Partnership aims to propel Russell Investments as the industry’s leading provider of customized tax-managed solutions
Russell Investments has selected Vestmark, a leading provider of portfolio management and trading software and outsourced services, to power the design, construction and management of an array of inventive Personalized Managed Accounts (PMA) that can be customized to meet a wide range of client needs. PMA will initially feature six tax-managed separately managed accounts (SMA) that leverage technology to help meet both growth and optimal after-tax outcomes. These distinctive solutions will include three actively managed equity SMAs, two direct-indexed SMAs and a core equity SMA, which combine active and lower-cost direct indexing. Each will provide financial advisors with the opportunity to customize their high-net-worth investors’ portfolios to individual preferences.
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“Our collaboration will deliver investment solutions that ultimately better enable advisors to fulfill the investment needs of their clients through leveraging the scalable client personalization, streamlined and automated tax management capabilities and overall flexibility inherent in our technology.”
“Most tax-sensitive investors have highly specific needs, which can’t always be met with standard investment vehicles. With our own PMA engine, we’re aiming to address the evolving investment needs of advisors with scalable, custom-tailored solutions,” said Brad Jung, head of North America Advisor and Intermediary Solutions at Russell Investments. “By leveraging the award-winning VestmarkONE technology platform, we expect to seamlessly integrate and connect with intermediary program sponsors and platform providers to offer a wide array of personalized investment solutions.”
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Beyond the SMAs expected to launch in the fourth quarter of 2020, the UMA capabilities of the VestmarkONE platform will allow the scale and flexibility to create diversified portfolios utilizing multiple SMA strategies with customization options available to advisors.
The PMA solutions will feature dedicated portfolio managers, quantitative research analysts and service teams; centralized trading and implementation; as well as automated year-round tax management including tax-loss harvesting, wash sale minimization, tax-smart turnover and managing holding periods. Ultimately, the three objectives to help meet desired outcomes will be to minimize the impact of taxes, maintain tracking error to the target portfolio and minimize transaction costs.
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