Wedmont Private Capital Expands Direct Indexing Capabilities to Include Custom Benchmarking and ESG Integrations for High-Net-Worth Clients

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Jul 14, 2020, 08:31 ET

PHILADELPHIA, July 14, 2020 /PRNewswire/ -- Wedmont Private Capital (https://wedmont.com), a tech-enabled private wealth manager to high-net-worth (HNW) investors, recently announced the official expansion of its direct indexing services to include custom benchmarking and ESG integration. These new capabilities will allow Wedmont to build more personalized and tax-efficient portfolios for its clients.

Direct indexing is an investment methodology that uses sophisticated risk-modeling software to construct portfolios of individual stocks that maintain similar industry, geographic, and volatility characteristics of a target benchmark, such as the S&P 500. It takes advantage of the normal fluctuation in stock prices to regularly rebalance the portfolio and harvest tax losses from stocks that have declined in value. These tax losses may be used by investors to offset capital gains and reduce tax bills. With its new capabilities, Wedmont is now able to build direct indexed portfolios that integrate multiple benchmarks and ESG considerations, all at no additional cost.

Said Co-Founder Dominic Corabi, "Direct indexing is a marked improvement for investors with significant assets and substantial tax liabilities. Our capabilities in this space are now second to none, and our flat fee structure means that HNW investors no longer have to pay exorbitant fees to access the benefits of direct indexing."

Direct Indexing Without AUM Fees

Other direct indexing providers require investors to pay an assets under management (AUM) fee, often in addition to the AUM fee investors pay their financial advisor. This layering of multiple fees can significantly erode an investor's wealth over time.

Wedmont was founded on the simple premise that HNW investors should not be forced to pay expensive and unnecessary fees for investment management and wealth planning. Wedmont, who advises investors with more than $1,000,000 in investable assets, charges a flat $10,000 annual fee regardless of the size of a portfolio. "Because we don't have to rely on third-party providers to implement our direct indexing strategies, the value proposition of the Wedmont model has never been stronger" commented Corabi.

Direct Indexing Gets Personal

Traditional direct indexing providers have required investors to choose a single benchmark for their portfolios, limiting the investor's ability to design a portfolio that truly meets their specific needs. Wedmont's ability to incorporate multiple benchmarks into a direct indexed portfolio means clients can have more customized and personalized portfolios than ever before. And with the addition of a variety of ESG enhancements, investors now have the ability to make sure their investments reflect their personal values.

Direct Indexing's Many Beneficiaries

Wedmont's unique fee structure and enhanced direct indexing capabilities mean more HNW investors can benefit from direct indexing than ever before.

Investors currently invested in expensive separately managed accounts (SMAs) or a portfolio of individual securities who want to transition to a lower cost and more tax-efficient portfolio.
Retirees who wish to reduce the risk of their portfolios while minimizing capital gains taxes.
Investors who are looking to implement a diversified allocation in a single investment account without the use of expensive funds.
Investors who want their portfolios to include or exclude certain industries, geographies, or companies to reflect their personal values.
Those seeking to diversify out of a concentrated stock position.

About Wedmont Private Capital

Founded by Vanguard and Credit Suisse alums, Wedmont is a private wealth management firm dedicated to changing how high-net-worth investors receive and pay for sophisticated financial advice. To learn more visit www.wedmont.com.

Media Contact:
James Pelletier, Co-Founder
610-885-8200 x115
[email protected]

SOURCE Wedmont Private Capital