Russell Investments expands the options for direct indexing in the PMA Suite

SEATTLE – (BUSINESS CHP) – Russell Investments has expanded its package of personalized managed accounts (PMA) with the launch of two additional direct indexing options that provide personalized exposure to international and fixed capital. The company’s PMA package now includes eight separately managed accounts (SMAs), which combine actively managed SMAs for shares with directly indexed SMAs. These solutions use technology to help investors achieve growth and optimal results after tax.

“Our expanding package of PMA solutions draws on the company’s full suite of tools from active and directly indexed strategies, along with 40 or more years of active investment experience and over 20 years of tax management experience,” they said. Kevin Knowles, Senior Director, Custom Solutions at Russell Investments. “The result gives wealth managers the opportunity to provide personalized wallets that can be tailored to suit each client’s unique preferences and at an attractive price.

PMAs offer a wide range of custom overlay and exclusion services, including:

  • Increasing wealth after taxes

  • Development of an optimal tax-efficient transition plan

  • Align specific ESG preferences with investments

  • Diversification of concentrated stock positions

  • Restrict purchases in stocks or industries that the customer already owns or is biased

Russell Investments’ PMA solution includes a dedicated team of portfolio managers, quantitative research analysts and service teams, centralized trading and implementation; as well as automated year-round tax management capabilities, including tax loss collection, minimizing laundry sales, smart tax turnover and retention period management. Ultimately, these SMAs aim to help clients achieve the desired results while minimizing the impact of taxes and transaction costs, while maintaining a tracking error to a target portfolio.

With the addition of two direct indexing options, the company’s PMA package now includes:

  • Two custom SMA fixed capital solutions: Core Equity and Direct indexed fixed capital (new)

  • Three personalized active SMA strategies: large capitalization, small / medium capitalization and international

  • Three custom passive SMA strategies: Directly Indexed Large Constraint, Directly Indexed All Cap, and Direct Indexed International (new)

The newly added customized direct indexed fixed capital SMA seeks to ensure long-term capital growth by allocating shares to US and internationally developed markets. It is designed to track the effectiveness of a mixed distribution to the Russell 3000® index and the MSCI World ex USA (Net) index. The newly added customized direct indexed international SMA seeks to ensure long-term capital growth in stocks in developed markets outside the United States. It is designed to track the performance of the MSCI World ex-USA (Net) index.

Both strategies are designed to deliver customized investment results by including customer-centric customization such as tax administration, ESG considerations, and custom screens.

“Investors increasingly want more control and personalization of their portfolios,” Knowles said. “With over five decades of experience in providing institutional investment solutions, we are happy to provide these complementary SMA solutions to help our partners and advisors achieve the desired results from their clients.”

About Russell Investments

Russell Investments is a leading global investment decision firm, providing a wide range of investment opportunities to institutional investors, financial intermediaries and individual investors worldwide. Building on the 86-year legacy of continuous innovation to deliver exceptional value to customers, Russell Investments works every day to improve the financial security of its customers. The company has $ 326.3 billion in asset management (as of March 31, 2021) for customers in 32 countries. Headquartered in Seattle, Washington, Russell Investments has offices in 19 cities around the world, including New York, London, Toronto, Tokyo and Shanghai.

Personalized Account Management (“PMA”) is a program of Russell Investment Management, LLC (“RIM”) and offers personalized portfolio management services.

Each custom separately managed account is a product of Russell Investment Management, LLC (“RIM”) and is offered through PMA. It is a collection of portfolio models provided by RIM, in which each composite reflects model portfolios of RIM and third-party investment advisers selected by RIM. When the model is implemented, the PMA is a program for separately managed accounts of individually owned securities that can be tailored to achieve the investor’s investment objectives. RIM partners with external third-party money managers to offer diversified accounts managed with single or multiple assets that can be customized to the investor’s investment objectives, circumstances, and preferences, such as (but not limited to) market exposure. risk management, taxes management, environmental, social and management considerations and return targets. With the exception of any allocations to pooled investment instruments, if any, each investor’s account is managed separately from other investors’ accounts, allowing for a personalized experience to deliver unique investment results.

Diversification and strategic asset allocation do not guarantee a profit or a guarantee against losses in declining markets. Please remember that all investments carry some level of risk. An investment in one or more separately managed accounts is not a complete investment program and involves risk; a major loss is possible. The main value of the account is not guaranteed at all times. There is no guarantee that the objectives in this material will be achieved. The decision to use PMA in investors’ portfolios and related investment advice is provided through financial advisors and other financial intermediaries that are independent of RIM and its affiliates.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion on the appropriateness of any investment. The general information contained in this publication should not be undertaken without obtaining specific legal, tax and investment advice from a licensed professional.

Please note that the products and services listed in this document may or may not be available in your company. Check with your company for availability.

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