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PERSONALIZED
MANAGED ACCOUNTS

Tax management taken to the next level of customization

What is Personalized Managed Accounts (PMA)?

Taxes have a cost. It’s a big cost. For many investors, the cost is big enough to impact their ability to generate the after-tax wealth they desire.

We've been solving this problem for more than 30 years. Now, with PMA, we can offer a full range of tax-managed separately managed accounts (SMA) and a more customized way for us to help you and your clients maximize after-tax wealth.

Take control with personalization...

PMA empowers you to:

Improve tax efficiency and maximize after-tax wealth



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Select or exclude securities based on personal preference, objectives or constraints (e.g. environmental, social and governance (ESG) screens)
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Pair with other asset class portfolios to create a total portfolio that meets risk objectives

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Develop an optimal transition plan of current assets customized to each of your clients’ tax preferences and circumstances

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...and we'll take care of the tax management.

How do we help maximize after-tax wealth with PMA?

Russell Investments’ tax-managed SMAs use tax-managed overlays to seek to minimize taxable distributions and maximize after-tax returns. These overlays draw from our complete toolkit of tax-management strategies.

Our tax-managed overlay services provide:

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Centralized trading and implementation

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Year-round tax management including tax-loss harvesting, wash-sale minimization, tax-smart turnover and holding-period management

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Dedicated team of investment professionals focused on maximizing your after-tax outcome

The complete equity solution

Tax-Managed Core Equity SMA
Combines actively-managed and direct indexed SMAs into a single SMA to seek to minimize taxable distributions and maximize after-tax returns.

The Tax-Managed Core Equity SMA seeks to provide long-term capital growth on an after-tax basis through an allocation to U.S. and International stocks. 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, while seeking to minimize taxable distributions and maximize after-tax returns.

Minimum account size:
$750,000

Typical holdings range:
360–410

View TM 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 – Seek to minimize taxable distributions and maximize after-tax returns while closely tracking insights of active, best-in-class managers researched by Russell Investments.

Tax-Managed Large Cap SMA

The Tax-Managed Large Cap SMA seeks to provide long-term capital growth from U.S. large cap stocks on an after-tax basis. The strategy is designed to outperform the S&P 500® Index over a full market cycle, while seeking to minimize taxable distributions and maximize after-tax returns.

Minimum account size:
$100,000

Typical holdings:
80

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

Tax-Managed Small/Mid Cap SMA

The Tax-Managed Small/Mid Cap SMA seeks to provide long-term capital growth from U.S. small and mid-cap stocks on an after-tax basis. The strategy is designed to outperform the Russell 2500 Index over a full market cycle, while seeking to minimize taxable distributions and maximize after-tax returns.

Minimum account size:
$75,000

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
View TM Small/Mid Cap SMA PDF

Tax-Managed International SMA

The Tax-Managed International SMA seeks to provide long-term capital growth from non-U.S. developed markets stocks on an after-tax basis. The strategy is designed to outperform the MSCI World ex USA (Net) Index over a full market cycle, while seeking to minimize taxable distributions and maximize after-tax returns.

Minimum account size:
$100,000

Typical holdings:
80

Underlying managers*:
  • Intermede Investment Partners Limited and Intermede Global Partners Inc
  • Pzena Investment Management, LLC
  • Wellington Management Company LLP
View TM 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.

Tax-Managed DI Large Cap SMA

The Tax-Managed DI Large Cap SMA seeks to provide long-term capital growth from U.S. large cap stocks while harvesting losses, which can offset taxable distributions from other investments. The strategy is designed to track the performance of the S&P 500® Index.

Minimum account size:
$100,000

Typical holdings range:
200–300

 View TM DI Large Cap SMA PDF

Tax-Managed DI All Cap SMA

The Tax-Managed DI All Cap SMA seeks to provide long-term capital growth from U.S. stocks while harvesting losses, which can offset taxable distributions from other investments. The strategy is designed to track the performance of the Russell 3000® Index.

Minimum account size:
$250,000

Typical holdings range:
500–600


View TM DI All Cap SMA PDF

Related materials

TM Core Equity SMA One-Pager

Tax-Managed Core Equity SMA One-Pager

Download TM Core Equity SMA One-Pager (PDF)

TM Large Cap SMA One-Pager

Tax-Managed Large Cap SMA One-Pager

Download TM Large Cap SMA One-Pager (PDF)

TM Small/Mid Cap SMA One-Pager

Tax-Managed Small/Mid Cap SMA One-Pager

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

TM International SMA One-Pager

Tax-Managed International SMA One-Pager

Download TM International SMA One-Pager (PDF)

TM DI Large Cap SMA One-Pager

Tax-Managed DI Large Cap SMA One-Pager

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

TM DI All Cap SMA One-Pager

Tax-Managed DI All Cap SMA One-Pager

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

Related content

Using Russell Investments’ Separately Managed Accounts, investors can not only gain access to institutional-quality money managers at reduced account minimums, but also implement a tax-efficient approach that leverages Russell Investments’ renowned investment manager research, selection and monitoring.

Separately Managed Accounts

Since 1985, with the launch of our Tax-Exempt Bond Fund, Russell Investments' goal has been to help investors maximize their after-tax wealth. Explore our Tax-Managed Model Strategies as well as our Tax-Managed & Tax-Exempt Funds.

Tax-Managed Solutions

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.