Fidelity Investments has started a service to manage accounts with an eye toward tax implications for clients.
The Boston fund giant is now offering a Portfolio Advisory Service Special Option to clients with more than $500,000 of assets invested in the stock of one company. The service allows investors to turn over those securities quickly, without incurring big tax liabilities.
"It's pretty diverse group of clients who are beginning to require and are interested in tax-sensitive management of their assets," said Lynn Davis, executive vice president in charge of Fidelity Asset Management and Trust Group.
Launched in February, Special Option has $125 million under management.
Paying mind to taxes on an individual-account basis is a common practice of money managers and trust departments that cater to the very wealthy. J.P. Morgan & Co. offers so-called "tax-aware" mutual funds, but they are geared to multimillionaires.
Fidelity's Special Option service is unusual in that it brings the capability downmarket.
"We are meeting a need in the marketplace that is there and that not too many people are addressing," Ms. Davis said.
Proceeds from the sales of securities in the Special Option accounts will be invested in Fidelity mutual funds. Its annual advisory fee starts at 1.1% for the first $500,000 and incrementally declines to 0.4% as assets are added.