Direct indexing solutions for tax-efficient diversification

Kevin Maeda, Chief Investment Officer, Direct Indexing, Natixis Investment Managers Solutions, presents a tax-efficient solution for investors who need to diversify their concentrated stock holdings.

• Having too much invested in a small number of holdings exposes investors to the risk that one stock could suddenly wipe out their wealth.
• Some investors drag their feet on diversifying their concentrated holdings because of concerns about capital gains taxes.
• Active Index Advisors^® uses several strategies that can help unwind large stock positions and mitigate the tax consequences, based on investor priorities.
• This approach provides the benefits of reducing the tax burden of selling appreciated shares and building greater diversification into the overall portfolio.