Why separately managed accounts (SMA)
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 benefit 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.
Effective October 1, 2020, the Large Cap Managed Account benchmark was changed from the Russell 1000® Index to the S&P 500® Index.
Effective October 1, 2020, the Small and Mid-Cap Managed Account name was changed to Small/Mid Cap Managed Account.
* 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.