SPOTLIGHT
Advisor Learning Series: Custom SMAs
Learn about the potential benefits of custom SMAs, and how to put them to work for your clients.
Unlock the potential of custom SMAs with our advisor learning series. Enhance your knowledge of these personalized investment portfolios and gain the tools to effectively communicate their potential benefits to your clients.
Why consider custom SMAs? Custom SMAs offer more than just market exposure for your portfolios. They can provide:
Enhanced tax efficiency
Help optimize your clients' tax situations.
Personalized solutions
Address specific preferences or manage concentrated positions.
Broad market access
Access a diverse array of investment building blocks.
What you'll learn in this series
This ongoing series is designed to equip you with the knowledge and insights needed to navigate the evolving landscape of custom separately managed accounts (SMAs). We begin by demystifying direct indexing and custom SMAs, laying the groundwork for understanding their structure, purpose, and potential. Each installment will examine the core concepts and potential key advantages of these investment vehicles, helping you grasp how they can be leveraged to meet diverse client needs.
You ll gain clarity on common use cases, spanning a variety of financial goals, and explore tax efficient strategies, including tax loss harvesting, to better understand the impact of tax management on client portfolios. We ll also walk you through the transition process to a custom SMA highlighting the steps involved, the strategic considerations, and the potential benefits of personalization and risk management.Whether you're looking to enhance client outcomes or deepen your understanding of modern portfolio customization, this series will serve as a valuable resource. Be sure to check back regularly for the latest updates and insights.
Related insights
Diversification does not ensure a profit or guarantee against a loss.
The value of a strategy s investments will vary in response to many factors, including adverse issuer, political, regulatory, market, or economic developments. The value of an individual security or a particular type of security can be more volatile than and perform differently from the market as a whole. Nearly all accounts are subject to volatility in non U.S. markets, either through direct exposure or indirect effects on U.S. markets from events abroad, including fluctuations in foreign currency exchange rates and, in the case of less developed markets, currency illiquidity. Events such as natural disasters, pandemics, epidemics, and social unrest in one country, region, or financial market may adversely impact issuers in a different country, region, or financial market. Performance could be negatively impacted if the value of a portfolio holding were harmed by such political or economic conditions or events. Moreover, such negative political and economic conditions and events could disrupt the processes necessary for investment operations.
Accounts that are tax managed invest generally in equity securities and use investing techniques that seek to enhance after tax returns, including, without limitation, harvesting tax losses and the potential deferral of capital gains. The effectiveness of such techniques cannot be guaranteed.
It is important to understand that the value of tax loss harvesting for any particular client can only be determined by fully examining a client's investment and tax decisions for the life of the account and the client, which our methodology does not attempt to do. Clients and potential clients should speak with their tax advisors for more information about how a tax loss harvesting approach could provide value under their specific circumstances.
Fidelity Brokerage Services LLC ("FBS ), an affiliate of FIWA, is a registered broker dealer. FBS distributes FIWA's Accounts as a paid solicitor
Fidelity Institutional Wealth Adviser LLC ("FIWA ) is a registered investment adviser that provides customized separately managed account portfolios to clients ( Accounts or Account ) which are generally individuals and entities representing such individuals, including other registered investment advisers and other institutional accounts (i.e., endowments, foundations).