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PERSONALIZED
MANAGED ACCOUNTS

The next level of customization in Separately Managed Accounts

What is Personalized Managed Accounts (PMA)?

Every investor’s needs and preferences are unique. And as wealth grows, so do expectations and complexity—like tax management and environmental, social and governance (ESG) considerations. Yet the level of personalization and customization required to meet each client’s distinct goals can quickly send a practice into disarray.

That’s where Personalized Managed Accounts comes in. PMA 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)
  • Personalized transition management

The benefits of PMA

PMA gives you and your clients access to an investing approach that leverages Russell Investments’ extensive investment manager research, selection and monitoring process. This process is our trademark, forming the cornerstone of our advice to global institutional investors for more than 50 years.

But it doesn’t stop there. Now, through PMA, investors have access to the next level of a customized separate account solution that is built entirely around their unique needs. PMA lets you personalize the portfolio at the individual account and securities levels.

Take control and personalize your separately managed accounts with PMA.

PMA empowers you to:

Access a robust toolkit of tax-managed overlay services designed to maximize after-tax wealth
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Choose among a variety of environmental, social and governance (ESG) exclusion and overlay options
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Develop an optimal transition plan of current assets customized to your tax circumstances and preferences
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Diversify a concentrated stock position


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Select or exclude individual securities based on personal preferences, objectives or constraints
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Pair with other asset class portfolios to create a total portfolio that meets your risk objectives
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Achieve all of this while leveraging the Russell Investments partnership to implement Personalized Managed Accounts seamlessly and with little effort on your part.

Use our investor-friendly brochure to help explain the benefits of Personalized Managed Accounts to your clients.

Download brochure

Read our blog post for a quick refresher on the pros and cons of separately managed accounts (SMAs), plus a potential solution for today’s investors: Personalized Managed Accounts.

Read tax management and SMA blog post

Read our blog post to learn more about the next level of customization in separately managed accounts: Personalized Managed Accounts.

Read PMA blog post

Explore the SMAs at the foundation of Personalized Managed Accounts

First, choose your chassis. Depending on your goals and preferences, one, or a combination of several, of our Separately Managed Accounts will form the foundation for your personalized portfolio. Then select one or multiple features to customize your portfolio to best reflect your goals, circumstances and preferences.

The core equity solution

Personalized Core Equity SMA
Broadly diversified global equity portfolio designed to offer a high level of personalization at an attractive cost

The Personalized Core Equity SMA seeks to provide long-term capital growth through an allocation to U.S. and International stocks while also delivering customized investment outcomes by incorporating client-directed customization, e.g., tax management, Environmental, Social and Governance (ESG) considerations, and custom screens. The strategy is designed to outperform a blended index of the Russell 3000® Index and the MSCI World ex USA (Net) Index over a full market cycle.

Minimum account size:
$500,000

Typical holdings range:
350–550

Personalized Core Equity SMA PDF

The percentages represent the target allocation as of 12/31/2020 and may change in the future.

Options to meet your needs

ACTIVE STRATEGIES

Three actively-managed equity SMAs – Portfolios focused on different parts of the equity market, managed by best-in-class managers researched by Russell Investments.

Personalized Large Cap SMA

The Personalized Large Cap SMA seeks to provide long-term capital growth from U.S. large cap stocks while delivering customized investment outcomes by incorporating client-directed customization, e.g., tax management, Environmental, Social and Governance (ESG) considerations, and custom screens. The strategy is designed to outperform the S&P 500® Index over a full market cycle.

Minimum account size:
$80,000

Typical holdings:
80

Underlying managers*:
  • Brandywine Global Investment Management, LLC
  • HS Management Partners, LLC
  • Jackson Square Partners, LLC
  • Jacobs Levy Equity Management, Inc
Personalized Large Cap SMA PDF

Personalized Small/Mid Cap SMA

The Personalized Small/Mid Cap SMA seeks to provide long–term capital growth from U.S. small and mid–cap stocks while delivering customized investment outcomes by incorporating client–directed customization, e.g., tax management, Environmental, Social and Governance (ESG) considerations, and custom screens. The strategy is designed to outperform the Russell 2500 Index over a full market cycle.

Minimum account size:
$60,000

Typical holdings:
80

Underlying managers*:
  • Ancora Advisors, LLC
  • Cardinal Capital Management, LLC
  • Copeland Capital Management, LLC
  • Polen Capital Management LLC
  • Snow Capital Management L.P.
  • Summit Creek Advisors, LLC
Personalized Small/Mid Cap SMA PDF

Personalized International SMA

The Personalized International SMA seeks to provide long-term capital growth from non–U.S. developed markets stocks while delivering customized investment outcomes by incorporating client-directed customization, e.g., tax management, Environmental, Social and Governance (ESG) considerations, and custom screens. The strategy is designed to outperform the MSCI World ex USA (Net) Index over a full market cycle.

