Separately managed accounts

Customize your portfolio with institutional money managers

What is a separately managed account (SMA)?

A SMA is a portfolio of securities managed by an investment firm on an investor’s behalf, offering customization and direct ownership of securities.

Why use separately managed accounts?

Separately managed accounts provide individual investors access to institutional-quality money managers at reduced account minimums. Within this structure, the investor directly owns the securities in the portfolio, and can impose restrictions against the purchase of specific securities as a means of customizing the portfolio for their own requirements. This flexibility allows the investor the potential benefits of direct security ownership combined with professional management.

Direct security ownership may include:

  • Ability to transfer securities in-kind
  • Individual security reporting
  • Tax efficiency (loss harvesting, wash sale management)
  • Customization/restrictions (work around concentrated positions or personal preferences)

The benefits of Russell Investments' Separately Managed Accounts

Using Russell Investments’ Separately Managed Accounts, investors can implement a tax-efficient approach that leverages Russell Investments’ renowned investment manager research, selection and monitoring. This process is our trademark, forming the cornerstone of our advice to global institutional investors for more than 50 years.

An uncommon level of access

Separately managed accounts incorporate in-depth manager research to select some of the world's best institutional investment managers. We package complementary managers intentionally chosen to provide broad coverage of specific asset classes.

Objective manager oversight

Russell Investments' objective approach to evaluating and selecting money managers is designed to be clear and uncompromising at all times. We hire and replace managers as we think appropriate with the goal of creating optimal manager combinations in pursuit of a particular investment's objective.

Featuring SMAs PMA provides personalized tax management

Russell Investments’ Personalized Managed Accounts is a distinctive solution tailored to investors’ unique and specific needs, featuring separately managed accounts, custom overlay services (e.g., tax management and ESG considerations), and personalized transition management.

Personalized Managed Accounts
People hiking on a mountain

Product Overview

Large Cap Managed Account

The Large Cap Managed Account seeks to provide long-term capital growth in U.S. large cap equities and is designed to outperform the S&P 500® Index over a full market cycle.

Minimum account size:

$80,000

Inception date:

5/1/2007

Typical holdings range:

80

Underlying managers*:

  • Brandywine Global Investment Management, LLC
  • J.P. Morgan Investment Management, LLC
  • Jacobs Levy Equity Management, Inc.
  • William Blair Investment Management, LLC
Large Cap Managed Account Overview

Small/Mid Cap Managed Account

The Small/Mid Cap Managed Account seeks to provide long-term capital growth in U.S. small/mid cap equities and is designed to outperform the Russell 2500™ Index over a full market cycle.

Minimum account size:

$60,000

Inception date:

5/1/2007

Typical holdings range:

80

Underlying managers*:

  • Ancora Advisors, LLC
  • Copeland Capital Management, LLC
  • DePrince, Race & Zollo, Inc.
  • Lord, Abbett & Co. LLC
  • Penn Capital Management, LLC
  • Polen Capital Management LLC
  • Royce & Associates, LP
  • Summit Creek Advisors, LLC
Small/Mid Cap Managed Account Overview

International Managed Account

The International Managed Account seeks to provide long-term capital growth in non-U.S. equity and is designed to outperform the MSCI World ex USA (Net) Index over a full market cycle.

Minimum account size:

$60,000

Inception date:

9/1/2019

Typical holdings range:

80

Underlying managers*:

  • Intermede Investment Partners Limited and Intermede Global Partners Inc
  • Pzena Investment Management, LLC
  • Wellington Management Company LLP
International Managed Account Overview

IMPORTANT INFORMATION

*Managers listed are current as of 2/11/2025. Russell Investment Management, LLC (“RIM”) selects the money managers and optimizes the portfolio utilizing quantitative and/or rules-based processes. RIM’s portfolio construction process seeks to achieve the desired level of concentration, appropriate risk management, and exposure to strategic and tactical sources of excess return intended to meet the separately managed accounts investment objective over a market cycle. These money managers are unaffiliated with RIM and have non-discretionary asset management assignments pursuant to which they provide a model portfolio to RIM representing their investment recommendations. RIM may change portfolio asset allocation at any time, including not allocating portfolio assets to one or more money manager strategies or securities within a money manager’s model portfolio.

There are no assurances that the investment goals and objectives stated will be met.

Tax-efficiency is not a stated objective of the Large Cap Managed Account, Small/Mid Cap Managed Account, or International Managed Account.

Separately Managed Accounts are a product of Russell Investment Management, LLC (RIM). Each Separately Managed Account 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. Because each client’s investment in a Separately Managed Account is implemented and overseen by a third-party investment advisor serving as a “centralized portfolio manager,” RIM provides no investment management services with respect to the Separately Managed Accounts. Investment in one or more Separately Managed Accounts is not a complete investment program.

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 remember that all investments carry some level of risk, including the potential loss of principal invested.

The investor's returns in a Russell Investment Management, LLC (RIM) Separate Account will be reduced by the investment advisory fees and by any other management expenses the investor's account(s) may incur. See your investment advisor for a Disclosure Brochure with specific information about advisory fees that you would incur.

Diversification and multi-asset solutions do not assure a profit and do not protect against loss in declining markets.

Transition Management Services offered by Russell Investments Implementation Services, LLC., member FINRA / SIPC.

The S&P 500® Index is an index, with dividends reinvested, of 500 issues representative of leading companies in the U.S. large cap securities market.

The Russell 2500™ Index measures the performance of the 2,500 smallest companies in the Russell 3000® Index, representative of the U.S. small to medium small capitalization securities market.  Small capitalization (small cap) investments generally involve stocks of companies with a market capitalization based on the Russell 2000® Index. Investments in small cap, micro cap, and companies with capitalization smaller than the Russell 2000® Index are subject to the risks of common stocks, including the risks of investing in securities of large and medium capitalization companies. Investments in smaller capitalization companies may involve greater risks as, generally, the smaller the company size, the greater these risks. In addition, micro capitalization companies and companies with capitalization smaller than the Russell 2000® Index may be newly formed with more limited track records and less publicly available information.

The trademarks, service marks and copyrights related to the Russell indexes and other materials as noted are the property of their respective owners.

The MSCI World ex USA Index captures large and mid cap representation across 22 of 23 Developed Markets countries—excluding the United States. With 1,008 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

Indexes are unmanaged and cannot be invested in directly.

Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the "FTSE RUSSELL" brand.

The information, analyses and opinions set forth herein are intended to serve as general information only and should not be relied upon by any individual or entity as advice or recommendations specific to that individual entity. Anyone using this material should consult with their own attorney, accountant, financial or tax adviser or consultants on whom they rely for investment advice specific to their own circumstances.

Products and services described on this website are intended for United States residents only. Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained on this website should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Persons outside the United States may find more information about products and services available within their jurisdictions by going to Russell Investments' Worldwide site.

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Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates Management, L.P., with a significant minority stake held by funds managed by Reverence Capital Partners, L.P. Certain of Russell Investments' employees and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes.

Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the "FTSE RUSSELL" brand.

© Russell Investments Group, LLC. 1995-2025. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments. It is delivered on an "as is" basis without warranty.

First used April 2020. Updated March 2025. RIM-02076