Fidelity Expands SMA Product Line With Six Custom and Two Model Strategies

Fidelity Investments said it is expanding its separately managed account product line with six custom strategies and two model strategies for registered investment advisers and broker-dealer clients. According to Odaily, the firm said the additions are designed to improve personalized investment services for high-net-worth clients.

The new strategies include Fidelity Institutional Tax-Managed Enhanced Equity and Fidelity Institutional Tax-Managed Fundamental Equity. Fidelity said both strategies cover large-cap core, growth, and value investing, combining its active management capabilities with a customized SMA service model.

Fidelity said the enhanced equity strategy uses a benchmark-tracking framework to look for excess return opportunities through diversified alpha factors, while the fundamental equity strategy uses a systematic portfolio construction process and high-conviction stock selection.

The company said these strategies are now available to RIA firms through its customized SMA platform, which is integrated with Fidelity Wealthscape. Fidelity said the platform can help wealth management firms handle client account opening, strategy customization, execution, and portfolio monitoring.

Amanda Robinson, head of distribution for Fidelity Wealth Advisor Solutions, said investors' demand for personalized investment experiences continues to grow, especially among ultra-high-net-worth clients. She said advisers need more flexible and customized asset management tools, and Fidelity combines active management, direct indexing, and factor strategies to provide deeper portfolio customization and tax management capabilities.

Since launching its institutional customized SMA product line in 2022, Fidelity said the number of standardized SMA strategies it offers has grown to 50. It also said advisers can combine multiple indexes or strategies to create customized allocations based on client needs.

Fidelity also introduced two equity model SMA strategies, Blue Chip Growth Focused Model SMA and Small Growth Focused Model SMA, for RIA and broker-dealer clients. The firm said they can be integrated into unified managed account systems for broader and tax-optimized investment management.

Fidelity said it now offers eight active equity model SMA strategies covering U.S. stocks, sector, and international stock markets, along with five factor model strategies and two index model strategies available through Fidelity Managed Account Xchange and third-party platforms.

The company said its SMA strategies are developed by the quantitative research and investments team within Fidelity Asset Management, which includes more than 250 quantitative analysts, data scientists, and technologists. Fidelity said the team uses proprietary data, systematic investment methods, and artificial intelligence to identify investment opportunities.