Strategies

Aperio implements three equity strategies that represent the next generation of index-based investing. The strategies use separately managed accounts to track client-selected indexes, while overlaying tax management, social screening, or other targeted customization tilts. Our strategies can be used in complement or individually.

Active Tax Indexing

  • Separately managed accounts of individual stocks
  • Closely tracks any client-selected benchmark (e.g.,
    Russell 3000, MSCI EAFE, MSCI ACWI)
  • Overlays tax-loss harvesting to improve after-tax returns through “tax alpha”

Socially Responsive Indexing

  • Separately managed accounts of individual stocks
  • Closely tracks any client-selected benchmark (e.g.,
    Russell 3000, MSCI EAFE, MSCI ACWI)
  • Overlays portfolio customization based on the unique environmental, social, governance, or religious values of each client

Thematic Beta

  • Separately managed accounts of individual stocks
  • Fully customized portfolios to express targeted alpha-seeking themes – e.g., high quality, high dividend yield, low volatility, or over/under weighting size, growth, or other risk factors

“Although...after-tax returns are what economically matter to taxable investors, many firms continue to take the view that 'we can ignore taxes as long as our competitor managers do the same.' In our view...intentionally providing less than the best available services to separate account clients is unsustainable in the long run, and borders on a breach of fiduciary responsibility.”

- Dan diBartolomeo, Northfield News, September 2010

SMAs

SMAs are an alternative to funds and ETFs. In contrast to owning a share in a fund, SMAs allow the investor to own each of the individual stocks that comprise the investment strategy.  Ownership of the individual securities enables advanced customization and tax management techniques.

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