Green Harvest Asset Management’s Core Index Plus U.S. Equity 50% Hedged Strategy offers investors access to a managed portfolio of passive Exchange Traded Funds (ETFs) designed to provide 50% of the return of the S&P 500® Index. This strategy employs Green Harvest’s advanced SmartCapture discipline, which is an active, proprietary process designed to capture tax benefits with a focus on minimization of tracking error. This tax-beneficial investment strategy seeks to reduce equity market risk and capture tax benefits that may be used to offset capital gains which may improve after-tax performance.
Fact Sheet
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Pre-Tax Composite Performance as of 12/31/20
| 3 month | 1 Year | 3 Year | Inception | |
|---|---|---|---|---|
| Strategy (gross of fees) | 8.09% | 7.85% | - | 7.85% |
| Strategy (net of fees) | 7.93% | 7.20% | - | 7.20% |
| Benchmark | 6.07% | 9.20% | - | 9.20% |
| After-Tax Returns | ||||
| Strategy (gross of fees) | 9.64% | 25.02% | - | 25.02% |
| Strategy (net of fees) | 9.47% | 24.27% | - | 24.27% |
| Benchmark | 5.99% | 8.85% | - | 8.85% |
| Strategy (Gross) - Benchmark | 3.64% | 16.17% | - | 16.17% |
| Strategy (Net) - Benchmark | 3.48% | 15.43% | - | 15.43% |
| Tax Alpha* (Gross) | 1.63% | 17.52% | - | 17.52% |
| Tax Alpha* (Net) | 1.47% | 16.78% | - | 16.78% |
*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.
Initial Anchor Holdings (New Portfolio as of 12/31/20)
| Symbol | ETF | Position Type | % |
|---|---|---|---|
| XLK | Technology Select Sector SPDR® | Long | 27.6 |
| XLV | Health Care Select Sector SPDR® | Long | 13.5 |
| XLY | Consumer Discretionary Select Sector SPDR® | Long | 12.7 |
| XLC | Communication Services Select Sector SPDR® | Long | 10.8 |
| XLF | Financial Select Sector SPDR® | Long | 10.4 |
| XLI | Industrial Select Sector SPDR® | Long | 8.4 |
| XLP | Consumer Staples Select SPDR® | Long | 6.5 |
| XLU | Utilities Select Sector SPDR® | Long | 2.8 |
| XLB | Materials Select Sector SPDR® | Long | 2.6 |
| XLRE | Real Estate Select SPDR® | Long | 2.4 |
| XLE | Energy Select Sector SPDR® | Long | 2.3 |
| SPY | SPDR S&P 500 ETF Trust | Short | -50.0 |
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. It is not possible to invest directly in an index.
GHAM does not provide tax advice. Although GHAM does not employ a Certified Public Accountant on its staff, we have, and continue to work 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.
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.
All estimates of past returns of broad, narrow, sector, country, regional or other indices do not include the impact of advisor fees, unless specifically indicated.
Portfolio Characteristics analytics applies to assets invested in GHAM strategy and their underlying exposures, and excludes any directly held cash or money market balances, which are typically < 0.50% of account value.
All data and conclusions derived from data in this factsheet are unaudited and their reliability and accuracy is not guaranteed.
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