DESCRIPTION OF CUSTOMIZABLE INPUTS
Advisor's name – Enter your first and last name.
Advisor's firm name – Enter your firm’s name
Advisor's email address – Enter your email address
Advisor's postal address – Enter your street address including unit or suite number, if applicable.
City, State ZIP – Enter your city, state and zip code.
Client's name – Enter the name of your client who this onboarding form is for.
Advisor's CRD number – Enter your CRD number. To find your CRD number, go to adviserinfo.sec.gov.
Estimated cash investment – This is the estimated cash amount that will be invested into the account.
Selected PMA strategy – This is the selected PMA strategy that will be used in the account.
Account number – Enter your account number.
Do you have any Russell Investments PMA accounts that you would like linked for wash sale purposes? A wash sale is a transaction in which an investor sells or trades a security at a loss and purchases "a substantially similar one" 30 days before or 30 days after the sale. If you have additional PMA accounts you would like linked, select Yes. If not, select No.
List all Russell Investments PMA account numbers here – If you have additional PMA accounts you want to have linked for wash sale purposes, please provide those PMA account numbers.
What is the trading fee arrangement for this account? Select asset-based or transaction-based.
If per transaction, enter the cost per each – Enter the trading fee cost per transaction.
What tax lot accounting method is used? Select Highest Cost Lot/HIFO, Tax Lot Optimizer (Schwab only), or Tax Sensitive (Fidelity only).
Does this account sweep dividends? A sweep account is a bank or brokerage account that automatically transfers amounts that exceed a certain level into a higher interest-earning investment option at the close of each business day.
Account tax status – Account will either be taxable or non-taxable.
Federal long term capital gains rate – Enter the appropriate federal long term capital gains tax rate for your clients' expected taxable income.
Federal short term capital gains rate – Enter the appropriate federal short term capital gains tax rate for your clients’ expected taxable income.
State tax rate – If your clients reside in a state with state income tax, enter the appropriate state tax rate for your clients’ expected taxable income.
Annual tax budget – This is the annual tax budget selected for ongoing management of the account. It will be derived from the federal and state rates you provided. The budget will automatically be set to 0 each year. If you would like to update or renew your budget, you will be given the opportunity to do so at the beginning of each year and can always submit a PMA maintenance form at any point throughout the year.
Annual short term capital gains budget – This is the annual short term capital gain budget selected for ongoing management of the account. The budget will automatically be set to 0 each year. If you would like to update or renew your budget, you will be given the opportunity to do so at the beginning of each year and can always submit a PMA maintenance form at any point throughout the year.
Annual long term capital gains budget – This is the annual long term capital gain budget selected for ongoing management of the account. The budget will automatically be set to 0 each year. If you would like to update or renew your budget, you will be given the opportunity to do so at the beginning of each year and can always submit a PMA maintenance form at any point throughout the year.
Factor overlay – these will emphasize a specific investment style
Dividend: available for the Personalized DI Large Cap SMA (S&P 500 Index benchmark) and Personalized DI All Cap SMA (Russell 3000 Index benchmark) strategies only.
Seeks to provide dividend yield on average above benchmark in a tax efficient manner, harvesting losses when opportunity exists. This overlay screens for companies that pay dividends, as non-dividend paying stocks are excluded. Additionally, this overlay screens for sustainability of dividends by removing the bottom quartile of companies based on their distance to default. Typical holding range for DI Large Cap is between 100 – 150 stocks and for DI All Cap is between 180 – 240 stocks when overlay is applied. To maintain neutral sector exposure relative to the respective benchmark, and to aid with individual security weights & concentration, two controls are applied: 1) minimum number of stocks per sector where available and 2) maximum overweight allowances relative to benchmark weight. To ensure accounts hold stocks that meet this criteria, semi-annual rebalancing may be implemented.
"Do not buy" security restrictions – These are the securities that will not be bought.
Category/theme "Do not hold" restrictions – These are the category and/or theme-based screens that will not be held. (Definitions below are as of 12/31/2023)
Abortion & Contraceptives: Sustainalytics, company operates facilities, manufactures applicable products, no revenue threshold
Adult Entertainment: Sustainalytics, company is involved in production or distribution, revenues exceed 10%
Alcohol: GICS subindustry
Animal Testing: Sustainalytics, company is involved in conducting testing on animals, for pharmaceutical products or/and medical devices and/or biotechnology, as well as non-pharmaceutical products. This includes both cosmetics as well as chemicals such as pesticides or food additives, no revenue threshold
Cannabis: Sustainalytics, company is involved in development, cultivation, distribution for either medical or recreational purposes, no revenue threshold
Catholic Values*: Abortion & contraceptives: company operates facilities, manufactures applicable products, no revenue threshold; Human embryonic stem cell & fetal tissue: involved in use of stem cells or fetal cell lines for vaccine development, no revenue threshold; Adult entertainment: Sustainalytics, company is involved in production or distribution, revenues exceed 10%; Gambling & tobacco: GICS subindustries; Cannabis: Sustainalytics, development, cultivation or distribution for recreational
purposes, revenues exceed 10%; Controversial weapons: Sustainalytics, company involved in core weapon system or components considered critical, no revenue threshold; Firearms: Sustainalytics, manufactures and sells assault weapons, small arms, or key components of small arms, revenues exceed 10%; Violations of the UN Global Compact** on Human Rights and the Environment: Sustainalytics, companies flagged as non-compliant; Biodiversity: Sustainalytics, companies involved in severe
controversies related to a firm’s use or management of emissions, effluents, water, land use and biodiversity
Controversial Weapons: Sustainalytics, company involved in core weapon system or components considered critical, no revenue threshold
Environmental Impact: Thermal coal: Sustainalytics, company extracts thermal coal or generates electricity from coal, revenues exceed 10%; Biodiversity: Sustainalytics, companies involved in severe controversies related to a firm’s use or management of emissions, effluents, water, land use and biodiversity; Palm Oil: Sustainalytics, companies involved in the production and/or distribution of palm oil; Oil sands, arctic oil and gas exploration: Sustainalytics, companies that extract oil sands or are
involved in oil and gas exploration in Arctic regions, no revenue threshold; Oil & gas: Sustainalytics, company is involved in oil and gas exploration, production, refining, transportation and/or storage, revenues exceed 10%; Violations of the UN Global Compact** on Human Rights and the Environment: Sustainalytics, companies flagged as non-compliant
Firearms: Sustainalytics, manufactures and sells firearms (assault weapons, small arms, key components of small arms) to civilian and/or law enforcement customers, revenues exceed 10%
Fur and Specialty Leather: Sustainalytics, company derives revenue from fur or specialty leather. This includes companies that derive more than 0% of their revenue from manufacturing fur or specialty leather products and companies that derive 10% or more of their revenue from the distribution or retail sale of products made from fur or specialty leather.
