- Past performance is no guarantee of future results. An investment may be risky and may not be suitable for a client's goals, objectives, and risk tolerance. An investment's value may be volatile, and any investment involves the risk that you may lose money.
- The value of a strategy's investments will vary in response to many factors, including adverse issuer, political, regulatory, market, or economic developments. The value of an individual security or a particular type of security can be more volatile than and perform differently from the market as a whole. Nearly all accounts are subject to volatility in non-U.S. markets, either through direct exposure or indirect effects on U.S. markets from events abroad, including fluctuations in foreign currency exchange rates and, in the case of less developed markets, currency illiquidity. Events such as natural disasters, pandemics, epidemics, and social unrest in one country, region, or financial market may adversely impact issuers in a different country, region, or financial market. Performance could be negatively impacted if the value of a portfolio holding were harmed by such political or economic conditions or events. Moreover, such negative political and economic conditions and events could disrupt the processes necessary for investment operations.
- Accounts that are tax-managed ("Taxable Accounts") invest generally in equity securities and are managed using investing techniques that seek to enhance after-tax returns, including, without limitation, harvesting tax losses and the potential deferral of capital gains. FIWA seeks to provide, consistent with the client-mandated investment guidelines, improved returns over the designated benchmark on an after-tax basis, including by considering the potential effects of capital gains when making investment decisions. The Accounts are actively managed for federal income taxes but are not managed in consideration of state or local taxes; foreign taxes; federal tax rules applicable to entities; or estate, gift, or generation-skipping transfer taxes. FIWA cannot guarantee the effectiveness of these investing techniques.
- Strategies that focus on sustainable investing may have fewer opportunities to implement available tax management techniques because of a more limited investment universe and therefore, investing in sustainable strategies could potentially result in significant tax consequences. Investing based on sustainability factors may cause an account to forgo certain investment opportunities available to accounts that do not use such criteria. Because of the subjective nature of sustainable investing, there can be no guarantee that criteria used by Fidelity or a third party, as applicable, in its sustainable strategies will reflect the beliefs or values of any particular account. Additionally, Fidelity relies upon information and data obtained through third-party reporting, which, if incomplete or inaccurate, could result in Fidelity imprecisely evaluating an issuer's practices with respect to material sustainability factors.
- Fidelity Brokerage Services LLC ("FBS"), an affiliate of FIWA, is a registered broker-dealer. FBS distributes FIWA's Accounts as a paid solicitor.
- Fidelity Institutional Wealth Adviser LLC ("FIWA") is a registered investment adviser and an indirect, wholly owned subsidiary of FMR LLC. FIWA provides customized separately managed account portfolios that consider tax effects for taxable clients. FIWA has retained the services of its affiliate, Fidelity Management & Research Company LLC ("FMR"), to manage these accounts, subject to FIWA's supervision and oversight.
- Fidelity Investments® provides investment products through Fidelity Distributors Company LLC; clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC; and institutional advisory services through Fidelity Institutional Wealth Adviser LLC.