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Custom SMAs
Get started with Fidelity's Custom SMAs and provide personalization at scale
Create portfolios tailored to clients' preferences and tax management goals—without placing high demands on your time.
Download a product listingCreating personalized portfolios just got easier with our custom SMAs
Our holistic end-to-end process allows you to focus your time on your clients and their investment objectives, preferences, and tax management goals. With streamlined digital experiences that are integrated with Wealthscape, you can give us your client's investment choices in just a few clicks. We take it from there and will build and manage their unique portfolios.
Three steps to help you put Fidelity Institutional Custom SMAs into practice
Creating a custom mandate with your clients gives them an investment solution that's truly tailored to their preferences. Consider identifying their needs in three essential areas:
1. Determine market exposure
What are your clients' investment goals? Work with them to identify what they're looking for their portfolio to achieve. For example:
- Do they need a specific market exposure or global coverage?
- Is there a target risk exposure for the equity portfolio that global blends could help with?
- Is your client interested in sustainable investing?
2. Clarify tax goals
Identify if your clients have any specific tax considerations that could impact how you build their portfolio, such as:
- Are they tax sensitive and looking to align potential tax benefits with their chosen market exposure?
- Does their risk sensitivity need to align with their chosen market exposure and smaller potential tax benefits?
- Is there a capital gains budget to consider in transitioning assets to a new portfolio?
3. Prioritize their preferences
Talk with your clients to see if they have any specific ideas, interests, or preferences they'd like reflected in their portfolios. Consider questions like:
- Do they want a portfolio that expresses their faith or other values?
- Is there a type of business or product that they would like to avoid?
- Could excluding a specific company or industry help address a concentrated position in their portfolio?
Get insights along the way using our digital self-service custom SMA platform1
Easily input client mandates
It's simple to enter your client's investment criteria and consider the potential implications of making certain exclusions.
Evaluate your client customization details
Review and understand client account composition and risk metrics once the mandate is entered.
Inform your decisions with transition analysis
Consider the tax implications of various transition options for your client's portfolio.
Screenshots are for illustrative purposes only.
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 listingFidelity'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.
Custom SMA Benefits
Empower clients to incorporate their investing preferences and seek the benefits of active tax management with custom SMAs.
- 1. Availability and experience will vary by platform.
- 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.