Tax Optimization
Custom SMAs designed to maximize after-tax returns
Today’s investors expect personalized advice, tailored portfolios, and confidence that their unique goals are being addressed. Invesco’s outcome-focused approach includes custom solutions and comprehensive support.
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Focus on outcomes
We help advisors align portfolios to client goals while making customization more scalable and easier to implement.
#2
Custom solutions
Our model portfolios and separately managed accounts bring you and your clients the power of personalization.
#3
Built for your needs
We provide continuous guidance and practical resources to help with evolving client concerns and objectives.
01
Outcomes for you and your clients
We help advisors build portfolios aligned to client goals while improving practice outcomes.
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Custom solutions
Our custom model portfolios and SMAs help with tax optimization and personalization, aligning portfolios to client‑specific goals and constraints. Talk to an investment specialist to evaluate your needs.
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Designed for you
Customization isn’t only about portfolio construction. Our ongoing insights and support help translate portfolio decisions into client confidence and practice success. Connect with our team to help guide your journey every step of the way.
Frequently asked questions
A custom separately managed account (SMA) is a professionally managed portfolio of individual securities that can be tailored to an investor's specific goals, tax situation, investment preferences, and restrictions. Unlike pooled vehicles, such as mutual funds or ETFs, investors own the underlying securities directly.
Customizing SMAs can include excluding specific stocks or industries, incorporating personal values or investment preferences, managing concentrated positions, addressing tax considerations, and aligning portfolios with unique client objectives.
A custom model portfolio is a professionally designed investment portfolio that is tailored to an advisory firm's investment philosophy, client base, and business needs, while allowing the firm to outsource much of the research, portfolio construction, and ongoing oversight.
Advisors can help determine asset allocation parameters, select managers and vehicles, incorporate existing investment preferences, and align portfolios with their firm's investment philosophy.
A simple way to think about the difference: Custom models provide personalization at the practice level while custom SMAs provide personalization at the client level.
Custom model portfolio |
Custom SMA |
|---|---|
Portfolio framework or blueprint |
Client account invested in securities |
Typically built for an advisor practice or client segment |
Built for an individual client |
Can contain ETFs, mutual funds, SMAs, and other vehicles |
Holds individual stocks and/or bonds |
Emphasizes scalability and efficient portfolio management |
Emphasizes personalization and tax management |
Customization often occurs at the model level |
Customization occurs at the client account level |
Case studies: Outcomes for you and your clients
See how Invesco has helped solve the needs of advisors and their clients.
Problem
An advisor identified clients who held above-average cash balances. At the time, Federal Reserve interest rates appeared to be at a peak, and the advisor wanted to help shield these clients from interest rate risk while incorporating tax planning.
Solution
After hearing what the advisor wanted to accomplish for these clients, Invesco recommended fixed income SMA options that spanned taxable and tax-free bonds, offered various duration targets, and enabled portfolio customization.
Outcome
The clients were pleased that the SMA solution gave them a way to put their cash to work while also planning for both federal and state taxes. They also appreciated that their bond holdings could be tailored to match their values and that account transactions were transparent.
Scalability
Efficient multi-manager, all-ETF approach
Problem
An RIA team sought an efficient method to scale investment management while preserving customization. They requested a multi-manager, all-ETF approach, and wanted to exclude certain asset managers, keep costs low, and use their own portfolio naming convention.
Solution
Invesco developed all-ETF taxable and tax-aware portfolio suites with various risk levels, maintaining costs below 25 basis points. They featured the client's naming convention and logo on all marketing materials.
Outcome
Advisors enjoyed significant time savings on portfolio management and improved client engagement. They were able to spend that newfound time deepening existing client relationships and building new ones.
Custom solutions
Deliver more personalized portfolios with our flexible solutions
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Models Co-branded, co-developed, customizable model portfolios.
Custom model portfolios are co-developed to align with your preferred managers, product types, and asset allocation approach, delivering a tailored solutions for your investment philosophy. By optimizing diversification, risk management, and tax efficiency, custom models help simplify portfolio management while supporting client outcomes. Backed by more than 150 professionals, Invesco’s model portfolios platform manages $216.6 billion in assets.1
Explore custom models
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SMA Customizable, cost-efficient and tax-smart SMAs
Invesco’s separately managed accounts (SMAs) provide a flexible, tax-smart, and cost efficient way to help meet clients’ unique investment needs. Portfolios can be customized to align with individual goals, values, tax situations, and liquidity preferences, while our centralized technology and investment expertise enable efficient delivery at scale. Today, Invesco manages approximately 37,000 unique SMA accounts representing $35.3 billion in assets.
Explore SMAs
The journey to custom
There are five steps to building a custom practice. Learn how Invesco can help with each one.
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01 Segment your practice
- Determine who warrants a customized approach
- Define your role: portfolio manager, relationship manager, or both
- Align customization and outsourcing with your practice goals
- Evaluate scalability requirements and growth objectives
- Explore the four steps of strategic client segmentation
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02 Prioritize client needs
- Identify goals, risk tolerance, and planning priorities
- Flag tax, income, liquidity, or legacy needs
- Capture preferences, restrictions, and concentrated positions
- Determine where customization can solve a specific challenge
- Get to know your clients with deep discovery
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03 Build the solution
- Evaluate models, SMAs, and customization options
- Define asset allocation, manager selection, and tax strategy
- Create a repeatable portfolio framework
- Leverage investment expertise, consulting, and operational support
- Contact our custom portfolio experts to get started
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04 Bring clients along
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05 Scale your practice
- Redirect time from portfolio management to business growth.
- Deepen client relationships and develop new business
- Increase referrals and planning conversations
- Focus on team development and practice management
- Explore practice management resources for enhancing your business
Important Information
NA5889086
Invesco does not offer tax advice. Investors should consult their own tax professionals for information regarding their own tax situations.
This is not to be construed as an offer to buy or sell any financial product and should not be relied upon as the sole factor in an investment making decision This does not constitute a recommendation of any investment strategy for a particular investor. Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them. Please obtain and review all financial material carefully before investing. As with all investments there are associated inherent risks.
Invesco model portfolios are overseen by the Invesco Solutions team. The team is a part of Invesco Advisers, Inc., an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. It is an indirect, wholly owned subsidiary of Invesco Ltd. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed.
