Smartleaf Asset Management LLC (SAM) announced today that its sub-advisory service is now available on the Axos Advisor Services (AAS) platform. SAM provides automated rebalancing and trading as an outsourced service, allowing independent financial advisors to deliver cost-effective custom and tax-optimized portfolios to their clients custodied at Axos Advisor Services. Later this year, the service will include support for fractional share trading, making it economical for advisors to provide virtually all investors with access to customized and tax-optimized direct indexes and other equity strategies.
With SAM, advisors have full control over the investment experience. They retain control over asset allocation and product selection, either using their own or accessing them from third parties on SAM’s open-architecture Model Distribution Service.
SAM supports any combination of US ETFs, mutual funds and equity models — including direct indexes. With SAM, direct indexing doesn’t require Separately Managed Accounts (SMAs) and is as easy as working with ETFs.
SAM also supports “householding”, the ability to jointly manage multiple accounts in a household to a single household-level target asset allocation, leveraging qualified accounts as tax-free household-level asset allocation rebalancing centers. The service also prevents wash-sales across accounts in a household and supports tax and gains budgets at the household level.
SAM’s service includes a “Taxes Saved or Deferred Report” for each client account and household that enables advisors to document the taxes the client has saved or deferred through SAM’s active tax management. These documented savings/deferrals are typically more than the advisor’s fees.1
“SAM is a service for ambitious advisors that want to grow. With SAM, advisors can offer every client customization and tax-optimization services once available only to ultra-high net worth individuals. More importantly, SAM frees client-facing advisors to spend more time with clients and prospects,” noted Gerard Michael, President and Founder of SAM. “We’re delighted to be partnering with Axos Advisor Services, which is known for providing advisors with high-touch support, exceptional service and advanced technology, as evidenced by their forthcoming, industry-leading support for fractional shares.”
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