Managing Tax Costs with Index-Based Separate Accounts
Watch this overview of Natixis tax management solutions utilizing customized separate accounts to help maximize after tax returns.
Active Index Advisors® (AIA) brings indexing to the next level, with tax-managed separate accounts that can be customized to address specific investment objectives. Founded in 2002, AIA takes an active approach to passive investing that focuses on the concerns of high net worth investors.
The evolution of indexed investing
Suite of index replication and separate account solutions
All accounts are actively managed to optimize tax loss harvesting while providing beta exposure to an index. This type of solution can help clients mitigate tax liability in their portfolios, minimize capital gains, and plan for future taxable events.Accounts can also be customized, using screens related to:
- Specific GICS sectors, industries, or individual securities
- Investment styles, such as value, dividend or growth tilts
- Environmental, social, and governance (ESG) criteria
Active indexing strategies can help address key issues facing tax-sensitive investors:
- Maximizing after-tax return
- Unwinding concentrated positions
- Transitioning investment accounts
- Estate planning
- Selling a business
Active approach to passive investing
The managers view indexes as raw ingredients that can be adapted to each client’s goals, using a robust set of proprietary tools and techniques. From planning through execution, Active Index Advisors® can provide a customized investment experience with four types of index based-solutions.
Tax-managed equity indexing
The flexibility of the separate account structure allows the portfolio managers to use tax loss harvesting techniques to sell securities that have lost value and bank those losses. The accrued losses can then be used to offset gains in other parts of the client’s portfolio.
- The Core Equity Plus strategies use a multi-factor risk model and optimizer to maximize expected excess return relative to the target index.
- Custom Smart Beta and Factor Tilt strategies – such as high dividend, momentum, value or multi-factor – are designed to offer better risk-adjusted return than respective market cap weighted benchmark.
- Positive ESG screens favor stocks that have a positive ESG rating or are best in class within their sector.
- Negative screens exclude specific securities based on sustainability, faith, or values-based guidelines.
Managed ETF portfolios
- Conservative, Moderate, Aggressive, and Global Equity portfolios
- Conservative and Aggressive Income portfolios
2 Index-based managed accounts are managed to track the performance of a specific benchmark index and hold individual securities owned directly by the investor.
Natixis Advisors, L.P. does not provide tax advice. Please consult with your financial advisor or tax professional.