Follow your own asset allocation strategies or choose one that was created by 3rd party experts. Provide default investment vehicles while offering acceptable alternatives in every asset class. Replacing a model with a direct index requires no separate account setup, no extra signatures and no waiting.
Select from a number of ESG and Religious values constraints provided by MSCI with real time feedback on how a screen influences the current holdings, the investment strategy and the tax implications of taking action.
Specify the minimum cash amount for every client, with the ability to set aside all income from interest and dividends up to a certain amount, typically for withdrawals. Cash maintenance is automated.
With active tax management, clients will get year round tax loss harvesting, short and long term risk adjusted gains deferral, optimized tax lot election, and wash sale avoidance. And if they want, a multi year tax sensitive transition plan.
With the Trade and Transition Analysis reports, Smartleaf compares the scenarios of ignoring all taxes and constraints, ignoring all taxes, following Smartleaf’s tax sensitive recommendations, and following Smartleaf’s tax sensitive recommendations while adhering to a tax budget. This gives real-time feedback to advisors and clients.
The Estimated Taxes Saved or Deferred Report (“ETSoDR”) is an estimate of how much in taxes you save or defer through active tax management for your client, comparing the taxes on realized capital gains of their portfolio relative to the hypothetical alternative where their account was traded exactly to their target model every day.
The report displays tax savings from gains not realized, short-to-long events and net loss harvesting. The report can be shared any day with clients. Last year, Smartleaf users saved or deferred their clients an average of 3.07% of portfolio value in taxes for assets that were actively tax-managed.
