Maximize Efficiency with Scalable Tax-Loss Harvesting Tools

Tax-loss harvesting can create meaningful value for investors but executing it efficiently across hundreds or thousands of accounts is challenging. Investment teams must balance tax objectives, trading efficiency, portfolio constraints, and regulatory considerations, all while working within a limited timeframe.

That’s why firms are moving beyond spreadsheets and disconnected workflows in favor of a more integrated approach. Investortools supports the entire tax-loss harvesting lifecycle, enabling clients to move from planning to execution and reinvestment at scale.

Set Targets and Monitor Progress

A successful tax-loss harvesting program starts with clearly defined objectives. Whether the goal is offsetting realized gains, generating losses for future use, or meeting client-specific tax targets, firms need visibility into progress across accounts.

Our tools allow investment teams to establish capital loss targets and track progress throughout the year. By centralizing requests and monitoring activity in one place, teams can quickly assess where opportunities exist, prioritize action, and ensure portfolios remain aligned with objectives.

Identify Tax-Loss Opportunities at Scale

Finding opportunities is one of the most time-consuming aspects of tax-loss harvesting. Reviewing portfolios individually limits the number of accounts that can be evaluated and increases the likelihood of missed opportunities.

Our toolkit does the heavy lifting of identifying potential loss candidates across groups of portfolios simultaneously, so teams can focus on reviewing opportunities and evaluating them more efficiently.

The platform also supports lot-aware selling, enabling investment professionals to evaluate positions at the tax-lot level rather than simply the security level. This approach helps maximize tax benefits while respecting each portfolio’s established sale-lot selection methodology and trading preferences.

Streamline Trade Execution

Once harvesting opportunities have been identified, the workflow bridges the gap between analysis and execution by incorporating trading connectivity directly into the harvesting process. Once loss candidates are identified, users can submit multi-platform Requests for Quote (RFQ) or Standing Offers without pivoting away.

Find Replacement Bonds While Managing Wash Sale Risk

Harvesting losses is only half of the equation. Firms must also reinvest proceeds in suitable replacement securities to maintain alignment with portfolio objectives while avoiding wash sale conditions.

Our users quickly find replacement bonds via the Investortools Dealer Network (IDN), scanning hundreds of thousands of available bonds to identify candidates that optimize portfolio construction.

A More Scalable Approach to Tax-Loss Harvesting

As tax-loss harvesting evolves from a year-end activity to a year-round portfolio management strategy, firms need tools that support every stage of the process.

Investortools provides an end-to-end workflow that helps investment teams:

• Set and track tax-loss harvesting targets
• Identify opportunities across large groups of portfolios
• Leverage lot-aware selling for greater tax efficiency
• Streamline execution through the IDN
• Access broad dealer inventory to identify replacement bonds
• Minimize wash sale risk while maintaining portfolio objectives

Using our solutions, firms spend less time managing individual tax-loss harvesting workflows and more time capturing opportunities across a greater number of accounts.

Want to make wrangling thousands of tax-loss harvesting requests alongside the “race to year-end” a thing of the past, reach out to our team to learn how to streamline your process.