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Tax Efficiency

A Differentiated Approach to Direct Indexing

Introduction We are big fans of ETFs. But our research shows that investors may see even better after-tax outcomes through direct indexing separately managed accounts (SMAs). The financial industry has also recognized this potential, and the marketing hype has reached a fever pitch. So we yet again must take a skeptical approach as we do […]

April 23, 2024

Funding Private Investment Programs for Taxable Investors

Written by Ben Daly, CFA, CAIA, CFP®, Senior Investment Advisor and Ryan Bachur, CFA, Senior Portfolio Manager For over three generations of professional investment management, rules, guidelines, and heuristics were developed for endowments, foundations, pensions, and other tax-exempt institutions. They became the “law of the land,” ensconced in the investment and finance curricula taught around […]

April 9, 2024

Taxable Investors: You are not dating your portfolio managers. You’re marrying them. Therefore, you need excellence AND persistence.

For taxable investors, it is not enough to get excellent long-term after-tax performance from an investment fund. Persistence – the ability to remain good to excellent through time — matters just as much. Why? The journey matters. If the road is too rocky, investors will lose faith and feel compelled to fire a fund manager. That issue […]

November 7, 2023