Case Studies

Optimizing For Tax-Aware Portfolios

Client Type:

Wealth Management

AUM:

USD 250 billion


The Need

A scalable, tax-aware optimization solution that could handle complex rebalancing problems and efficiently rebalance hundreds of thousands of taxable accounts as well as being able to perform very high touch and customizable tax-efficient optimizations for larger high net worth clients.

The Challenge

The rise of direct indexing and unrelenting fee pressures are just two of the challenges that wealth managers face today. In order to be competitive in this environment, our client wanted to actively build and rebalance portfolios in a more cost-efficient and tax-efficient way. The right solution would be able to scale – to not only satisfy the custom requirements of their individual clients – but for other mid-tier and smaller clients as well.

The Solution

Axioma Portfolio OptimizerTM has built-in tax-aware features that made it perfect for the client’s needs. With a flexible number of specific objectives and constraints, the Axioma Portfolio Optimizer can handle all different types of strategies and can do this across multiple portfolios. For this specific instance, the main benefits included a consultative approach from our experts in optimization research, technology solutions and product specialists teams as it related to scaling tax-aware strategies. We were able to not only integrate Axioma Portfolio Optimizer into their workflow, but we also enhanced their process by creating templates for each client workflow to accommodate for the various client journeys into their program.

The Qontigo Advantage

In-built tax-aware approach

Rather than having to build a bespoke solution, Axioma Portfolio Optimizer is ready to go with tax-aware features and a powerful multi-optimization module

Sophisticated optimizer

Can easily manage the transition of an advisory program or Multi-Family account by reviewing all the accounts under one tax ID with cointegrating factors like wash-sales

Adaptability of API

Our plug-and-play technology allows easy integration into existing workflows, without the need to uproot existing legacy systems – resulting in cost efficiencies

Scalability of API

Automate and scale tax optimization and reporting analytics and tax-related needs from hundreds to millions to accounts

Flexibility

Axioma Portfolio Optimizer is not limited to only proprietary models, but is able to incorporate third party transaction cost models

Risk models

Equity, fixed income and multi-asset class models provide the most comprehensive analysis to make more informed investment decisions

Axioma Products

Scale and automate your tax-managed investment strategy

Qontigo’s Tax-Managed Investing Technology And Analytics Solution

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