Fidelity® Separately Managed Accounts

Combining the value of professional investment management with the advantages of a transparent, personalized structure—a separately managed account from Fidelity might be the right fit to help you reach your financial goals.

Overview

Why separately managed accounts (SMAs)?

SMAs are portfolios of individual securities that are managed by professional asset managers who focus on specific asset classes, such as equity or fixed income. SMAs also allow you to own individual securities directly—instead of through a mutual fund or exchange-traded fund (ETF). When employed to complement your overall portfolio, SMAs can provide greater transparency, as well as increased opportunities to personalize your account and apply tax-smart investing techniques1 in an effort to increase after-tax returns.


As shown in hypothetical example, this investor has employed one or more SMAs as a portion of the portfolio's allocation.

Pie chart depicts the role an SMA can play in an overall portfolio. In this hypothetical illustration, one or more SMAs are used as a portion of a client's domestic stock, foreign stock, and bond allocations.

The advantages of SMAs

While mutual funds (MFs) and ETFs can help you achieve your long-term financial goals, as the table shows, SMAs can provide some distinct advantages.

Features* SMAs MFs ETFs
Professional money management
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Specific investment objective
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Reduce capital gains distributions3
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Potential for personalized tax management
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Direct ownership of securities
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Opportunity to bring in existing holdings
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Low minimums available  
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Transparency of holdings
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Simplicity of owning one holding  
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Ability to add personalization
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* For more information on the risks and costs associated with investing in SMAs, mutual funds, and ETFs, please refer to endnote.4

Investing in SMAs at Fidelity

Fidelity's SMAs provide a range of investment solutions uniquely constructed for individual clients.


  • Expertise — Leverages wide-ranging global research and analytics to deeply understand market and investment opportunities and risks
  • Experience — An extensive history managing equity and fixed income strategies as well as investment manager selection
  • Access — You'll have access to SMA portfolio strategies that are exclusively available through Fidelity

Multiple investment solutions

Fidelity offers several U.S. equity SMAs, providing investors with a range of potential investment solutions designed to help meet client's investment objectives and risk tolerance.

Income oriented

Fidelity® Equity-Income Strategy
Seeks to balance the need for long-term growth of capital and dividend income with the potential for less volatility than the US stock market

Capital appreciation

Fidelity® US Large Cap Equity Strategy
Leverages the power of Fidelity's stock and style selection in an effort to deliver returns greater than the S&P 500® Index over a full market cycle

Tax-managed index

Fidelity® Tax-Managed US Equity Index Strategy
Seeks to provide long-term growth of capital by investing in U.S. equity securities and to enhance after-tax returns by leveraging Fidelity's tax-smart investing techniques1

Investment minimums: $100,000

Gross annual advisory fee: 0.20%–0.90% (varies based on strategy and total assets invested)2

Fidelity offers two different international equity SMAs, providing investors with exposure to developed-market countries outside the U.S. and designed to help meet client's investment objectives and risk tolerance.

Capital appreciation

Fidelity® International Equity Strategy
Utilizes active management to diversify across developed-market countries outside the U.S. in an effort to deliver returns greater than the MSCI EAFE Index (Net MA Tax) over a full market cycle

Tax-managed index

Fidelity® Tax-Managed International Equity Index Strategy
Seeks to provide long-term growth of capital by investing in international developed-market equity securities and to enhance after-tax returns by leveraging Fidelity's tax-smart investing techniques1

Investment minimums: $100,000

Gross annual advisory fee: 0.20%–0.90% (varies based on strategy and total assets invested)2

Multiple investment solutions

Fidelity offers a variety of professionally managed fixed income SMAs, providing investors with access to institutional dealers and pricing, extensive credit research and oversight that goes beyond just agency ratings. Active management focuses on duration management, yield curve positioning, and identifying value opportunities in the market.

Taxable income

Fidelity® Core Bond Strategy
Seeks to generate income while limiting risk to principal through a diversified portfolio of primarily investment-grade bonds.

Federally tax-exempt income

Fidelity® Intermediate Municipal Strategy
Seeks to generate federally tax-exempt interest income from investment-grade municipal bonds while limiting risk to principal

Federally tax-exempt income

Breckinridge Intermediate Municipal Strategy
Strives to limit risk to principal while generating federally tax-exempt interest income from investment-grade municipal bonds.

Investment minimums: $350,000

Gross annual advisory fee: 0.35%–0.40% (varies based total assets invested)2

More information