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After-Tax Alpha – The cumulative value of realized losses in a portfolio in consideration of your tax rate(s). It can be viewed either as a percentage of the value of the portfolio or an absolute value.

Algorithm – An algorithm is rules-based process created to accomplish a task in a certain number of steps.

Alpha – Commonly used as a measure of risk-adjusted excess return generated by an investment relative to a benchmark index or market. Sometimes referred to as Traditional Alpha

Attribute – A characteristic of a security or group of securities used to help understand its past or future outcome.

Benchmark – the standard against which the performance of an investment is measured. A benchmark is usually an index, such as the S&P 500, or the Barclays Capital U.S. Aggregate Bond.

Creation/Redemption Process – The process in which shares of an ETF are increased or decreased.

Divergence – a measure of dissimilarity between two or more securities.

ESG Investing – Environmental, Social, and Governance investing, is an investment strategy that to invests in a company or fund containing companies that claim awareness of, or targets the advancement of, ESG concerns. Also known as socially responsible investing.

Exchange-Traded Fund (ETF) – a basket of securities within a fund wrapper that trades on an exchange. An ETF may be designed to track an index, the price of a commodity, or may be actively managed.

Industry, or Industry Group– A sub-segment of a sector (see below) in which business share similarities in products or services.

Loss Capture (process) – The process of selling and realizing a loss in a security that is trading at a lower price than its original purchase price. Also known as loss harvesting or tax loss harvesting.

Loss Capture (value) – The value of a realized loss. It can be viewed either as a percentage of the value of the portfolio or an absolute value. Also known as tax alpha.

Loss Capture Opportunity – Expressed as a percentage, the maximum available loss of an individual security or group of securities such as an index.

Loss Capture Rate – Expressed as a percentage, the difference between the value of a realized loss and the available loss of an individual security or group of securities. The capture rate is calculated by dividing the realized losses by the loss capture opportunity.

Loss Capture per Trade – Expressed in basis points, it represents the average loss capture for each swap transaction. Loss Capture per Trade is calculated by dividing the total percentage of losses captured by the number of swaps.

Loss Capture Overlay – A management process designed to provide the additional benefit of loss harvesting to an existing strategy or portfolio.

Loss Harvesting Lifecycle – The estimated maximum timeframe during which losses can be captured in a portfolio.

Maximum Drawdown – Is the maximum loss from a peak to a trough of a portfolio before a new peak is attained.

Maximum Drawdown from Start – Is the maximum loss from the initial investment value of a portfolio.

Optimization – An asset management methodology whose goal is to own the attributes and outcomes of a portfolio or benchmark while holding only a subset of the securities in the portfolio or benchmark.

Sampling – An asset management methodology whose goal is to own the attributes and outcomes of a portfolio or benchmark while holding a meaningfully smaller subset of the securities in the portfolio or benchmark.

Sector – A sub-segment of a sector (see below) in which business share similarities in products or services.

SmartCapture –  A Green Harvest Asset Management proprietary process created to estimate the optimum loss capture price point thereby maximizing loss capture opportunities.

Swap – The process in which one ETF or other security is sold and another similar security is immediately purchased. This process was designed to provide exposure to the market at all times

Swap Candidate – A swap candidate is an ETF selected to replace an existing holding, likely a similar ETF. An optimum swap candidate provides similar return and volatility attributes to the initial holding.

Tax Alpha – The cumulative value of realized losses in a portfolio. It can be viewed either as a percentage of the value of the portfolio or an absolute value.

Tax-Loss Harvesting (TLH) or Loss Harvesting – The process of selling and realizing a loss in a security that is trading at a lower price than its original purchase price. Also known as loss capture.

Traditional Alpha – Commonly used as a measure of risk-adjusted excess return generated by an investment relative to a benchmark index or market. Sometimes referred to as Traditional Alpha.

Transition – The process of changing one investment strategy to another strategy. Green Harvest provides a tax-sensitive version of this approach.

Volatility – The change in value of a security of portfolio of securities. In finance, this is a statistic can be measured on an absolute basis (standard deviation) or a relative basis (Beta).