Tax Management comes in many forms in portfolios. 

1929

​Although exact origination is debated based on structure, mutual funds were first used in the 1920’s. Massachusetts Investors Trust (MFS) began in 1924 but did not include stocks and bonds.  The Wellington Fund originated in 1929 and is widely believed to be the first public open-ended stock/bond mutual fund.

1993

In the 1990's, ETF's came to market.  Through their redemption process they are able to keep the basis low for capital gains in the portfolio, but are otherwise limited because their investors don't own the individual stocks.  ​

 2000

The next generation of tax management is ​Direct Index separately managed accounts.  It is the most effective way to target tax management in an equity portfolio.

 Present & Beyond

Due to advances in technology and reductions in transaction costs and other frictions, Direct Indexing has grown into a much more useful tool for tax management and other benefits.

​Tax Alpha.

• ​Tax management techniques target over 1% in after-tax excess returns, commonly called "Tax Alpha"
• Decades of academic research has been published on this topic
• Tax Alpha is a complicated term with misleading implications.  Just know that losses harvested reduce the tax bill your clients pay at the end of the year

​Tax Alpha.

• ​Tax management techniques target over 1% in after-tax excess returns, commonly called "Tax Alpha"
• Decades of academic research has been published on this topic
• Tax Alpha is a complicated term with misleading implications.  Just know that losses harvested reduce the tax bill your clients pay at the end of the year