Russell Investments Introduces Eight New Fixed-Income and Multi-Asset SMAs

Russell Investments, a prominent Seattle-based investment manager and OCIO, has recently unveiled a lineup of eight new separately managed accounts focused on fixed-income and multi-asset strategies.

Enhanced Portfolio Offerings

The new offerings from Russell Investments include four fixed-income portfolios structured as municipal and Treasury ladders. Laddered strategies are designed to provide diversification by incorporating bonds with varying maturity dates.

Related: Morningstar Wealth Adds SMAs to U.S. Wealth Platform

Kevin Knowles, senior director of personalized solutions for Russell, emphasized the importance of simplicity for advisors and clients. These new products aim to streamline the investment process by offering fully-allocated portfolios within single accounts.

The remaining four products consist of multi-asset options that combine equity and fixed-income securities in either direct indexing or a blend of active and direct indexing allocations.

Related: Advisors Favor SMAs Over Model Portfolios, Citing High Fees, Limited Customization

According to Knowles, these multi-asset solutions provide advisors with a comprehensive investment approach, resembling a UMA-like experience within an SMA framework.

Advisor-Driven Innovation

The decision to introduce these new products was fueled by demand from advisors seeking innovative solutions for their clients. Knowles noted a shift towards offering more diversified and sophisticated strategies to cater to varying investor needs.

Neil Bathon, founder and partner at FUSE Research Network, highlighted the industry trend moving away from individual strategies towards SMAs. The advantages of SMAs, such as pricing flexibility, tax efficiency, and customization options, are appealing to a broad range of advisors.

Availability and Product Details

The newly launched products are accessible on leading custodial platforms, including Charles Schwab, the Fidelity Separate Account Network, and SMArtX Advisory Solutions, with partial availability on Envestnet SMA.

The product lineup includes:

• Personalized Municipal Ladder 1-5 Year SMA
• Personalized Municipal Ladder 1-10 Year SMA
• Personalized Treasury Ladder 1-5 Year SMA
• Personalized Treasury Ladder 1-10 Year SMA
• Personalized 60/40 DI Core Allocation SMA
• Personalized 70/30 DI Core Allocation SMA
• Personalized 60/40 Core Allocation SMA
• Personalized 70/30 Core Allocation SMA

With investment minimums ranging from $250,000 to $850,000, these products cater to various investor profiles and objectives.

Conclusion

Russell Investments continues to lead the way in offering sophisticated investment solutions tailored to the evolving needs of advisors and clients. The introduction of these new SMAs underscores the firm’s commitment to providing innovative and diversified portfolio options for investors seeking enhanced financial outcomes.