Advisor’s client had $20MM, representing 93% of her wealth, in low-basis Cisco stock. Aperio modeled outcome scenarios and built a presentation which the advisor used to persuade the client to liquidate 85% of the stock.
Advisor’s prospective client had $37MM in low-basis stocks spread across nine managers. Aperio conducted a transition analysis by tax lot helping the advisor tax efficiently re-allocate $20MM and win the client.
Advisor used Aperio’s Active Tax Indexing strategy in combination with other asset classes. Aperio demonstrated that the Active Tax Indexing strategy completely eliminated the taxes due from the client’s hedge fund exposure.
Advisor’s client wished to gift $6.0MM of his Aperio portfolio to charity. Aperio selected the optimal securities, and also helped the advisor avoid paying $1.0MM in unnecessary taxes.
Advisor needed to raise $4MM in cash for a client while maintaining asset allocation targets across multiple managers. Aperio analyzed the tax costs and saved the client $136K in taxes by integrating two portfolios.
Advisor's client had $300MM across multiple Charitable Remainder Trusts (CRTs), including a significant allocation to hedge funds. Aperio designed a "tax arbitrage" strategy to track the MSCI All Country World Index expected to save the client an estimated $32.7MM in taxes over 10 years.
Aperio Group was asked by the United Way of the Bay Area (UWBA) to demonstrate how their public equity portfolio could be managed to capture broad equity market returns while emphasizing Bay Area companies and companies whose behavior is most consistent with the mission of UWBA (published by The Federal Reserve Bank of San Francisco, Working Paper: Impact Investing for Small, Place-based Fiduciaries: The Research Study Initiated by the United Way of the Bay Area, Dec. 2012)
Client told her consultant: “When I look at my portfolio I want to see companies that will change the world!” Aperio worked with the investor and her consultant to create a customized strategy that met her social and impact criteria while tracking the MSCI World Index.
Challenge
The consultant needed to balance his client’s desire to make a difference with her wealth with his fiduciary responsibility to ensure the highest net return on a risk-adjusted basis.
A family foundation was frustrated with investment experts who dismissed its social concerns and social experts who lacked investment acumen. Aperio worked with the family to define their values and create a custom portfolio that tracked a standard benchmark: the Russell 1000.
Consultant’s client needed a portfolio that adhered to the United States Conference of Catholic Bishops Socially Responsible Investment (USCCB SRI) Guidelines. Aperio developed a custom Catholic portfolio to track the Russell 3000.
A well-known national animal sanctuary organization wanted a humane investment portfolio screened for specific criteria. Aperio built a custom portfolio to match the society’s seven criteria, but with low tracking error to the Russell 1000.
Aperio helped a large religiously-affiliated fund sponsor provide investors with the first MSCI ACWI ex US index fund with a socially responsible screen.
A consultant recommended a well-known institutional Quality Manager to a family office, but the client expressed concerns over cost and tax efficiency. Aperio created a custom portfolio strategy screened for quality factors, at lower cost and with active tax management.
