Improve client outcomes

Delivering measurable and predictable tax alpha

DGS’s tax-management solution helps advisors outperform passive indexes on an after-tax basis using a low-cost, low tracking error approach.

Benchmark Flexibility

Advisors have the ability to target any specific asset class or a combination of asset classes using the most widely available indexes or even lesser known ones.

Index Replication

DGS constructs a portfolio composed of individual stocks that track the target benchmark using sophisticated optimization techniques that minimize tracking error.

Daily Loss Harvesting

All tax-managed accounts are reviewed daily for opportunities to loss harvest at the account level and the individual lot level.

Tax Savings

The losses realized in DGS’s tax-managed strategy can help offset capital gains from other parts of a client’s portfolio resulting in tax savings

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Customize at scale

We build portfolios that are tailored to your firm and personalized for your clients

Direct Indexing
Loss Harvesting
Factor Investing
ESG & Impact
Stock Restrictions
Customizations
Direct Indexing

DGS’s direct indexing solution allows advisors and their clients to incorporate factor strategies, ESG screens and tilts, tax-management. Create a standard firm wide template and, if needed, make changes based on individual client preferences.

Choose domestic, global, or blended indexes as your benchmark
Apply factor tilts using our pre-configured single or multi-factor strategies
Build your own factor strategies or replicate popular ETFs and mutual funds
Screen out companies involved in controversial activities using a range of ESG criteria
Prioritize companies that have desired ESG characteristics
Apply customizations at the security level by restricting ownership or trading activity
Adjust industry and country level exposure based on individual client preferences
Incorporate Tax Management

Daily loss harvesting is just one part of our powerful tax management overlay. Use a firm-wide loss harvesting threshold and, if needed, adjust it to match a clients' unique tax needs. Set annual capital gain budgets for accounts that need to diversify out of concentrated stock positions or target capital gains during low-income years. Set client level capital gains tax rates to see how much money they've saved from our active tax management.

Implement Factor Strategies

Replicate the factor exposures of your existing fund/ETF portfolios or pick from our suite of robustly constructed multi-factor strategies. For advisors looking to build a custom strategy, choose the factors and level of exposures that work best for your firm or for a specific client.

Integrate ESG Considerations

Our extensive and fully customizable ESG menu enables advisors to build portfolios that truly reflect their client's values. Screen out companies that are involved in certain business activities, reduce a portfolio's overall carbon footprint, or invest more in companies that promote sustainable agriculture - go beyond off-the-shelf ETF products by using any combination of available negative screens and positive tilts.

Negative Screens - Business Involvement
Remove companies that earn revenue from certain activities
Energy
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Environment & Ecology
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Values
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Weapons & Military
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Health
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Apply Position Level Customizations

Individual stocks can be restricted from being purchased, sold, or held to match the client's personal preferences or to comply with their regulatory requirements.

Customize Industry and Country Level Exposures

Individual stocks can be restricted from being purchased, sold, or held to match the client's personal preferences or to comply with their regulatory requirements.

Client Specific Tax Management

No two clients are the same and neither are there tax situations. Use DGS's standard tax management overlay and make adjustments to meet specific client needs. From the ability to mandate a specific loss harvesting threshold to setting capital gain budgets over a multi-year horizon, advisors can have complete control over the tax management process.

Convert More Prospects

Client accounts with significant unrealized gains are hard for most advisors to transition into the target asset allocation or the desired investment strategy without a substantial tax bill. DGS's intuitive transition analysis helps advisors win new business by allowing them to show how they could save the client hundreds of thousands of dollars in taxes at the start of the relationship.

Build Around Legacy Positions

Managing around concentrated stock positions has never been easier. With the ability to fund accounts with cash, stocks, or ETFs, DGS can optimize the rest of the portfolio to complement the concentrated position's country, industry, and factor exposures to increase diversification and reduce expected tracking error.

Optimize Client Donations

Combining DGS's loss harvesting with charitable gifting can be a potent tool for advisors and their clients. DGS identifies highly appreciated stock positions that increase tax benefits in the short term and reduce the tax burden in the long run without compromising the overall portfolio strategy.

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The Power of Tax Management

Compound the benefits of tax savings

Market Return

Stock Volatility

Time Period

Initial Investment
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Assumptions:
Intial portfolio value: $100,000
Losses harvested per year: $3,000
Ordinary Tax rate on realized losses: 32%
Capital Gains Tax rate on recovery gains:15%
Portfolio growth rate: 6%
After-Tax Value With Reinvestment
After-Tax Value With No Tax-Loss Harvesting
After-Tax Value Without Reinvestment
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DGS is a direct indexing platform that is built specifically for independent RIAs to help improve outcomes for their clients.
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This material is provided for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are subject to change at any time without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations.
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The information contained herein does not constitute tax advice, and cannot be used by any person to avoid tax penalties that may be imposed under the Internal Revenue Code. Each person should consult an independent tax advisor about his/her individual situation before investing in any investment strategy.

All investing is subject to risk, including possible loss of principal.

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