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.
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
- Brandywine Global Investment Management, LLC
- J.P. Morgan Investment Management, LLC
- Jacobs Levy Equity Management, Inc.
- William Blair Investment Management, LLC
Overview
Large Cap Managed Account
Fact Sheet
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
- Ancora Advisors, LLC
- BAMCO, Inc.
- Copeland Capital Management, LLC
- DePrince, Race & Zollo, Inc.
- Penn Capital Management, LLC
- Polen Capital Management LLC
- Royce & Associates, LP
- Summit Creek Advisors, LLC
Overview
Small/Mid Cap Managed Account
Fact Sheet
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
- Intermede Investment Partners Limited and Intermede Global Partners Inc
- Pzena Investment Management, LLC
- Wellington Management Company LLP
Overview
International Managed Account
Fact Sheet
Notice:
* Managers listed above are current as of 8/8/2023. 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.