Description
An overview of tax-aware solutions available to taxable clients including various approaches to tax loss harvesting. The speaker will provide an introduction to a long/short approach to tax loss harvesting and provide a contrast of pros and cons of the various approaches. The speaker will also introduce key portfolio management challenges and how a long/short approach to tax loss harvesting in managed accounts may have an impact. These challenges may include ossified long-only tax loss harvesting accounts with elevated levels of tracking error and minimal tax benefit generation, as well as low-basis concentrated positions that may be causing outsized risk in client portfolios.
Learning Objectives
Understand tax-aware solutions for taxable clients: Identify various tax-efficient strategies, with a particular focus on tax loss harvesting approaches.
Evaluate the long/short approach to tax loss harvesting: Gain an understanding of how a long/short approach is applied within managed accounts.
Evaluate pros and cons of different tax loss harvesting approaches: Analyze the strengths and weaknesses of various tax loss harvesting techniques, including the long/short approach.
Recognize key portfolio management challenges: Identify challenges such as ossified long-only tax loss harvesting accounts with high tracking error and limited tax benefits, as well as the outsized risks that low-basis concentrated positions can introduce to client portfolios.
These objectives would guide learners toward understanding the technical aspects and strategic implications of tax-aware investment management.