Powerful Yet Simple

For years, the investment community has looked at investing from two distinct perspectives. These were managed investment strategies for enhanced alpha potential, and passive strategies for tight benchmark correlation and cost control.

Active Investment Advisors offers a third viewpoint. One that takes the wisdom of indexing and combines it with the customization and tax management available ony with separate accounts. The result is powerful…yet simple.

Active

Separately managed accounts offer investors direct ownership of securities unlike the pooled ownership of mutual funds. Direct ownership gives the investors the ability to customize their portfolios to their individual needs and preferences while offering the opportunity to actively manage taxes. Active Investment Advisors uses sophisticated tax-management strategies designed to shelter gains and harvest losses with the goal of increasing after-tax returns.

Indexing

Indexing is a strategy long used by institutional investors as an efficient way to maximize market exposure while managing portfolio risk. Simply put, it is an investment strategy that seeks to match the performance of a particular index by investing in all or a subset of securities within the targeted index. With its Equity Strategies, Active Investment Advisors uses sophisticated proprietary methodologies to build portfolios that seek to provide a pretax return similar to the benchmark selected, consistent with any requested customization and tax management. With its Managed ETF Portfolios, Active provides broad diversification and asset allocation through portfolios using a selection of ETFs.

Active Indexing

Active Investment Advisors combines the benefits of active management with those of indexing, while limiting the drawbacks of both. Using active management techniques allows us to proactively customize accounts and aggressively harvest losses. Using index management techniques allows us to seek benchmark-like pretax returns while providing diversification and risk management.

Unlike pooled vehicles, e.g. mutual funds, investors can benefit from realized losses in the Active separate account while potentially experiencing superior diversification and customization.

Why Active Investment Advisors

Sponsors of separately managed account platforms and the advisors that use these platforms choose Active Investment Advisors for the following reasons:

Diversification and Consistency

Each Active indexing strategy is designed to provide consistent and diversified exposure to its target benchmarks while delivering customization and tax management at the individual account level.

Active Tax Management

One key to building wealth is maximizing after-tax returns – the return after all fees, commissions, expenses, and taxes. After fees, taxes may be the most significant cost to investors. Although Active Investment Advisors index-based strategies are designed to be tax efficient, we further seek to maximize after-tax returns through proactive tax-management strategies such as regular tax-loss harvesting.

Customization

Not all investors are alike…and their portfolios shouldn’t be either. Active Investment Advisors can customize its strategies around an investor’s existing positions, exclusion preferences, or other security and sector exposures. This flexibility allows Active Investment Advisors to manage overall portfolio risk.

Click here to learn more about our index-based solutions.