Natixis Investment Managers Solutions Direct Indexing provides fully customizable separately managed accounts (SMAs) that seek to track an index before taxes and outperform it after taxes. These SMA portfolios can be customized for specific tax or other investment strategies.
Why direct indexing – 5 investor applications
Maximize tax-efficient investing
Accounts use active tax loss harvesting, selling securities that have lost value to offset taxes on capital gains.
Transition investment accounts
Accounts can accept securities in-kind to minimize the tax consequences of moving assets to a new broker or firm.
Offset future capital gains
Investment losses accrued can be carried forward to offset capital gains in future years.
Unwind concentrated positions
Accounts can accommodate existing equity positions, using investment strategies that involve selling shares gradually to minimize capital gain taxes.
Customize a portfolio
Portfolios, guided by active investment management, can prioritize or exclude specific sectors or securities to align with investor values or diversification goals.
Resources
To learn more and see case studies, download our case studies:
Direct indexing SMAs are the most tax-efficient way to index
Specialized investment portfolios
Sustainable/ESG indexing
Our proprietary methodology can apply environmental, social and governance (ESG) factors to create personalized indexes. Positive screening favors stocks with positive ESG ratings or best-in-class within sector. Negative screening excludes specific securities or sectors based on an investor's preferences.
Racial equity indexing
Designed to track the S&P 500® index reasonably closely pre-tax, but with a deliberate focus on racial equity and justice. Invests in companies that are leaders in diversity, equity and inclusion, and avoids companies that cause, contribute to, exploit or profit from racial injustice.
Investor education
Portfolio construction
Direct indexing solutions for tax-efficient diversification
Learn how a direct indexing strategy can help control the tax impact of diversifying a concentrated stock position.
Portfolio construction
Generate better after-tax returns with direct indexing
Learn why direct indexing with a separately managed account (SMA) is more tax-efficient than an index fund or ETF.
Portfolio construction
Tax-efficient portfolio transitions using direct indexing
Discover how direct indexing can help minimize the tax consequences of transitioning portfolio assets to a new account.
Portfolio construction
Create customized portfolios using direct indexing
See how index portfolios can be customized for ESG (environmental, social, and governance) or strategic investment goals using active screening techniques.
Related insights
Tax management
Tax management update – Q3 2024
While markets hit new highs, pockets of volatility provided opportunity for tax loss harvesting for direct indexing SMAs.
Tax management
Tax management update – Q2 2024
Equity markets rose in the first half of 2024, but there were still opportunities for tax loss harvesting in SMA portfolios.
Tax management
Tax strategy: Donate appreciated stock
Donating appreciated securities to a charity can have significant tax advantages – but you need to follow the rules.
Tax management
Direct indexing: Checking the box
An in-depth analysis of how screening out companies based on personal values may affect returns on customized index portfolios.
Want to learn more?
Call 800-862-4863 or schedule an in-person or virtual meeting.
A tax liability is the total amount of tax debt owed by an individual, corporation or other entity to a taxing authority.
Capital gain is a rise in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price.
A portfolio tilt is an investment strategy that overweights a particular investment style.
Natixis Advisors, LLC does not provide tax advice. Please consult with your financial advisor or tax professional.
Investing involves risk, including the risk of loss.
Sustainable investing focuses on investments in companies that relate to certain sustainable development themes and demonstrate adherence to environmental, social and governance (ESG) practices; therefore, a portfolio’s universe of investments may be reduced. It may sell a security when it could be disadvantageous to do so or forgo opportunities in certain companies, industries, sectors or countries. This could have a negative impact on performance depending on whether such investments are in or out of favor.
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