PGIM Custom Harvest SMAS

As a leader in direct indexing using ETFs, PGIM Custom Harvest offers strategies that seek to provide exposure to client-selected benchmarks while seeking to generate tax alpha

WHY PGIM CUSTOM HARVEST

PGIM Custom Harvest is a leader in the development of tax-beneficial investment strategies using exchange-traded-funds (ETFs) for clients seeking improved after-tax outcomes. Our separately managed accounts (SMAs) seek to provide exposure aligned with a client-selected benchmark while generating tax alpha. These portfolios can be customized to meet individual client needs. 

CUSTOMIZED EXPOSURE

Personalized investment experience and calibrated risk management based on each client’s individual goals, needs, tax situation, and risk profile

SIGNIFICANT TAX BENEFITS

Aim to efficiently generate significant tax benefits in both rising and falling markets with the potential to harvest tax benefits throughout the trading day

FULLY INVESTED STRATEGIES

Full market participation through portfolios of ETFs provides enhanced opportunities for tax loss capture in down markets and appreciation in up markets

SIMPLICITY AND EFFICIENCY

Less complexity and fewer holdings than traditional direct indexers with integrated technology that continually monitors for tax alpha opportunities

BENEFITS OF USING ETFS TO DIRECT INDEXING

Direct indexing typically involves buying the individual stocks that make up an index, in the same weights as the index. Direct indexing can provide greater autonomy, control, and tax advantages over owning an index mutual fund or ETF because investors can sell securities in their portfolios to offset capital gains. For taxable clients, we believe the best way to direct index is through ETFs that are tailored to provide the desired market exposure plus tax benefits. Our active tax management discipline aims to deliver tax efficiency through a loss capture process that is designed to help offset both capital gains within the portfolios and realized gains outside of the portfolios.

TAX-LOSS HARVESTING

Loss harvesting is the process of capturing capital losses in a client portfolio which can be applied against capital gains. The result can be reduced tax exposure and higher after-tax returns. Our proprietary Smart Capture discipline combines benchmark investing and active tax-loss management, providing an opportunity to harvest losses in both up and down markets. This discipline has historically been effective at harvesting losses as the process keeps portfolios fully invested, providing the opportunity for enhanced tax-loss capture and helping to limit tracking error. We can help investors with ongoing tax burdens within their portfolios, as well as from taxable events outside of their portfolios.

SMART CAPTURE INVESTMENT PROCESS

We use a disciplined investment process to provide full exposure to a desired allocation or benchmark while generating tax alpha through customized SMA portfolios of ETFs. Our proprietary Smart Capture Technology identifies, targets, and facilitates efficient trading throughout the market day, using the following steps:

  1. Identify optimal ETFs for each exposure
  2. Construct customized portfolios of ETFs to target desired allocation or benchmark
  3. Determine optimum tax benefit capture trading thresholds
  4. Monitor all ETFs and legacy client positions throughout the day
  5. Harvest tax losses while maintaining full market exposure

Featured Strategies

PGIM Custom Harvest provides innovative, tax-beneficial investment solutions and services to help clients achieve their goals. Our investment strategies are designed to provide investors with broad exposure to the equity and fixed income markets with minimal tracking error while maximizing after-tax returns.

Experienced Investment Team

Robert Holderith is the head of PGIM Custom Harvest (formerly known as Green Harvest Asset Management). Robert joined PGIM Investments in December 2021 and founded Green Harvest in 2017. He was previously president and founder of Emerging Global Advisors, LLC (EGA), the advisor to the EGShares family of ETFs, where he was responsible for all aspects of the formation of the firm including research, portfolio management, product development, index conception and design, technology infrastructure, and sales. Robert has been implementing, structuring, and developing ETFs and related strategies since 1999.

Brian Ahrens is the CIO at PGIM Custom Harvest and continues to serve as the head of Strategic Investment Research Group’s (SIRG) at PGIM Investments. He and his staff focus on investment consulting, portfolio construction, and risk oversight activities. Currently, the team consults on over $200 billion in total assets. Mr. Ahrens is also part of a portfolio management team that manages asset allocation strategies totaling over $80 billion in assets. His responsibilities include asset allocation, portfolio risk management, manager fulfillment, and managing cash flows.  He has been with Prudential for over 30 years. Mr. Ahrens earned his MBA in finance from the Stern School of Business at New York University. He graduated from James Madison University with a double major in finance and German.

Richard Tavis, CFA is portfolio manager at PGIM Custom Harvest. Before joining PGIM Custom Harvest, Mr. Tavis was responsible for SIRG Investment Strategy Team. The Investment Strategy Team focuses on developing market views, providing thought leadership in support of the management of client investment portfolios, and providing proactive advice to SIRG’s clients. Mr. Tavis joined PGIM Investments in October 2003 as an investment manager research analyst. Before the formation of the Investment Strategy Team, he was a member of SIRG’s Portfolio Construction Group. Prior to joining SIRG, Mr. Tavis worked with Chartwell Consulting, an institutional investment consulting firm, primarily providing due diligence on investment management firms to corporate pension plans, endowments, and foundations. Mr. Tavis earned his BS in economics and finance, summa cum laude, from Rider University. He is a Chartered Financial Analyst (CFA) charterholder and a member of the CFA Institute.

Harsh Parikh, PhD is the Director of Investment Research and portfolio manager at PGIM Custom Harvest. Before joining PGIM Custom Harvest, Mr. Parikh was a portfolio manager for two years for SIRG at PGIM Investments, where he was responsible for managing portfolios, enhancing investment processes and help build asset allocation capabilities. Prior to joining SIRG, Mr. Parikh worked as a Principal in the Institutional Advisory & Solutions (IAS) group at PGIM, Inc. Mr. Parikh headed the real assets research program and was also responsible for index-based solutions research. He joined PGIM as an Investment Vice President in April 2015 from BNY Mellon’s Investment Strategy & Solutions Group, where he was a Vice President, Portfolio Manager & Strategist. Mr. Parikh was a co-portfolio manager for BNY Mellon Real Asset Strategy. Prior to that, he worked for GMAC ResCap (Ally Financial), Countrywide Capital Markets (Bank of America) and CMS BondEdge (ICE). Mr. Parikh earned his B.E. degree in Computer Engineering from Gujarat University, his M.S. degree in Computer Science and M.S. degree in Mathematical Finance from the University of Southern California, and his PhD degree in Finance from EDHEC Business School.

Learn More About

4369375