Author: Scott Hohman, CFP®, AIF®

Client Benefits: Enhance Your Investment Strategy with Access to Specific Market Segments and Tax Strategies

In this third installment in our Investment Strategy Series, I want to share an overview of another valuable facet of our new streamlined and enhanced investing strategy: the ability for Resolute clients to benefit from a network of research groups with targeted expertise. (If you’re new to this article series, start with the first article to learn more about our enhanced factor-based investing approach, or check out the second article to learn more about investing in individual stocks and ETFs through SMAs.)

As you’ll see, this third facet of our approach is another opportunity for our clients to customize their portfolios around their personal values and areas of interest. Our clients have access to a wide variety of options such as:

• Emerging technology, innovation, and digital assets
• Impact and values-based investing
• Tax management overlay and loss harvesting to manage capital gains
• Dividend-focused SMA

I’ve said it before, and I’ll say it again – it’s all about helping you put a little more YOU in YOUR portfolio!

In subsequent articles in this series, I’ll be going in-depth on each of the areas of expertise mentioned above. Right now, though, I want to share in brief how Resolute’s clients gain distinct investment strategy advantages through our network of research groups with targeted expertise. Never before have we been able to offer our clients so many ways to tailor their portfolios to their unique goals, interests, and values – and we’re excited about the advantages this brings to today’s investors!

Emerging Technology, Innovation & Digital Assets

If you’ve been interested in new technology trends and crypto, we’ve got you covered through a Managed Account SMA that focuses on disruptive innovations. It’s important to note that this approach invests in companies engaged in emerging technologies along with providing exposure to cryptocurrencies in an indirect manner.

Essentially, it’s a concentrated stock portfolio making large-scale investments in public companies that could be perceived as leaders, enablers, and beneficiaries of disruptive innovation across transforming technology that could potentially change the way the world works. (Pretty exciting, right?)

Impact and Values-Based Investing

More and more investors are interested in aligning their portfolios with their values and convictions, and we’ve made it easy for our clients to do so. We now offer access to Impact Screens that act as portfolio matchmakers. A client need only select from a list of personal conviction screens and the selected criteria will be applied to their individual stock holdings. The screens will automatically exclude companies that are not in alignment with a client’s beliefs.

In addition, ESG portfolios and thematic impact portfolios are available as standalone portfolios. In essence, it’s never been easier for our clients to put their money where their values are. So, if you’ve been interested in impact investing or ESG but worried that it may be too complex, you can rest assured we offer a streamlined and user-friendly process.

Tax Management Overlay and Loss Harvesting

In the second article in this investment strategy series, we went in-depth on the client benefits of investing in individual stocks and ETFs through separately managed accounts (SMAs). When an investor utilizes an SMA, Tax Overlay Services can be added. The goal is to reduce tax exposure, especially short-term gain exposure. The process can be coordinated across multiple SMA managers, as well.

Dividend-Focused SMA

Our strategy is helpful for any investor seeking a lower-volatility strategy in their stock allocation with an emphasis on dividend yield. It’s well-suited for any investor looking to reduce overall downside risk in their stock portfolio.

Are You Looking for These Client Benefits in Your Investment Strategy?

As mentioned above, I’ll be sharing more about each of these interest areas in subsequent articles. However, if you’d like to have a conversation right now about your investment strategy and what Resolute can offer, please get in touch.

We would love the opportunity to answer your questions, learn about your goals, and help you determine whether our newly enhanced investment strategy services can help you achieve them.

How Resolute Clients Gain Exclusive Access to These Emerging Asset Classes

This fourth installment in our Investment Strategy Series will be of particular value to anyone interested in – or even simply curious about – investing in Emerging Technology, Innovation, and Digital Assets. If you’re just jumping into this article series, you can start with the first article to learn more about our enhanced factor-based investing approach, then check out the second article to learn more about investing in individual stocks and ETFs through SMAs and the third installment for how Resolute clients benefit from a network of research groups with targeted expertise.

