New Lineup Includes Fidelity Target Allocation Tax-Aware Model Portfolios, Model Portfolios with Separately Managed Account (SMA) & Tax-Aware Model Portfolios with SMA
Fidelity Institutional, the division of Fidelity Investments dedicated to providing technology, solutions, and insights to wealth management firms and institutions, expanded its model portfolio suite by announcing the launch of Fidelity Target Allocation Tax-Aware Model Portfolios with nine equity and fixed income mixes (10/90, 20/80, 30/70, 40/60, 50/50, 60/40, 70/30, 85/15, and 100/0)i, each versioned for I and Z share classes. These model portfolios are now available through Fidelity’s managed account platform, Fidelity Managed Account XchangeSM (FMAX), and the Envestnet platform.
“The tax-aware model portfolios leverage Fidelity’s decades of portfolio management experience and diverse investment capabilities to enhance the advisor experience and empower them to better serve clients through diversified offerings, flexibility, and customization”
Using a blend of actively managed funds from Fidelity and ETFs from other asset managers, these new target allocation tax-aware model portfolios seek to enhance total return through fund selection and help reduce the impact of taxes on returns.
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“We’re committed to providing choice and flexibility, and as the marketplace and investor preferences continue to evolve, we want to enable advisors to efficiently manage their clients’ investments in a customizable way that is tailored toward tax efficiency,” said Suzanne Daly, vice president of Model Portfolio Business Development, Fidelity Institutional. “The tax-aware model portfolios leverage Fidelity’s decades of portfolio management experience and diverse investment capabilities to enhance the advisor experience and empower them to better serve clients through diversified offerings, flexibility, and customization,” added Daly.
New Model Portfolios Help Advisors Deliver on Investors’ Unique Needs
As part of its commitment to meeting client needs, Fidelity continues to enhance its model manufacturing capabilities to increase advisors’ ability to accommodate a range of investors, helping them manage money more efficiently so that they can focus on providing relevant and differentiated value to their clients. In addition to the target allocation tax-aware model portfolios, Fidelity is also introducing:
- Fidelity Model Portfolios with Separately Managed Account (SMA) with five equity and fixed income mixes (20/80, 40/60, 60/40, 70/30, 85/15)ii each versioned for I and Z share classes. These model portfolios use a blend of mutual funds, ETFs, and SMAs from Fidelity and other asset managers designed to provide enhanced risk-adjusted total return across the risk spectrum.
- Fidelity Tax-Aware Model Portfolios with SMA with five equity and fixed income mixes (20/80, 40/60, 60/40, 70/30, 85/15)iii each versioned for I and Z share classes. These model portfolios use a blend of mutual funds, ETFs, and SMAs from Fidelity and other asset managers, including municipal bond investments to help reduce the impact of taxes on returns.
Both model portfolios with SMAs are Unified Managed Account (UMA) asset allocation models that incorporate SMA building blocks alongside active mutual funds and ETFs, making it easier for advisors to leverage Fidelity Model Portfolios within a larger UMA. These are the first Fidelity UMA models available through the Envestnet platform.
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Expanding Access and Availability to Fidelity Model Portfolios
Advisors can access Fidelity’s broad range of model portfolios across more than 20 platforms, making it easy for them to leverage models wherever they do business. Direct integration with a growing number of third-party platforms, such as Envestnet, Orion, 55ip and more, delivers flexibility to advisors and enables them to maximize the value of their platforms’ functionality, as well as to work more seamlessly across platforms.
Fidelity Institutional, the division of Fidelity Investments dedicated to providing technology, solutions, and insights to wealth management firms and institutions
Fidelity Model Portfolios are also available through Fidelity platforms such as the managed account platform FMAX, and integrated into the WealthscapeSM Modeling & Rebalancing tool, making it simpler for advisors to view, customize and allocate to the portfolios.
More than 8,000 wealth management advisors are now subscribed to Fidelity Model Portfolio updates. Subscribers receive periodic updates on model reallocation rationales, market and model performance commentaries, and investing insights from Fidelity. Advisors can also access marketing collateral on the models that they can easily share with clients, helping them explain the value of models and where they fit into a client’s overall portfolio.
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