Direct Indexing Solutions for Tax-Efficient Diversification

Learn how a direct indexing strategy can help control the tax impact of diversifying a concentrated stock position.

Kevin Maeda, Chief Investment Officer of Active Index Advisors®, presents a tax-efficient solution for investors who need to diversify their concentrated stock holdings.

  • Having too much invested in a small number of holdings exposes investors to the risk that one stock could suddenly wipe out their wealth.
  • Some investors drag their feet on diversifying their concentrated holdings because of concerns about capital gains taxes.
  • Active Index Advisors® uses several strategies that can help unwind large stock positions and mitigate the tax consequences, based on investor priorities.
  • This approach provides the benefits of reducing the tax burden of selling appreciated shares and building greater diversification into the overall portfolio.
CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.

Diversification does not guarantee a profit or protect against a loss.

All investing involves risk, including the risk of loss.

The views and opinions expressed may change based on market and other conditions. This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary.

Natixis Investment Managers does not provide tax or legal advice.  Please consult with a tax or legal professional prior to making any investment decisions.

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