And speaking of that targeted expertise, as technology continues to evolve, new investment opportunities arise. Resolute clients have access to a Managed Account SMA that focuses on disruptive innovations, and I’d like to share more about this opportunity.

What Does This Investment Opportunity Mean?

Emerging Technologies sometimes referred to as Disruptive Technologies, are defined as tech sector segments that are set to significantly impact the way we live within the next decade. Examples you may already be familiar with are artificial intelligence and cloud computing.

Innovation investing is, essentially, about investing in new ways of doing things. Most often, it includes things like Research and Development (R&D), and it can make businesses and commercial enterprises more efficient, productive, and competitive.

Digital assets include cryptocurrency, which most people are familiar with, but it’s a much broader asset class than that. In fact, a digital asset is any asset that exists in a digital form and includes a right to use. Examples include non-fungible tokens (NFTs) and virtual real estate in the metaverse.

What is a Managed Account SMA Focused on Disruptive Innovations?

As mentioned previously, Resolute clients have access to a Managed Account SMA that focuses on disruptive innovations. It’s a concentrated stock portfolio making large-scale investments in public companies that could be perceived as leaders, enablers, and beneficiaries of disruptive innovation across transforming technology that has the potential to change the way the world works.

Common Themes

Investors interested in this SMA can expect to invest in companies involved in areas like artificial intelligence and cloud computing. Other common themes include companies interested in DNA technologies, energy storage, the increased use of autonomous technology, next-generation internet services, and even technologies that make financial services more efficient.

Although many of these companies are in the tech sector, this approach spans sectors, geographies, and market capitalizations. The focus is on Artificial Intelligence, Autonomous Vehicles, Fintech, DNA Sequencing, Robotics, and 3D Printing.

Associated Risk

It’s important to note that this is a high-risk approach. It is designed for those investors who are willing to accept the associated risks. Sometimes, our clients want to have the ability to hit a home run and are willing to take a high level of risk for that opportunity.

This type of investment is not for every investor. It is best suited for high-net-worth investors as a minor percentage of an overall portfolio.

Do You Have Questions About Emerging Technology, Innovation & Digital Asset Investing?

If you think this Managed Account SMA focused on disruptive innovations might be right for you, we would be happy to answer your questions. This is an exciting area of investing that continues to evolve, and we’re pleased to be able to offer such access to this opportunity for Resolute clients.

If you’re already a client, please feel free to reach out to your Resolute advisor for further discussion. If you’re not yet a client and you’d like to discuss our services, please reach out to schedule an initial call. We look forward to sharing more information about our recently enhanced investment strategy and learning whether Resolute can help you meet your goals.

Opportunities to Align Your Money with Your Values

In this fifth installment in our Investment Strategy Series, I’m pleased to talk about an area of investing that has been growing in leaps and bounds in recent years: impact investing and values-based investing. Resolute’s enhanced investing strategy includes a valuable opportunity for our clients to align their portfolios with their personal convictions – and it’s an easier process than you might think.

If you need to get caught up on this article series and the other elements of our enhanced investing strategy, you can do so here:

• Which is Sturdier: A Three-Legged Stool or a Four-Legged Chair?
• Investing in Individual Stocks and ETFs Through Separately Managed Accounts
• How Resolute Clients Benefit from a Network of Research Groups with Targeted Expertise
• Investing in Emerging Technology, Innovation & Digital Assets

Now, let’s get into today’s topic.

There’s a growing trend among individual investors to use their money to create positive change in the world in areas that they find meaningful. For these investors, gone are the days of simply calculating which funds will generate the greatest returns. Instead, impact investors choose where to put their assets based upon their values and convictions, while earning returns in the process, too.

Now, the nuts and bolts of impact investing and values-based investing can seem a bit complex. Though there are some tools available, it can be difficult for investors to make sense of the influx of information about a company’s, say, commitment to reduce fossil fuel use or steps it’s taken toward greater gender equity in the C-suite.

Luckily, Resolute’s clients have access to a user-friendly tool to help them invest in the greater good.

