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Target 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.
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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.
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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.