Advisor Partners’ investment philosophy for the taxable investor

Advisor Partners follows an investment philosophy shared by a growing number of industry leaders that a significant portion of a client's portfolio be allocated to a tax-efficient core linked to a broad market benchmark. Our philosophy is based on an institutional consulting approach that uses an indexed, structured core solution rather than traditional style boxes.

Equity markets are highly efficient. Active portfolio management is unlikely to outperform a low-cost, tax-efficient, index-based investment approach net of fees, costs and taxes.

We believe that for individual investors, taxes are an important, but controllable, concern. An index-based approach for core equity portfolios delivers the most compelling after-tax investment results. Taxes and transaction costs should be addressed at portfolio transition, throughout the portfolio's life, and at portfolio disposition.

A portfolio managed as a separate account allows for a customization and active tax-management plan built around the unique needs of each individual investor. The objectives of Advisor Partners' philosophy are to:

• Customize the portfolio to the investor’s particular circumstances and preferences.

• Minimize investor tax liability by defining and implementing an ongoing pro-active tax plan.

• Seek market returns and mitigate portfolio risk through diversification.

• Maximize portfolio after-tax return by minimizing turnover, investor tax liability and management costs.