What is Personalized Managed Accounts (PMA)?
Personalized Managed Accounts (PMA) are separately managed accounts with a complementary range of services.
Every investor’s needs and preferences are unique. And as wealth grows, so do expectations and complexity—like tax management considerations and category & theme-based restrictions. 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 considerations and category & theme-based restrictions)
- Personalized transition management
The potential 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.
PMA empowers you to have:
Advanced Tax Management
Based on our 35+ years of innovation in tax-managed investing, a toolkit of trading and investment strategies are aimed at reducing tax impact.
Enhanced Portfolio Personalization
A high level of customization and flexibility is available to meet your clients' unique and complex investment needs.
Tax-efficient Transition Management
Our custom analysis helps you assess the tax implications of portfolio repositioning and establish an objective transition plan by utilizing a timeline or tax-budget approach.
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.
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.
Explore the SMAs at the foundation of Personalized Managed Accounts
Depending on your goals and preferences, select one or a combination of our Separately Managed Accounts to form the foundation for your personalized portfolio. Then customize your portfolio with the features that best reflect your goals, circumstances and preferences.
EQUITY
Personalized DI All Cap SMA Overview | Fact Sheet
Personalized DI Large Cap SMA Overview | Fact Sheet
Personalized DI Large Cap Growth SMA Overview | Fact Sheet
Personalized DI Large Cap Value SMA Overview | Fact Sheet
Personalized DI International SMA Overview | Fact Sheet
Personalized Large Cap SMA Overview | Fact Sheet
Personalized Small/Mid Cap SMA Overview | Fact Sheet
Personalized International SMA Overview | Fact Sheet
Personalized Core Equity SMA Overview | Fact Sheet
Personalized DI Core Equity SMA Overview | Fact Sheet
FIXED INCOME
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
MULTI-ASSET
Personalized 60/40 DI Core Allocation SMA
Personalized 70/30 DI Core Allocation SMA
Personalized 60/40 Core Allocation SMA
Personalized 70/30 Core Allocation SMA
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.
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:
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
- Category & theme-based restrictions (if any)
- Stock restrictions (if any)
- Tax budget (if any)
- Short-term capital gains budget (if any)
- Long-term capital gains budget (if any)
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.
A Tax-Budget transition approach is available for: both Personalized Core Equity SMA solutions, and all Personalized DI SMAs. The Timeline approach is available for all Personalized SMA solutions.
Choose the optimal transition for your client and complete the PMA Account Onboarding steps.
Additional related materials
PMA eKit
PMA Brochure
PMA Direct Indexing eKit
PMA Direct Indexing Solutions
PMA Personalization Options Brochure
Transition Analysis Sample Report
Separately Managed Accounts
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.
Frequently Asked Questions for Personalized Managed Accounts (PMA)
Separately Managed Account (SMA)
What is a Separately Managed Account (SMA)?
What are the benefits of using SMAs for investors?
How do SMAs differ from mutual funds or ETFs?
What are some reasons why investors choose SMAs over other investment options?
How can SMAs help investors minimize their tax liability?
Give an example of how SMAs can be used to meet an investor’s customization requirements.
How can SMAs help investors diversify a concentrated stock position?
What are the drawbacks of managing SMAs without the right tools?
How can partnering with a firm like Russell Investments help financial advisors implement SMAs more effectively?
Direct Indexing
What is Direct Indexing?
What is Personalized Indexing?
What investment challenges can Direct Indexing help solve?
How does Direct Indexing in Separately Managed Accounts differ from commingled product options like mutual funds and ETFS in terms of tax efficiency?
How does Direct Indexing differ from mutual funds and ETFs in terms of personalization?
How can Direct Indexing help mitigate the tax impact of reducing a concentrated stock position?
What are some challenges investors face reducing a concentrated stock position?
What benefits does Direct Indexing provide in managing tax implications for future taxable events?
Why is it beneficial to plan for future financial windfalls by using Direct Indexing SMAs and generating tax losses over time?
Transition Analysis
How can a transition analysis help investors when repositioning their portfolios?
What are the two approaches to transitioning a portfolio in a tax-efficient manner?
How can a transition analysis assist investors in making decisions about their portfolio transition?
What is the purpose of assessing tracking error when repositioning a portfolio?
How can a tax-managed transition help investors with concentrated or unmanaged portfolios?
What role can financial professionals play in guiding investors through portfolio transitions?
Customization, Values- and Faith-Based Investing, and Charitable Giving
What are some customization options that investors may seek when it comes to their investment portfolios?
What advantage does the Personalized Managed Accounts program offer in terms of customization?
How can offering a portfolio aligned with clients' values differentiate financial advisors?
How does the PMA program support charitable giving?
PMA
What does PMA mean?
How can Personalized Managed Accounts (PMA) enhance customization and tax management?
How does the Personalized Managed Accounts (PMA) program work?
Depending on an investor’s goals and preferences, one, or a combination of our SMAs offered through the PMA program will form the foundation of the investor’s personalized portfolio. Then select one or multiple features to customize the portfolio to best reflect unique needs or select from a list of pre-defined exclusions.
What types of separately managed accounts are offered through the PMA program?
What are the advantages of the PMA program?
- Maximizing after-tax wealth
- Aligning values-based preferences with investments
- Diversifying a concentrated stock position
- Limiting purchases in stocks or industries already owned
- Developing an optimal tax-efficient transition plan
How to choose the best investment strategy under the PMA program?
Why choose Russell Investments for Personalized Managed Accounts?
Our PMA program leverages the best that Russell Investments has to offer. It features a dedicated team of portfolio managers, quantitative research analysts and service teams, centralized trading and implementation, as well as automated year-round tax management capabilities, including tax-loss harvesting, wash-sale minimization, tax-smart turnover and holding-period management. Ultimately, these customized SMAs will help clients meet their desired outcomes by minimizing the impact of taxes and transaction costs while maintaining tracking error to a target portfolio. We leverage technology to help investors achieve growth and optimal after-tax outcomes.