Gambling: GICS subindustry
Human Rights/Social: Private prisons: Sustainalytics, companies that own or operate private prisons; Firearms: Sustainalytics, manufactures and sells assault weapons, small arms, or key components of small arms, revenues exceed 10%; Controversial weapons: Sustainalytics, company involved in core weapon system or components considered critical, no revenue threshold; Riot control: Sustainalytics, company manufactures protection equipment and/or riot control weapons, no revenue threshold; Violations of the UN Global Compact* on Human Rights and the Environment: Sustainalytics, companies flagged as non-compliant 26/28 General disclosures
Military Contracting: Sustainalytics, company manufactures military weapon systems, tailor-made products or services for military defense, revenue exceed 10%
Oil & Gas: Sustainalytics, company is involved in oil and gas exploration, production, refining, transportation and/or storage, revenues exceed 10%
Riot Control: Sustainalytics, company manufactures protection equipment and/or riot control weapons, no revenue threshold
Shariah aligned: Investment is not allowed in companies deriving more than 5% of their total revenue (cumulatively) from any of the following activities (“prohibited activities”):
Alcohol: distillers, vintners and producers of alcoholic beverages, including producers of beer and malt liquors, owners and operators of bars and pubs; Tobacco: cigarettes and other tobacco products manufacturers and retailers; Pork related products: companies involved in the manufacture and retail of pork products; Conventional Financial Services: commercial banks involved in retail banking, corporate lending, investment banking; companies involved in mortgage and mortgage related services; providers of financial services, including insurance, capital markets and specialized finance; credit agencies; stock exchanges; specialty boutiques; consumer finance services, including personal credit, credit cards, lease financing, travel-related money services and pawn shops; financial institutions primarily engaged in investment management, related custody and securities fee-based services; companies operating mutual funds, closed-end funds and unit investment trusts; financial institutions primarily engaged in investment banking and brokerage services, including equity and debt underwriting, mergers and acquisitions; securities lending and advisory services institutions; and insurance and reinsurance brokerage firms, including companies providing property, casualty, life disability, indemnity or supplemental health insurance; Defense / Weapons: manufacturers of military aerospace and defense equipment, parts or products, including defense electronics and space equipment; Gambling / Casino: owners and operators of casinos and gaming facilities, including companies providing lottery, online games or betting services; Music: producers and distributors of music, owners and operators of radio broadcasting systems; Cinema: companies engaged in the production, distribution and screening of movies and television shows, owners and operators of television broadcasting systems and providers of cable or satellite television services; Adult Entertainment: owners and operators of adult entertainment products and activities; Advertising Services in television, newspapers, and billboards; Gold & Silver Hedging: Traders of gold & silver as cash or on deferred basis; Not Slaughtering according to Islamic or Monotheistic principles: Food producers or processing companies not following the Islamic or Monotheistic guidelines in the slaughtering of animal.
Shariah investment principles do not allow investment in companies with financial ratios violating the following criteria:
Total conventional debt over average daily market cap for the prior 24 months exceeds 33%. If the average market cap of the company falls below the total asset value, total assets is then used in calculating the percentage above; Sum of a company's cash and short-term interest-bearing securities over average daily market cap for the prior 24 months exceeds 33%. If the average market cap of the company falls below the total asset value, total assets is then used in calculating the percentage above; The total non-permissible income generated from conventional interest income and any non-compliant activities should not exceed 5% of the total income generated by the company; No investment in fixed income preferred shares is allowed; No investment in trust units is allowed
The revenue that Islamic Financial Institutions derive from Financial Services will not be considered revenue from a prohibited activity. Islamic Financial Institutions will not be subject to the business or financial Screening criteria above
Russell Investments will not be tracking, purifying or distributing dividends to charity.
Thermal Coal: Sustainalytics, company extracts thermal coal or generates electricity from coal, revenues exceed 10%
Tobacco: GICS subindustry
* Screening preferences of individual investors will vary. This methodology is based on the U.S. Conference of Catholic Bishops' (USCCB) Socially Responsible Investment Guidelines. Individual components of this grouping are made available for individuals to tailor as desired as described on the previous page.
** The UN Global Compact is a principle-based framework for businesses, stating 10 principles in the areas of human rights, labor, the environment and anti-corruption
GICS restrictions – These are the sectors and/or industries that will be excluded from your account based on the MSCI Global Industry Classification Standard®.
IMPORTANT RISK DISCLOSURES
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. There are no assurances that the objectives stated in this material will be met.
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.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
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. 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).
GENERAL DISCLOSURES
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 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/or theme-based screens, 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.
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.
Copyright © Russell Investments Group, LLC. 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.
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.
First used: February 2025
RIM-03695