Optimizing the tax efficiency of hedge funds in Charitable Remainder Trusts
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.
Raising cash in a portfolio while maintaining asset allocation targets
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 $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.
Using tax-loss harvesting to eliminate taxes from hedge funds
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.