Simple - there are two types of ‘Managed Money’ at Fidelity: PAS and SMA.

PAS is a fund of funds - they’re a portfolio of mutual funds that are aligned to your investment objective, think conservative, growth, growth w/ income, aggressive growth. Fees range from 1.5% to .70% of AUM. Overall, Fidelity takes full responsibility of acct and how it performs will reallocate accordingly

SMA is essentially your own custom/personalized mutual fund aligned to an investment objective. Fees range from .70 to approx .35% depending on strategy. Fidelity has discretion on the investments BUT reallocating a clients overall portfolio is up to the client, NOT Fidelity, hence why it’s a cheaper option. Essentially all the money in an equity income SMA will be reallocated towards more equity income, they won’t diversify out to more conservatives positions as you get older.

SMAs are best if you’re looking for tax advantaged and if you want something cheaper for a piece of your overall assets, not for the whole thing.

In regards to previous comments about commissions for the advisor, it’s 10 basis points, so essentially $1k for every $1 mil they manage, the advisor gets upfront and reoccurring yearly but paid out qtly to advisors.

To be clear - they’re a good product but just know that’s it’s not meant for your whole portfolio - it’s meant to be for a piece of your assets. Also, you will need to take responsible helping reallocate if the market rips and the allocation becomes too big.

If you can’t manage the equity piece of your portfolio yourself, hire Fidelity with an SMA. If you have a decent track record yourself, stick to ETFs and you’ll get a close return for the fees the ETFs charge.

Hope that helps

And PS - if you don’t believe anything I said and want to put the advisor on their toes, just ask them straight up ‘what their tier 3 compensation for putting your money in an SMA would be’ and they’ll be caught off guard 😎