Tax-managed Separate Accounts
Model-driven with Sophisticated Trading.
Taxes are inevitable and should not be feared. The key is to manage taxes strategically and proactively, beginning with portfolio design and diversification. How taxes are managed can have significant positive influence over your portfolio's net return performance over the long-term.
Mercer Advisors' strategic approach to tax management is both sophisticated and efficient. We implement an aggressive balance of tax-loss harvesting and asset swapping, at both the fund and individual stock level, in order to maximize the tax-managed benefits for our clients' portfolios. This advanced level of trading allows our clients to benefit from their tax losses.
Quantitative funds are used because they are model-driven, ensure asset class exposure, maximize diversification and their level of sophistication adds true value to a portfolio. Further, asset classes are aggregated to maximize the opportunity set of our tax-managed separate accounts.
A powerful investment strategy for high net-worth individuals with highly concentrated holdings
Transforming a high-risk, concentrated portfolio into a strategically diversified portfolio that optimizes return and minimizes risk can be daunting, even for the savvy investor. However, in order to realize true wealth — wealth without excessive risk, this evolution must take place.
Our management strategy for a client’s highly concentrated portfolio begins with a transition plan to sell the concentrated holdings over a planned period of time. Asset classes, such as value and growth stocks, are aggregated during the transition period in order to maximize the opportunities to realize losses among individual stocks. Then, using aggressive tax-loss harvesting, we swap stocks and use the losses to minimize the portfolio’s tax exposure.
Source: Parametric Portfolio Associates LLC
Mercer Global Advisors Inc. is registered with the Securities and Exchange Commission and delivers all investment-related services. Mercer Advisors Inc. is the parent company of Mercer Global Advisors Inc. and is not involved with investment services. Forbes and Investment News rankings are for Mercer Global Advisors Inc.
