Solutions & Insights
Seeks to deliver improved after-tax returns through tax-loss harvesting
Seeks to replicate active strategies that are optimized for taxable investors
Seeks to reflect each client’s social, environmental, and governance values
Greater flexibility, better outcomes
Benefits of an Aperio personalized, tax-optimized SMA
- Tax alpha: Aim to increase after-tax returns with advanced tax-loss harvesting.
- In-kind transitions: Fund a new SMA while minimizing unnecessary tax costs.
- Personalization: Tailor a portfolio to each investor’s needs, preferences, and values.
- Future flexibility: Make tax-efficient strategy changes, deposits, and withdrawals.
After-tax performance is never an afterthought
After-tax return is what truly matters to taxable investors. Aperio’s time-tested tax-loss harvesting and other tax economics techniques may enhance after-tax returns across your client’s entire equity portfolio. Ask us for more details.
We precisely tailor portfolios around five dimensions. The options below are just the beginning.
- Market exposure - From standard indexes to blended benchmarks for custom exposure.
- Tax management - From custom levels of tax-loss harvesting to other tax economics techniques aiming to generate tax alpha.
- Values-aligned investing (ESG) - From personal values to a perfectly aligned portfolio through granular tilts, exclusions, and shareholder engagement.
- Factor tilts - From traditional factors such as Value and Momentum to fully custom tilts.
- Risk management - From minimized tracking error to sophisticated volatility control.
Developing Each Client’s Optimal Solution
We start by asking questions to understand each client’s priorities. We explain the trade-offs between a client’s tax, risk, and values objectives so advisors can choose an optimal investment solution for the client.
We then construct a portfolio to track client-selected indexes or blended benchmarks, integrating tax management, targeted factor tilts, and/or social screening strategies. Throughout the process, we strive to reduce friction costs, ranging from fees to trades to the efficiency of our internal operations.
We continuously pursue cutting-edge applied research in Active Tax Management, Factor Tilts, and Values-Aligned Investing to test new ideas and reveal insights that help improve our investment processes and consulting capabilities.
Rely on experienced portfolio managers to deploy our scalable SMA engine, which encapsulates more than two decades of experience, to rebalance a vast number of accounts, with the highest degree of customization.
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This material is provided for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are subject to change at any time without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations.
This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns, and proposed or expected portfolio composition. Moreover, any historical performance information of other investment vehicles or composite accounts managed by BlackRock, Inc. and/or its subsidiaries (together, “BlackRock”) included in this material is presented by way of example only. No representation is made that any performance presented will be achieved, or that every assumption made in achieving, calculating or presenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way of example. Past performance is no guarantee of future results.
The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy.