Green Harvest Asset Management’s Core Index Plus U.S. Equity – Institutional offers investors access to a managed portfolio of passive Exchange Traded Funds (ETFs) designed to provide domestic equity exposure closely aligned with the S&P500. This strategy employs Green Harvest’s advanced SmartCapture discipline which is an active, proprietary process designed to capture tax benefits with a focus on minimizing tracking error and maximizing after-tax returns.
ETF Selection Process
14 passive ETFs identified for potential inclusion out of universe of 47 ETFs (as of 12/31/2018) based on the following criteria:
• Long term holding cost
• Estimated trading costs and liquidity considerations
• Index methodology and market exposure
• ETF management quality
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This tax efficient 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.
• Optimize ability for portfolios to achieve on-going tax benefit capture
Portfolio Characteristics (as of 12/31/18)
|Dividend Yield (%)||2.45*|
|Beta (Since Inception)||1.04|
|Tracking Error (Since Inception)||1.11|
|Market-Cap Breakdown (%)|
|*Dividend yield of portfolio ETFs|
Performance and Loss Capture (through 12/31/18)
|Green Harvest Core Index Plus U.S. Equity - Institutional (Gross)||13.69%||13.69%||23.62%|
|Green Harvest Core Index Plus U.S. Equity - Institutional (Net)||13.58%||13.58%||22.64%|
|S&P 500® Index||13.65%||13.65%||24.82%|
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. Portfolio, performance and loss capture statistics are inclusive of US Equity and US Equity Enhanced Strategies. Loss Capture statistics reflect simple averages of all accounts in each composite. “% of Loss Capture” equals simple average of cumulative Realized Losses for each account since initial allocation, divided by initial account values. Realized Losses obtained from custodian.
As of 9/30/2018, this composite consisted of one account. Although there are multiple accounts following this mandate, only 1 account qualified under strict GIPS compliance guidelines.
Reasons to harvest capital losses, sources of capital gains and the suggestion that mutual funds distribute capital gains are for example purposes only and not meant to be tax, estate planning or investment advice in any form or for any specific client.
All performance and estimates of strategy performance, after tax alpha, after tax alpha opportunities and other performance figures are derived from data provided from multiple third-party sources. All estimates were created with the benefit of hindsight and may not be achieved in a live account. The data received by GHAM is unaudited and its reliability and accuracy is not guaranteed.
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. Past performance and volatility figures should not be relied upon as an indicator of future performance or volatility.