Fidelity Expands SMA Offerings for RIAs

Fidelity Investments has announced the introduction of six new custom strategies and two new models to its Separately Managed Account (SMA) lineup, catering to RIAs and broker/dealers. These new offerings include institutional tax-managed enhanced and fundamental equity strategies, featuring actively managed large-cap approaches. The firm has also launched new equity model SMAs, such as the Fidelity Institutional Blue Chip Growth Focused Model SMA and the Fidelity Institutional Small Growth Focused Model SMA. These models are designed for seamless integration into Unified Managed Accounts (UMAs), offering a tax-efficient method for portfolio management. This expansion aligns with the increasing demand for personalized investment solutions, a trend observed particularly among ultra-high-net-worth investors. The importance of integrating model portfolios and strategies with UMAs is underscored by Cerulli Associates data, which shows UMAs as the fastest-growing segment in the managed account universe, experiencing a compounded annual growth rate of 18.7% over the five years ending in 2024. Additionally, model portfolios are projected to reach $18.6 trillion by 2030, with advisors showing a preference for custom options.