SEATTLE--(BUSINESS WIRE)--Russell Investments has expanded its suite of Personalized Managed Accounts (PMA) with the launch of eight fixed income and multi-asset separately managed accounts (SMA) to serve diverse investment needs. The firm’s PMA suite now features four portfolios of fixed income securities packaged as Municipal ladders and Treasury ladders with staggered investment time horizons. In addition, the suite includes four multi-asset options of equity and fixed income securities either packaged in direct indexing or a mix of active and direct indexing allocations.
The expanded PMA suite is already available on some custodial platforms such as the Fidelity Separate Account Network (SAN) and other platforms such as SMArtX Advisory Solutions, while also partially available on Envestnet SMA. The suite provides financial advisors who leverage these platforms with greater opportunity to customize their clients’ portfolios to individual preferences that reflect unique values and investment needs.
Personalization opportunities in Russell Investments’ PMA suite include a wide range of considerations such as tax management and tax-efficient transitions, factor tilts, faith-based preferences, security and theme-based restrictions, charitable giving, as well as coordination across portfolios.
“Our expanded suite of PMA solutions is designed to help advisors advance their clients’ wealth-building strategy based on our full range of capabilities in portfolio construction, risk management, trading and execution, as well as tax-advantaged income management,” said Kevin Knowles, Senior Director, Personalized Solutions at Russell Investments. “Advisors are empowered to leverage our sophisticated investment approach, backed up by five decades of experience providing investment solutions to global institutional investors."
Russell Investments’ new PMA products:
- Personalized Municipal Ladder 1-5 Year SMA
- Personalized Municipal Ladder 1-10 Year SMA
- Personalized Treasury Ladder 1-5 Year SMA
- Personalized Treasury Ladder 1-10 Year SMA
- Personalized 60/40 DI (direct indexing) Core Allocation SMA
- Personalized 70/30 DI Core Allocation SMA
- Personalized 60/40 Core Allocation SMA
- Personalized 70/30 Core Allocation SMA
These PMA solutions feature a dedicated team of portfolio managers, quantitative research analysts and service teams, centralized trading and implementation, as well as personalized year-round tax management capabilities, including tax-loss harvesting, wash sale minimization, tax-smart turnover and holding-period management.
The newly available fixed income solutions are managed by Brian Pringle, Director, Customized Portfolio Solutions - Fixed Income. Each of these four options has an investment minimum of $250,000. The two newly available multi-asset DI core solutions are managed by Nick Zylkowski, Managing Director, Co-Head of Customized Portfolio Solutions, while the two new core-allocation solutions are managed by Zylkowski and Jordan McCall, Director, Senior Portfolio Manager - Equity. These four options have an investment minimum of $750,000 or $850,000.
In addition to the newly launched PMA options, Russell Investments’ PMA suite also features:
- Two personalized core equity SMA solutions: Core Equity and Direct Indexed Core Equity
- Three personalized active SMA strategies: Large Cap, Small/Mid Cap, and International
- Five personalized Direct Indexed SMA strategies: Direct Indexed Large Cap, Direct Indexed Large Cap Growth, Direct Indexed Large Cap Value, Direct Indexed All Cap, and Direct Indexed International
Knowles said he expects the firm’s PMA suite, which has quadrupled in assets within the past year, to continue its robust growth trajectory as investors’ expectations shift toward greater personalization amid uncertain market conditions. “Investors are looking for complete solutions and more robust customization, and we’re happy to deliver a full package of timely solutions to exceed their expectations,” he added.
About Russell Investments
Russell Investments is a leading global investment solutions partner providing a wide range of investment capabilities to institutional investors, financial intermediaries, and individual investors around the world. Since 1936, Russell Investments has been building a legacy of continuous innovation to deliver exceptional value to clients, working every day to improve people’s financial security. The firm has $302.7 billion in assets under management (as of 3/31/2024) for clients in 30 countries. Headquartered in Seattle, Washington, Russell Investments has offices in 16 cities around the world, including New York, London, Toronto, Tokyo, and Mumbai.
Personalized Managed Accounts (“PMA”) is a program of Russell Investment Management, LLC (“RIM”) and offers customized portfolio management services.
Fixed income securities involve interest rate risk, credit risk, inflation risk, reinvestment risk, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they have been valued.
Fidelity Investments is an independent company, unaffiliated with Russell Investments. There is no form of legal partnership, agency affiliation, or similar relationship between Russell Investments and Fidelity Investments, nor is such a relationship created or implied by the information herein. Fidelity Investments has not been involved with the preparation of the content supplied by Russell Investments and does not guarantee, or assume any responsibility for its content. Fidelity Investments is a registered service mark of FMR LLC.
Russell Investment Management, LLC (”RIM”) and Envestnet are separate and unaffiliated firms. This material should not be construed as a recommendation or endorsement of any particular product, service, individual or firm.
Municipal securities are subject to credit/default risk and interest rate risk and may be more sensitive to adverse economic, business, political, environmental, or other developments if it invests a substantial portion of its assets in the bonds of similar projects or in particular types of municipal securities. Income from municipal securities is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for some investors may be subject to the federal Alternative Minimum Tax (AMT).
Each Personalized Separately Managed Account is a product of Russell Investment Management, LLC (”RIM”) and offered through RIM’s Personalized Managed Accounts (“PMA”) program. It represents a model portfolio provided by RIM. For active SMAs, it reflects a composite of 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 investor’s investment objectives. RIM offers 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, category and theme-based restrictions, 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.
