Tax-efficient investing is a well-established strategy in the equity markets but the practice is now gaining wide adoption by managers of fixed income separately managed accounts (SMAs). The potential for rates to trend higher as the Federal Reserve gradually tapers its bond-purchasing program could create the opportunity for an investor to reduce their overall tax payment by harvesting losses in a systematic way while still benefiting from higher reinvestment rates. Since the application of tax management to a bond SMA may still be a novel concept to some investors, this article addresses the benefits of TLH strategies to a bond portfolio on a year-round basis. Read the article now and learn about:
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