New solutions empower advisors and their clients to add custom overlays and exclusion services
Russell Investments has expanded its suite of Personalized Managed Accounts (PMA) with the launch of two additional direct-indexed options that deliver customizable exposure to international and core equity. The firm’s PMA suite now features eight separately managed accounts (SMA) that blend actively managed equity SMAs with direct-indexed SMAs. These solutions leverage technology to help investors achieve growth and optimal after-tax outcomes.
“Our expanding suite of PMA solutions draws from the firm’s complete toolkit of active and direct-indexed strategies, along with 40-plus years of active-investing expertise and over 20 years of tax management experience,” said Kevin Knowles, Senior Director, Personalized Solutions at Russell Investments. “The result gives wealth managers the ability to deliver customized portfolios that can be tailored to meet the unique preferences of each client and at an attractive price.”
PMAs offer a wide range of custom overlay and exclusion services including:
- Maximizing after-tax wealth
- Developing an optimal tax-efficient transition plan
- Aligning specific ESG preferences with investments
- Diversifying concentrated stock positions
- Limiting purchases in stocks or industries that the client already owns or is biased against
Russell Investments’ PMA solution features a dedicated team of portfolio managers, quantitative research analysts and service teams, centralized trading and implementation; as well as automated year-round tax management capabilities, including tax-loss harvesting, wash sale minimization, tax-smart turnover and holding-period management. Ultimately, these SMAs aim to help clients meet their desired outcomes by minimizing the impact of taxes and transaction costs while maintaining tracking error to a target portfolio.
With the addition of two direct-indexed options, the firm’s PMA suite now features:
- Two personalized core equity SMA solutions: Core Equity and Direct Indexed Core Equity (new)
- Three personalized active SMA strategies: Large Cap, Small/Mid Cap, and International
- Three personalized passive SMA strategies: Direct Indexed Large Cap, Direct Indexed All Cap, and Direct Indexed International (new)
The newly added Personalized Direct Indexed Core Equity SMA seeks to provide long-term capital growth through an allocation to stocks in U.S. and international developed markets. It is designed to track the performance of a blended allocation to the Russell 3000® Index and the MSCI World ex USA (Net) Index. The newly added Personalized Direct Indexed International SMA seeks to provide long-term capital growth from stocks in non-U.S. developed markets. It is designed to track the performance of the MSCI World ex-USA (Net) Index.
Both strategies are designed to deliver personalized investment outcomes by incorporating client-directed customization, such as tax management, ESG considerations, and custom screens.
“Investors increasingly want more control and customization of their portfolios,” said Knowles. “With over five decades of experience providing institutional investment solutions, we’re happy to deliver these complementary SMA solutions to help our partners and advisors meet their clients’ desired outcomes.”
About Russell Investments
Russell Investments is a leading global investment solutions firm providing a wide range of investment capabilities to institutional investors, financial intermediaries, and individual investors around the world. Building on an 86-year legacy of continuous innovation to deliver exceptional value to clients, Russell Investments works every day to improve the financial security of its clients. The firm has $326.3 billion in assets under management (as of 3/31/2021) for clients in 32 countries. Headquartered in Seattle, Washington, Russell Investments has offices in 19 cities around the world, including in New York, London, Toronto, Tokyo, and Shanghai.
Personalized Managed Accounts (“PMA”) is a program of Russell Investment Management, LLC (“RIM”) and offers customized portfolio management services.
Each Personalized Separately Managed Account is a product of Russell Investment Management, LLC (”RIM”) and is offered through PMA. It represents a composite of model portfolios provided by RIM, in which each composite reflects model portfolios of RIM and third-party investment advisors selected by RIM. When the model is implemented, PMA is a separately managed account program of individually owned securities that can be tailored to meet an investor’s investment objectives. RIM partners with external third-party money managers to offer diversified, single or multi-asset managed accounts that can be customized to the investor’s investment objectives, circumstances and preferences, such as (but not limited to), market exposure, risk management, tax management, environmental, social and governance considerations, and return objectives. Excluding any allocations to pooled investment vehicles, if any, each investor’s account is managed separately from other investor accounts, allowing for a personalized experience to deliver unique investment outcomes.
Diversification and strategic asset allocation do not assure a profit or guarantee against loss in declining markets. Please remember that all investments carry some level of risk. Investment in one or more separately managed accounts is not a complete investment program and involves risk; principal loss is possible. The principal value of the account is not guaranteed at any time. There are no assurances that the objectives in this material will be met. The decision to use PMA in investors’ portfolios and related investment advice are provided through financial advisors and other financial intermediaries that are independent of RIM and its affiliates.
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.
Please note the products and services listed within this document may or may not be available at your firm. Check with your firm for availability.
Steve Claiborne, 206-505-1858, email@example.com