Impact Screens

Our impact investing and values-based investing clients utilize Impact Screens to match their values with their investments by being able to select from a list of personal conviction screens. The selected criteria are then applied to their individual stock holdings to exclude companies that aren’t in alignment with their beliefs. Many of our clients choose value investing as a way of connecting their religious beliefs and/or environmental concerns with their investment portfolio. The beauty of this is that you can select from a menu to customize your portfolio.

ESG Portfolios

As part of this enhanced investment strategy offering, our clients can also choose ESG portfolios as standalone portfolios. ESG stands for Environmental, Social, and Governance.  This one-time niche investment strategy has gone mainstream in recent years, and we offer a simple and efficient way for Resolute clients to begin their ESG journey.

Thematic Impact Portfolios

We also offer the opportunity for our clients to invest in Thematic Impact Portfolios. These are ideal options for those who may want to target owning companies that are trying to create positive impacts (instead of simply excluding companies that they feel have a negative impact) on the environment, social, or governance themes that are important to the client.

A Note on Diversification

It’s important to know that, with each of the above impact investing or values-based investing strategies, we still maintain diversification. We also work closely with portfolio managers to balance client values with existing manager models.

Want to Know More About Impact Investing and Values-Based Investing?

As with each aspect of our enhanced investing strategy, our goal is to help you put more YOU in YOUR portfolio. In this case, we can now better serve our clients who want to use their investment dollars to effect positive change in the world we live in.

If you’re wondering whether impact or values-based investing may be right for you, let’s have a conversation. If you’re an existing Resolute client, please contact your advisor to learn more. And, if you’re not yet a Resolute client, you can schedule an initial discussion to learn more about all of our services. We look forward to hearing from you!

Critical Elements of Your Tax-Smart Portfolio

This article marks the sixth installment in our Investment Strategy Series, where I’ve been introducing each of the valuable elements of our newly enhanced investing strategy for Resolute clients. You can review any of the previous articles in this series through these links:

• Which is Sturdier: A Three-Legged Stool or a Four-Legged Chair?
• Investing in Individual Stocks and ETFs Through Separately Managed Accounts
• How Resolute Clients Benefit from a Network of Research Groups with Targeted Expertise
• Investing in Emerging Technology, Innovation & Digital Assets
• Impact Investing and Values-Based Investing

Today, I’d like to share our offerings related to tax management overlays and tax loss harvesting – critical elements of a tax-smart investment strategy.

What is a tax management overlay?

The vast majority of individual investors are not tax experts, yet managing your tax liabilities is key to a successful investment strategy. Our tax overlay services allow us to protect the integrity of your overall investing plan while better managing your tax exposure – especially short-term gain exposure when Separately Managed Accounts (SMAs) are utilized. For example, we can look for opportunities to harvest unrealized losses in order to off-set gains. This process of tax loss harvesting means you’ll only pay taxes on your net profits – the amount you’ve gained minus the amount you’ve lost – thereby reducing your tax bill and better positioning your portfolio for the future.

The goal of this process is to improve a client’s after-tax returns. Essentially, we enhance returns by minimizing the tax cost related to investment returns.

SEE ALSO: Strategies for Preserving Multigenerational Wealth

How does it work?

With Resolute’s tax management overlays and tax loss harvesting services, you can rely on a smoothly coordinated effort across multiple SMA managers. The process weighs the impact of transactions on taxes against the risk of not complying with the manager’s first-choice recommendation. It actively seeks out opportunities to match gains with losses, or harvesting losses when possible, to off-set prior gains.

In this process, Resolute clients have the ability to establish limits on how much they are willing to recognize in gains by establishing a “tax budget.” Our clients can also request to harvest losses in years where they may be looking for capital gains off-set from events outside the investment account.

Further, the process allows clients to hold onto positions that have gains until they are long-term, so as not to pay the higher tax rates associated with short-term capital gains. An investor can also transfer in low-cost basis stock and have a portfolio built around that stock that is diversified, while the gains are captured over time. This strategy means better managing the tax cost of just selling it all immediately.

