NEW YORK, Aug. 9, 2018 /PRNewswire/ — AllocateRite, a New York FinTech company that provides asset managers with dynamic asset allocations employed through ETF-based investment strategies, today announced a new, proprietary solution to optimizing tax efficiency on an individual-portfolio basis. The new tool allows investment advisers the option to elect AllocateRite’s tax optimization model and select an appropriate tax lot relief methodology on a customer-by customer basis. The goal is to achieve a beneficial tax treatment while maintaining comparable returns for each client’s segregated customer’s portfolio of ETFs.
AllocateRite’s automated smart tax optimization is a departure from traditional tax loss harvesting and potential tax related issues regarding the wash sale rule. The differentiating feature to tax optimization is its integration with its dynamic asset allocation process. This allows the optimization model to modify the monthly portfolio rebalancing while managing the overall risk for the portfolio. This helps improve after-tax performance and reduce transaction costs for the client. All of this is controlled by the Client Advisor and is implemented at their discretion to ensure it meets their own goals and criteria.
“Tax management has a significant impact on a portfolio’s overall return,” said AllocateRite CEO, Bala Shagrithaya. “We realized that we could adapt our technology to give client-advisors more control over tax management and more efficiency in their portfolios.”
Visitors interested in learning more about AllocateRite’s proprietary tax optimization strategies can begin the registration process directly on the website at https://www.allocaterite.com/get-started/.