We believe structure is one of the most undervalued strategic resources in the industry, and the way most portfolios are managed leaves meaningful value on the table.
Placing your portfolio allocation inside an ETF isn't simply a delivery choice, it's a tax strategy decision. The ETF's in-kind creation and redemption mechanism allows you to rebalance and reallocate holdings without those transactions occurring in individual client accounts. Most strategies generate returns and then surrender a portion of them every year through realized gains, year-end distributions, and the friction of repositioning. Others rely on realizing losses to offset gains, causing effectiveness to decay as complexity increases. The math of compounding is unforgiving: small annual drags become large long term differences. A structure that is tax-aware by design, not as an afterthought, allows the investment philosophy to work the way it was intended.
Implementing a Custom ETF is a nuanced decision, and each firm will have a different set of unique factors to consider. We have designed 2 different paths to explore depending on your unique situation and desired outcomes.
351 Exchange. Potential ability to reposition your existing equity sleeve via Section 351 tax deferred exchange.
Single Ticker. Post-launch, your equity sleeve trades as a single ticker. This significantly streamlines operational efficiency and improves firm overhead.
Proven process. Benefit from the same end-to-end process we completed for our affiliated wealth management firm, using the same architecture, strategy, and process.
Outsourced CIO. You custom design and specify the important characteristics of your asset management program. Your vision becomes a fully outsourced, rules-based investment process that maintains alignment with your foundation.
Guided Advisor as Portfolio Manager. Supports an institutionalized evolution of your firm's unique portfolio management capabilities.
Best of both worlds. Your asset management strategy and insights. Institutional systems and service capabilities. Optimal Tax Asset Management's execution layer support, curated network of expert providers, and custom practice implementation tools.