Tax-Managed Transitions: Paths to Smarter Diversification

Separately managed accounts can be a useful tool for investors looking to align portfolios more closely with client goals while improving control over risk and taxes. They allow for more tailored portfolio transitions, which can help preserve strategy continuity during changes in objectives or market conditions.

This structure may also support tax efficiency through greater flexibility in managing gains and losses. For advisors, the appeal lies in balancing customization with disciplined implementation, especially when portfolios need to evolve without creating unnecessary friction.