Loss harvesting is the process of capturing capital losses in a client portfolio which can be applied against capital gains. The result can be reduced tax exposure and higher after-tax returns. Our proprietary SmartCapture discipline combines benchmark investing and active tax loss management, providing an opportunity to harvest losses in both up and down markets. This discipline is significantly more effective at harvesting losses as the process keeps portfolios fully invested, which allows harvesting of the maximum available loss opportunity and limiting tracking error. Our active tax management discipline delivers tax efficiency three ways:1. We use only low-cost, passive ETFs which are inherently more tax efficient than most mutual funds.2. Our loss capture process can offset capital gains that may be realized within the portfolio.3. Any excess losses may be used to offset realized gains outside the portfolio.