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Tax Loss Harvesting

Loss Harvesting is the process of capturing capital losses in a client portfolio in all market environments. When these losses are applied against capital gains, the result can be higher after-tax returns.

The Green Harvest Difference
Our active tax management approach seeks singular goal is to capture the return of an index while simultaneously harvesting the maximum amount of capital losses and generate tax alpha during all market hours and on all market days. Many tax managed strategies do this only once a year.

Our proprietary SmartCapture discipline combines passive 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. We call this Active Tax Management 2.0.

Exposure to the index while harvesting the green
Below are calendar year returns of the S&P 500® Index and the annual loss harvesting opportunity

Past performance is no guarantee of future results. Source: Bloomberg. For illustrative purposes only. Loss harvesting opportunity is defined as the maximum drawdown over each time period. The above chart shows the calendar year returns and max drawdown for the S&P500. A maximum drawdown is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained. Green Harvest Asset Management did not have a live investor during any of the time periods illustrated above. There is no guarantee that Green Harvest can capture the loss opportunity during any investment period. The availability of tax alpha is highly dependent upon the initial date and time of investments 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 an all other time periods.