Adding Value Through Tax Alpha
Despite recent price shocks and volatility, there’s one kind of return you can predictably deliver—the tax savings from a systematic loss-harvesting program. Reducing clients’ tax bill is one way to provide value, year after year.
Advisor Partners’ Active Tax Indexing strategies are designed to execute an ongoing, customized plan to limit gains and harvest losses according to individual client needs. This helps you provide Tax Alpha—that is, improved after-tax returns. Harvested losses could be used to offset investment gains or, in some cases, earned income, in accordance with IRS rules.
We build our Active Tax Indexing portfolios with individual stocks, and benchmark the portfolios to standard market indexes. Since Active Tax Indexing portfolios are constructed in the form of separately managed accounts (SMAs), they can also be constrained to exclude individual sectors or securities in keeping with client circumstances—especially helpful for clients with large positions in particular stocks or industries. Whether your client is HNW or mass affluent, Advisor Partners can help, with a flexible solution for account minimums as low as $250k.
With 2016 starting off with continued volatility, consider how you can provide greater value to your clients by adding an active tax indexing strategy to their portfolios.