Tax Management
Managing Tax-Sensitive Portfolios around After-Tax Return
We manage taxable portfolios against client-defined after-tax objectives, incorporating tax consequences into security-level and portfolio-level investment decisions.
Portfolio Fit
Coordinate Tax Decisions across Institutional Portfolios
We believe the appropriate measure of performance for a taxable portfolio is the after-tax return rather than the pre-tax return. Our approach is commonly referred to as a direct indexing solution, customizable for tax-sensitive or accounting-sensitive objectives, and is intended for Nuclear Decommissioning Trusts, insurers and other taxable institutions seeking to increase loss realization opportunities or operate within defined gain and loss limits. We work across mandates to coordinate gain and loss realization, dividend and interest management, turnover and applicable state and local tax treatment.
Our tax management capabilities include:
Loss Harvesting
Identifying opportunities to realize losses that offset capital gains inside and outside the portfolio, without materially altering intended market exposure.
Gain and Loss Management
Operating within defined gain and loss limits and deferring gain realization where consistent with investment objectives.
Turnover Management
Limiting unnecessary gain realization while maintaining benchmark alignment and portfolio diversification.
Dividend and Interest Management
Managing holding periods and income timing to optimize tax treatment across applicable rates and jurisdictions.
Multi-Manager Coordination
Reconciling activity across managers, custodians and outside accounts to identify wash-sale exposure and coordinate after-tax results at the portfolio level.
Tax Management Perspectives
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Why NISA
Our Distinguished Approach
We partner with clients to build tailored solutions in pursuit of unique goals. Our style seeks consistent outcomes with high-quality, risk-adjusted returns.
Authentic Alpha
Actively managing specialized strategies across asset classes and markets, emphasizing diversification and proven processes that strive to deliver consistently high information ratios.
Beta Optimization
Capturing targeted market exposures efficiently, minimizing uncompensated risks and identifying opportunities created by structural gaps in market conditions.
Strategic Partnership
Cultivating enduring partnerships that reflect a deep understanding of client objectives with portfolios designed to deliver strategic outcomes.
Partner With NISA
Discuss Your Portfolio Objectives with Us
Portfolio losses are realized with the assumption that the client will use these losses to offset gains. To the extent the client does not have gains available to offset in the current period, the value of the tax benefit of such losses will be less than reported.
NISA Investment Advisors, LLC does not purport to and does not, in any fashion, provide tax, accounting, actuarial, recordkeeping, legal, broker/dealer or any related services. You should consult your advisors with respect to these areas and the material presented herein.