Loss Harvesting Amid a Rising Market With Narrow Breadth
PGIM Custom Harvest shares views on the ever-evolving tax-loss harvesting landscape & how direct indexing can help investors capture stronger after-tax returns.
PGIM CUSTOM HARVEST
A separately managed account platform using customized ETF-based direct indexing solutions to seek improved after-tax returns
KEY FACTS
LEADER IN ETF-BASED DIRECT INDEXING
Innovative, tax-beneficial investment solutions and services tailored to each client’s individual goals, needs, tax situation, and risk profile using low-cost, tax-efficient ETFs
PROPRIETARY SMART CAPTURE TECHNOLOGY
Proprietary tax-sensitive software used to identify, target, and facilitate efficient trading throughout the market day, increasing the potential to harvest tax benefits
MULTI-ASSET Experience
A wide range of strategies that seek to provide investors with broad exposure to the equity and fixed income markets with minimal tracking error while maximizing after-tax returns
DEEPLY EXPERIENCED TEAM
Founded by ETF and asset management experts with more than 65 years of aggregate asset management and ETF sponsor experience
OUR STRATEGIES
- U.S. Equity Plus
- Global Equity Plus
- U.S. Equity Plus - 50% Hedged
- High Income Municipal Plus
- Quality Municipal Plus
The After-Tax Advantages of Direct Indexing
Stuart Parker talks to Robert Holderith, Head of PGIM Custom Harvest, about pursuing better after-tax outcomes through direct indexing on The Inside Track.
Tax-Loss Harvesting Helps Limit The Impact Of Ongoing Volatility
Head of PGIM Custom Harvest, Robert Holderith, shares how tax-loss harvesting can help drive long-term wealth management success throughout market cycles.
Alpha is a measure of the investment’s value added based on its beta or market-related risk profile. Tracking error is the difference in actual performance between a portfolio and its corresponding benchmark.
Risks—Investing involves risks. Some investments are riskier than others. The investment return and principal value will fluctuate, and shares, when sold, may be worth more or less than the original cost. Actively managed portfolios may carry additional risks, such as analyses performed cannot always predict outcomes, that the investment techniques applied do not have the expected results, and that external factors can change the course of investment performance. The fees associated with active management may be higher than those associated with passive strategies. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their net asset value (NAV), and are not individually redeemed from the Fund. Shares may only be redeemed directly from the Fund by Authorized Participants in creation units only. You may incur brokerage commissions when buying and selling shares on an exchange or through your financial intermediary, which may reduce returns. Market returns are based upon the closing price or the midpoint of the bid/ask spread, as applicable, at the time when the Fund’s NAV is determined (normally 4:00 p.m. Eastern time), and do not represent the returns you would receive if you traded shares at other times. There can be no guarantee that an active trading market for ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.
The availability of tax alpha is highly dependent upon the initial date and time of investment 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, weeks, months, and all other time periods. A client's tax alpha will depend on the client's individual circumstances, which are outside of PGIM Custom Harvest's knowledge and control.
PGIM Custom Harvest does not provide tax, legal, or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Although PGIM Custom Harvest does not provide tax, legal or accounting advice, we stand ready to assist clients and their advisors in reviewing the relevant tax rules.
SMAs differ from pooled vehicles like mutual funds in that each portfolio is unique to a single account therefore the investment decisions may vary from those made for other accounts. SMAs do not issue registered prospectuses, and the fee structures differ from those normally seen in mutual funds and generally carry higher account investment minimums. Please remember that there are inherent risks involved with investing in the markets, and investments may be worth more or less than initial investment upon redemption. There is no guarantee that the investment managers' objectives will be achieved. Professional money management is not suitable for all investors. Investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.
PGIM Custom Harvest is a registered investment adviser and a Prudential Financial company. © 2023 Prudential Financial, Inc. and its related entities. PGIM Custom Harvest, PGIM Investments, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
Investment Products: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.
For compliance use only 1055222-00003-00