Fidelity Investments introduced a unified managed account platform on Wednesday.
Fidelity Personalized Portfolios, which provides a daily tax-sensitive investment management solution and other key features, is aimed at affluent investors with at least $200,000 in investable assets. It offers a single portfolio that can include mutual funds, exchange-traded funds and individual securities.
According to a Fidelity survey of affluent investors, 48% that own a UMA chose it because they had an increase in wealth and wanted to reduce the complexity of their portfolios, or address their significant investment-related tax obligations. Twenty-eight percent of those surveyed said tax benefits were one of their most urgent household concerns. Additionally, 39% said they aren't sure where to invest to get a good return and not lose money.
Morningstar cites that on average, over the 74-year period ending in 2009, investors who did not manage investments in a tax-sensitive manner gave up between 100 and 200 basis points of their annual returns to taxes.
"Today's challenging market conditions and ever-changing tax landscape are unsettling for many investors," said John Sweeney, executive vice president, Fidelity Investments. "Fidelity Personalized Portfolios addresses this concern by providing a professionally managed solution for investors who have accumulated wealth, are focused on proactive management of their portfolios in the current market environment, and want help managing and assessing their current holdings and potential tax consequences to try to achieve better after-tax returns."
Fidelity’s new UMA platform was developed with Strategic Advisers Inc., a registered investment advisor and wholly owned subsidiary of FMR LLC, the holding company for Fidelity Investments. Strategic Advisers has been providing asset allocation, retirement and tax-sensitive investment management services to Fidelity's individual and institutional clients for nearly two decades.
Fidelity is based in Boston.
