Fidelity Investments today announced it plans to launch five equity Fidelity Advisor separately managed accounts in early 2020.

The company said these SMAs will be available to advisors through broker-dealer firms, registered investment advisors and managed account platform providers.

Each respective SMA is built off of one Fidelity mutual fund. The FA Growth Opportunities SMA, for example, is based on the Fidelity Advisor Growth Opportunities Fund, a $7.9 billion domestic large-cap growth product comprising nearly 200 securities. Morningstar gives it a five-star rating and an analyst rating of bronze.

“We put the SMA through a process so advisors can have the same targeted outcome and risk profile of the fund, but it will be a much more concentrated version with 40 to 100 names for them to work with,” says Judy Marlinski, president of Fidelity Institutional Asset Management.

She adds that advisors will be able to personalize the SMAs to fit a client's needs. Examples include tax-loss harvesting by pulling out an appreciated stock from the securities bundle and trading it against a loss, or deleting certain securities to avoid overweighting a sector that is a heavy presence in a client’s other accounts. 

Along with the aforementioned FA Growth Opportunities SMA, the four other SMAs are the following:

·  FA International Capital Appreciation SMA — invests in a combination of high-quality, cyclical growth stocks and steady growers that could benefit from long-term mega-trends. 

·  FA Founders SMA — focuses on founder-involved companies with strong earnings growth potential that are trading at reasonable prices. 

·  FA Small Company SMA — holds small-cap stocks with significant growth potential and attractive valuations. 

·  FA Women’s Leadership SMA — invests in companies that prioritize and advance women's leadership and development, and which possess strong competitive moats that can result in durable earnings growth or can benefit from growth opportunities. 

Marlinski says the investment minimum for these SMAs will “generally” be around $100,000, adding it could vary across investment platforms. She notes the SMA fees are undetermined and will be set during negotiations with platforms.

Marlinski says the five new SMAs expand a product line that includes model portfolios employing baskets of mutual funds and ETFs. These are accessible through broker-dealer firms and managed account platform providers.