Active Tax Management

Aperio engineers solutions designed to deliver the lower-cost advantages of indexing strategies alongside a measurable and predictable tax alpha.

Measurable Tax Alpha

Taxes are a constant—they can persistently erode returns if not managed. Any advisor to taxable investors who ignores this effect is willing to accept potentially lower wealth for their clients. Aperio’s strategies for separately managed accounts (SMAs) are designed to generate predictable tax alpha by integrating tax-loss harvesting (TLH) strategies with equity index-tracking portfolios. 

Building and Managing Tax-Efficient Portfolios

Aperio constructs portfolios in separately managed accounts composed of individual stocks that track a target benchmark. Taking advantage of the natural price movements in stocks, we continuously monitor and rebalance portfolios to recognize tax losses from securities that have declined. Realized tax losses can then offset taxable capital gains generated by other assets.

Tax Analysis for Portfolio Consolidation and Charitable Donations

More than half of our accounts start with legacy portfolios. Liquidating these portfolios spread over multiple accounts can often trigger unnecessary taxable events. Aperio can analyze and map out transition strategies to help minimize the tax impact. We can also provide an analysis to maximize the tax benefits of donating securities.

© 2023 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK and APERIO are trademarks of BlackRock, Inc. or its affiliates. Other trademarks are property of their respective owners.

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.