Fidelity Investments expands its institutional SMA product line, adding 8 new customized and model strategies for wealth management institutions

Odaily reported that asset management institution Fidelity Investments has announced the expansion of its institutional Separately Managed Account (SMA) product line, adding 6 customized strategies and 2 model strategies for registered investment advisors (RIA) and brokerage clients to enhance the personalized investment service capabilities for high-net-worth clients.

The newly added strategies include the Fidelity Institutional Tax-Managed Enhanced Equity and Fidelity Institutional Tax-Managed Fundamental Equity. Both strategies cover large-cap core, growth, and value investment directions, combining Fidelity's long-term active management expertise with a customized SMA service model.

The enhanced equity strategy adopts a benchmark tracking framework, seeking excess return opportunities through diversified Alpha factors; the fundamental equity strategy is based on a systematic portfolio construction process, combined with high-conviction stock selection.

Fidelity stated that the above strategies are now available to RIA institutions via its customized SMA platform, which is integrated with the Fidelity Wealthscape brokerage platform, helping wealth management institutions with client onboarding, strategy customization, execution, and portfolio monitoring.

Amanda Robinson, Head of Distribution for Fidelity Wealth Advisor Management Solutions, said that as investors’ demand for personalized investment experiences continues to grow—especially with the expanding ultra-high-net-worth clientele—wealth advisors need more flexible and customized asset management tools. Fidelity offers deeper portfolio customization and tax management to advisors by combining active management, Direct Indexing, and factor strategies.

Since launching its institutional customized SMA product line in 2022, Fidelity has increased the number of standardized SMA strategies to 50, while also enabling advisors to combine multiple indices or strategies to create customized allocation solutions based on client needs.

Additionally, Fidelity has introduced two stock model SMA strategies: the Fidelity Institutional Blue Chip Growth Focused Model SMA and the Fidelity Institutional Small Growth Focused Model SMA, aimed at RIA and brokerage clients, which can be integrated into a Unified Managed Account (UMA) system for more comprehensive and tax-efficient investment management.

Currently, Fidelity offers 8 actively managed equity model SMA strategies covering US stocks, sector, and international equity markets. Additionally, 5 factor model strategies and 2 index model strategies are available through Fidelity Managed Account Xchange (FMAX) and third-party platforms.

Fidelity stated that its SMA strategies are developed by the Quantitative Research and Investments team under Fidelity Asset Management, which consists of over 250 quantitative analysts, data scientists, and technicians who use proprietary data accumulated over the years, systematic investment methods, and artificial intelligence technologies to uncover investment opportunities.