Watch our short demo with SAM’s co-founder and President, Jerry Michael, and see the onboarding and customization of a new client’s tax-managed account. We’ll replace an ETF with a direct index, add a tobacco screen, a security constraint, custom cash management settings, and then set up a multi-year tax-sensitive transition.
All in about six minutes.
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.
ESG & Religious Values
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, SAM compares the scenarios of 1) ignoring all taxes and constraints, 2) ignoring all taxes, but obeying constraints, 3) following SAM’s tax-sensitive and constraint-compliant recommendations, and 4) following SAM’s tax-sensitive and constraint-compliant recommendations while adhering to a tax budget. This gives real-time feedback to advisors and clients.
Taxes Saved Report
The Estimated Taxes Saved or Deferred Report (“ETSoD Report”) shows you the amount of taxes SAM has saved or deferred through SAM’s active tax management. The ETSoD Report is calculated daily for each account and is accessible through the SAM Advisor Portal. The report is an estimate created by comparing the taxes of the trades proposed by SAM’s trade generation system relative to the hypothetical alternative of trading the account exactly to its target model every day. The calculation includes gains not realized, short-to-long events and net loss harvesting.
Last year, for assets that SAM tax managed, SAM saved or deferred an average of 2.86% of portfolio value in taxes.
View a sample copy here for important disclosures.
About the Advisor Portal
Smartleaf Asset Management provides investor-facing advisors with a dedicated portal for setting up accounts, entering customization and tax management preferences, and submitting a client's cash-withdrawal request. As the advisor sets up the portfolio, the portal gives them and their clients real-time feedback on the tax and risk implications of their customization choices, helping clients make informed decisions. For example, if you add a social screen, the portal will tell you how much of the current portfolio would be liquidated and the estimated tax consequences. And, for new accounts, the portal will, in real time, show you proposed first trades and provide you with a hypothetical projection of a multi-year tax-optimized transition plan.