Minimum account size:
$60,000

Typical holdings:
80

Underlying managers*:
  • Intermede Investment Partners Limited and Intermede Global Partners Inc
  • Pzena Investment Management, LLC
  • Wellington Management Company LLP
Personalized International SMA PDF

PASSIVE STRATEGIES

Two direct indexed (DI) SMAs – Provide index-like market exposure through direct stock holdings & seek to harvest losses which can offset taxable distributions from other investments.

Personalized DI Large Cap SMA

The Personalized DI Large Cap SMA seeks to provide long–term capital growth from U.S. large cap stocks while delivering personalized investment outcomes by incorporating client–directed customization, e.g., tax management, Environmental, Social and Governance (ESG) considerations, and custom screens. The strategy is designed to track the performance of the S&P 500® Index.

Minimum account size:
$100,000

Typical holdings range:
200–350

 Personalized DI Large Cap SMA PDF

Personalized DI All Cap SMA

The Personalized DI All Cap SMA seeks to provide long–term capital growth from U.S. stocks while delivering personalized investment outcomes by incorporating client–directed customization, e.g., tax management, Environmental, Social and Governance (ESG) considerations, and custom screens. The strategy is designed to track the performance of the Russell 3000® Index.

Minimum account size:
$250,000

Typical holdings range:
300–600


Personalized DI All Cap SMA PDF

PMA gives you flexibility and choice

Add custom overlay and exclusion services: These can be added to your Personalized Separately Managed Accounts to provide a truly active approach offering flexibility and a higher level of customization.

Steer your portfolio in the right direction.
Build around your needs.

Custom-design your portfolio:

Person

You have beliefs, either faith-based or ESG preferences, that may lean you toward or away from specific types of companies. With Personalized Managed Accounts, you can restrict purchases to those stocks, industries and categories in your customized portfolio.

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You own restricted stock or equity options. Personalized Managed Accounts allows you to limit additional ownership in the company or industry.

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You have a concentrated stock position with a low-cost basis and want to avoid triggering significant capital gains if you sold it. With Personalized Managed Accounts you can build around this position or transition out of it over time while minimizing the tax.

Here’s how we can help you maximize your after-tax wealth.

Tax-managed overlay services provide:

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Centralized

  • Trading
  • Implementation
Calendar

Year-around tax management

  • Tax-loss harvesting
  • Wash sale minimization
  • Tax smart turnover
  • Holding period
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Dedicated team

  • Investment professionals focused on maximizing your after-tax outcome

Transition accounts easily and efficiently

Our transition management is customized to your client's personal preferences and makes it easy for you to transition your client's current assets to PMA in a tax-efficient manner. Through our custom transition analysis report, we can develop an optimal transition plan customized to each of your clients’ tax preferences and circumstances.

Our Consultative Review process entails:

1

Provide your client’s existing holding information to the Russell Investments' PMA Service Team.

  • Client’s name
  • Holding information per lot (ticker, date acquired, number of shares, and cost basis per share)
  • Target PMA model strategy (optional)
  • Short-term capital gains tax rate
  • Long-term capital gains tax rate
  • ESG constraints (if any)
  • Stock restrictions (if any)

2

Your Russell Investments team will develop a custom transition proposal with you to take into account all your client’s individual tax preferences and circumstances.

Depending on the target SMA, transition options can include a time-period (immediate, 3- or 5-years), tax, or capital gains budget approach.


3

Choose the optimal transition for your client and complete the PMA Account Onboarding steps.

Let us answer any additional questions you have.

Contact your dedicated regional sales team to learn more about Personalized Managed Accounts.

Related materials

Personalized Core Equity SMA One-Pager

Personalized Core Equity SMA One-Pager

Download Personalized Core Equity SMA One-Pager (PDF)

Personalized Large Cap SMA One-Pager

Personalized Large Cap SMA One-Pager

Download Personalized Large Cap SMA One-Pager (PDF)

Personalized Small/Mid Cap SMA One-Pager

Personalized Small/Mid Cap SMA One-Pager

Download Personalized Small/Mid Cap SMA One-Pager (PDF)

Personalized International SMA One-Pager

Personalized International SMA One-Pager

Download Personalized International SMA One-Pager (PDF)

Personalized DI Large Cap SMA One-Pager

Personalized DI Large Cap SMA One-Pager

Download Personalized DI Large Cap SMA One-Pager (PDF)

Personalized DI All Cap SMA One-Pager

Personalized DI All Cap SMA One-Pager

Download Personalized DI All Cap SMA One-Pager (PDF)

Personalized DI All Cap SMA One-Pager

White paper: SMA design in the presence of taxes

Download SMA design in the presence of taxes White Paper (PDF)

Research Paper: Mitigating taxes while transitioning to a new strategy

Mitigating taxes while transitioning to a new strategy

Download Research Paper (PDF)

Notice:

* Managers listed above are current as of 10/7/2020. 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.