Another important benefit? Tax management overlays and lax loss harvesting can also help investors who are trying to manage their total taxable income in order to keep Medicare rates in check.

What do these services mean for our clients?

As with every element of our newly enhanced investment management services, our goal is to allow our clients to better customize their portfolios. Through the use of tax management overlays and lax loss harvesting, we provide an opportunity for what we call “hyper-customization” – the ability to put a little more YOU in YOUR portfolio.

If you’d like to learn more about the services discussed in this article, or any facet of our enhanced investment management strategy, let’s talk. If you’re a Resolute client, reach out to your advisor at any time. And, if you’re not yet a client, schedule an introductory discussion so we can get acquainted.

At Resolute, we believe in helping you regain the personal aspect in your advisory relationship. We look forward to getting to know you and your unique goals, and to answering your questions about our wealth management and investment management services. We offer deep expertise, customized plans, client engagement, and a commitment to providing our clients with confidence in – and ownership of – their respective financial futures. If this sounds like what you may be looking for, reach out today. We look forward to hearing from you!

A Low-Volatility Strategy Focused on Yield

This article marks the seventh and final installment in our Investment Strategy Series, where I’ve been introducing each of the valuable elements of our newly enhanced investing strategy for Resolute clients. If you’d like to review any of the previous articles, you may do so through these links:

• Which is Sturdier: A Three-Legged Stool or a Four-Legged Chair?
• Investing in Individual Stocks and ETFs Through Separately Managed Accounts
• How Resolute Clients Benefit from a Network of Research Groups with Targeted Expertise
• Investing in Emerging Technology, Innovation & Digital Assets
• Impact Investing and Values-Based Investing
• Tax Management Overlays and Tax Loss Harvesting

Today, I’d like to discuss dividend strategy and, specifically, the opportunity to utilize a dividend-focused separately managed account (SMA).

Why Do You Need a Dividend Strategy?

If it’s your dream to retire someday with a steady, passive income, having the right dividend strategy can help you accomplish your goals. Of course, there are multiple ways investors approach dividend investing, and it can be daunting to select the investments in your portfolio that will give you the long-term income you desire. That’s why we’re excited to be offering Resolute clients access to a dividend-focused SMA that takes much of the guesswork out of building your own dividend strategy.

How Does it Work?

The dividend-focused SMA we have partnered with emphasizes holding large-cap stocks as a step to reduce downside risk. This strategy seeks out companies that are perceived to have free cash flow over the next three to five years to support the current dividend.

Traditionally, you might expect this strategy to underperform in strong upward markets, but also to provide more stability during volatile markets.

Is it Right for You?

Our offering is designed for investors who are seeking a lower volatility strategy in their stock allocation, with an emphasis on dividend yield. It is a strategy that is particularly well-suited for those who are looking to reduce the overall downside risk in their stock portfolio or those who are seeking income opportunities while still having the potential for capital appreciation. These investors understand that they are likely owning lower-risk stocks, but they do still own stocks and that carries more risk than fixed-income investments. So, utilizing this dividend strategy can be a fit for those who are comfortable with adding risk by reducing some of the fixed income portions of their portfolio and replacing it with income-producing stocks.

Do You Have Dividend Strategy Questions?

If you’d like to learn more about the services discussed in this article, or any facet of our enhanced investment management strategy, let’s talk. If you’re a Resolute client, reach out to your advisor at any time. And, if you’re not yet a client, schedule an introductory discussion so we can get acquainted.

At Resolute, we believe in helping you regain the personal aspect of your advisory relationship and in helping you better customize your investment portfolio. We look forward to getting to know you and your unique goals, and to answer your questions about dividend strategy or about our wealth management and investment management services. Our professional team offers the depth of experience, customized plans, client engagement, and a commitment to providing our clients with confidence in – and ownership of – their respective financial futures. If this sounds like what you may be looking for, reach out today. We look forward to hearing from you!