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September 18, 2018

Columbia Threadneedle unveils tax-efficient equity portfolios

Columbia Threadneedle Investments has introduced a range of equity separately managed account strategies, which will focus on tax efficiency.

The new Columbia Tax Efficient Portfolios (TEP) include three core strategies, namely US Large Cap, US All Cap, and International ADR that will track the S&P 500 Index, S&P 1500 Index, and the BoNY Classic ADR Index, respectively.

The portfolios, available at a minimum investment of $250,000, also offer further customisation to meet the unique beta and after-tax alpha needs of investors.

Columbia Threadneedle head of US product Dan Beckman said: “With this new offering, we’re excited to bring our 20-plus years of experience to a broader set of advisers and investors. This demonstrates our focus on bringing forward differentiated capabilities aligned with the critical needs of our clients.”

The vehicles will be managed by Columbia Threadneedle head of the systematic portfolio solutions team Michael Fulginiti.

“Taxable investors and their advisers, even sophisticated ones, often overlook or ignore a significant factor that affects wealth accumulation – tax friction. Regardless of investment performance, over time tax friction can significantly erode investment returns. For those investors with significant assets and long-term investment horizons, TEP can be a valuable core or component of a portfolio that will help minimise tax drag,” Fulginiti stated.

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