Green Harvest Asset Management’s Core Index Plus Global Equity strategy (benchmark: GHAM Global Equity Index) offers investors access to a passively managed portfolio of passive Exchange Traded Funds (ETFs). This strategy employs Green Harvest’s advanced SmartCapture discipline, which is an active, proprietary process designed to capture tax benefits with a minimization of tracking error. This tax-beneficial strategy seeks to minimize or reduce taxes by capturing capital losses that may be used to offset capital gains which may improve after-tax performance.
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Composite Performance (through 12/31/20)
|3 month||1 Year||3 Year*||Inception*|
|Strategy (gross of fees)||15.01||14.84%||9.73%||12.07%|
|Strategy (net of fees)||14.90%||14.39%||9.29%||11.62%|
|Strategy(gross of fees)||14.86%||24.28%||12.49%||14.24%|
|Strategy (net of fees)||14.75%||23.78%||12.04%||13.79%|
|Strategy (Gross) - Benchmark||0.78%||8.59%||3.03%||2.52%|
|Strategy (Net) - Benchmark||0.67%||8.10%||2.58%||2.06%|
|Tax Alpha** (Gross)||0.16%||10.09%||3.50%||2.97%|
|Tax Alpha** (Net)||0.05%||9.59%||3.05%||2.52%|
**Tax Alpha equals net after-tax excess return minus pre-tax excess return, i.e. the strategy’s After-Tax return vs. After-Tax benchmark minus the strategy’s Pre-Tax return vs. Pre-Tax benchmark.
Growth of $100 (as of 12/31/20)
Initial Anchor Holdings (New Portfolio as of 12/31/20)
|XLK||Technology Select Sector SPDR®||15.6|
|EZU||SPDR EURO STOXX 50 ETF||12.3|
|AAXJ||ISHARES MSCI ALL COUNTRY ASI||11.3|
|XLV||Health Care Select Sector SPDR®||7.6|
|XLY||Consumer Discretionary Select Sector SPDR®||7.2|
|EWJ||ISHARES MSCI JAPAN ETF||7.0|
|XLC||Communication Services Select Sector SPDR®||6.1|
|XLF||Financial Select Sector SPDR®||5.9|
|XLI||Industrial Select Sector SPDR®||4.7|
|FLGB||FRANKLIN FTSE UNITED KINGDOM||3.8|
|XLP||Consumer Staples Select Sector SPDR®||3.7|
|FLSW||ISHARES MSCI SWITZERLAND ETF||3.0|
|EWC||ISHARES MSCI CANADA ETF||2.8|
|FLAU||FRANKLIN FTSE AUSTRALIA ETF||2.0|
|XLU||Utilities Select Sector SPDR®||1.6|
|XLB||Materials Select Sector SPDR®||1.5|
|XLRE||Real Estate Select Sector SPDR®||1.4|
|ILF||ISHARES LATIN AMERICA 40 ETF||1.3|
|XLE||Energy Select Sector SPDR®||1.3|
Performance quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when the portfolio is liquidated. Current performance may be higher or lower than that quoted. Performance of an index is not illustrative of any particular investment and does not include the impact of advisory fees. It is not possible to invest directly in an index.
GHAM does not provide tax advice. GHAM works with outside accounting firms and outside tax counsel that provide ongoing guidance and updates on all relevant tax law. Federal, state and local tax laws are subject to change. GHAM is not responsible for providing clients updates on any changes in tax laws, rules or statutes.
Composite performance calculations based on asset weighted average of all accounts in the strategy.
Although there are multiple accounts investing in a similar Global strategy, only 1 account qualified for inclusion based on the GIPS policies and procedures.
Composite performance calculations based on asset weighted average of all accounts in the strategy. The Strategy’s after-tax returns are calculated using actual before-tax returns that have been adjusted to estimate the benefits of using tax losses harvested to offset capital gains and reinvesting the resulting tax savings in the portfolio. For short-term and long-term capital gains realized in each client account, the after-tax return calculation uses the maximum federal tax rates applicable during the tax years shown, which were 40.8% and 23.8%, respectively. For dividend income received in each account, the estimate assumes the maximum federal tax rate of 40.8% applicable to ordinary income. The after-tax returns are hypothetical and may not reflect clients’ actual after-tax performance due to differences in tax rates and other circumstances. As examples, clients with lower applicable tax rates, capital loss carryforwards or no capital gains outside the portfolio are likely to experience lower levels of after-tax returns. In addition, the tax savings and reinvestment are assumed to occur in the tax year, although tax savings are not available during the tax year, and any reinvestment of such savings would occur following the tax year.
Green Harvest has approximated after-tax returns for the benchmark by increasing the Index’s monthly price returns by its dividend yield after applying a 32.3% tax rate, which assumes that half of dividends are taxed at the 23.8% rate applicable to qualified dividends and the other half at the 40.8% rate for ordinary income. Benchmark after-tax returns are provided for informational purposes only and are not intended as a measure of Green Harvest’s tax alpha compared to the benchmark. Significant differences between the calculation methodologies for Strategy and benchmark after-tax returns limit comparability between the returns. For example, the benchmark returns do not include the after-tax impact of capital gains, and different rates have been applied to dividend income.
Reasons to harvest capital losses, sources of capital gains and the suggestion that mutual funds distribute capital gains are for illustrative purposes only.
The availability of tax alpha is highly dependent upon the initial date and time of investment as well as market direction and security volatility during the investment period. Tax loss harvesting outcomes may vary greatly for clients who invest on different days, weeks, months and all other time periods.
The Core Index Plus Global Equity Strategy composite is compared against the iShares MSCI ACWI ETF. The iShares MSCI ACWI ETF is composed of large- and mid-capitalization developed and emerging market equities.
Portfolio Characteristics analytics applies to assets invested in GHAM strategy and their underlying exposures, and excludes any directly held cash or money market balances.
Initial Anchor Holdings are as of the date stated and are subject to change.
All data and conclusions derived from data in this factsheet are unaudited and their reliability and accuracy is not guaranteed.
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