With Blackrock's Tax Evaluator tool, quickly identify estimated capital gains distributions, fund performance information, and potential tax loss harvesting opportunities to minimize tax impacts for your clients.
Let’s dive in. There are two popular ways to use Tax Evaluator:
With existing clients – identify potential tax-savings and reinforce your value by showing clients the potential dollar impact of your tax efficient investment strategy.
With prospects – differentiate your proposals by comparing and quantifying the potential tax savings they might experience with your portfolio management approach.
Let’s select a current client’s portfolio to see an analysis.
The first tab is Estimated Capital Gains, where you can see which funds have reported capital gains estimates before the client incurs the tax liability. The tool also highlights the Position Tax Cost and the Day before the record date to help avoid surprises.
The next tab displays the 5-year Historical Capital Gains of investments within the portfolio, broken out annually. This feature helps you reinforce your value, by supporting your regular fund and portfolio due diligence process.
The Total Return & Ranking tab is backed by Morningstar. View your client’s portfolio positions, color coded by a Category Percentage Rank to identify potential underperformers and get a holistic understanding of your funds.
The Tax Loss Harvest tab can help you quickly identify funds that may have available loses and offers alternative investments to consider that may fulfill a reasonably similar position.
Lastly, the Fund Performance and Fees tab provides a granular view into the Mutual Funds, Closed End Funds, Money Market Funds and ETFs your client holds.
Over the long term, taxes can greatly affect portfolio returns, and Tax Evaluator can help you, your prospects, and clients analyze these costs to help make better portfolio decisions.
