Access Portfolios

“We believe all investors should have access to customizable portfolios that align with their values and give them the opportunity to impact change in the companies where they hold shares.”

Plans fail for lack of counsel, but with many advisers they succeed.

Proverbs 15:22

Why Access Portfolios?

As an investor, you may desire solutions tailored to your personal goals and values that also honor your conscience. Access Portfolios provide a flexible, customizable option that enables you to build a portfolio that reflects your belief system. These tax efficient, Separately Managed Accounts (SMAs) offer many advantages, including opportunities for corporate engagement through proxy voting and representation in the boardroom. If desired, this solution also allows you to exclude companies from your portfolio using a menu of values-based screens.

Features of Access Portfolios

Tax Advantages

Using a technique called direct indexing,1 Access Portfolios transition to hold less funds and more individual stocks, which allows for enhanced tax management by realizing losses in the stocks that lose value—known as tax-loss harvesting.

While the Access Portfolio SMA transitions an existing portfolio to a Blue Trust solution over time, the process harvests losses along the way by selling stocks that have lost value. Some experts estimate that tax-loss harvesting can increase after-tax returns by 1% annually.2 When used with direct indexing of more individual stocks, instead of funds, research shows that this advantage has resulted in even higher returns for clients with higher incomes and more assets.3

Charitable Gifting Proposal

As an added feature of Access Portfolios, you can request a periodic gifting proposal from your advisor. This process enables you to donate highly appreciated stock in a beneficial way by analyzing which stocks to reduce based on your highest long-term unrealized capital gains and usefulness to your overall goals.

Values-Based Screening Options

Access Portfolios allow you to screen out certain industries or specific companies from your portfolio based on activities that may violate your values.4 A partial list of business activities from the screening menu are listed here.

  • Abortion
  • Alcoholic Beverages
  • Animal Testing
  • Cannabis
  • Contraceptives
  • Defense & Weapons
  • Gambling
  • Pornography
  • Stem Cell Research
  • Tobacco

Corporate Engagement Services

Proxy Voting Facilitation

Owning company shares allows investors to express their voice in the boardroom through proxy voting on shareholder resolutions. Investors can vote on their own or delegate the process to Blue Trust’s sub-adviser who follows a principles-based proxy voting policy.5

This policy is based on the belief that human productivity and dignity result in abundant and innovative solutions to the world’s problems.

For example, this voting policy supports:

  • Leadership and governance policies that protect shareholders as the primary interest
  • Protecting equal rights, religious liberty, and the sanctity of life
  • Environmental policies that are not detrimental to shareholders’ interests and not used for political pressure

Corporate Engagement Opportunities

Access Portfolio investors can directly participate in the corporate engagement process through our selected partners in order to understand and influence corporate positions on issues. This process varies depending on the company and issue, but it could include engaging our partners to attend board meetings, interact with investor relations groups, provide mailings on current topics and position statements, or submit shareholder resolutions for proxy vote.

Next Steps

If you have specific questions about whether Access Portfolio are a good fit for you, please contact your Blue Trust advisor. If you do not have a Blue Trust advisor, please complete the contact form below.

Access Portfolios are for investors who wish to:

  • Realize growth while choosing individual stock positions aligned with their values
  • Reduce taxes and retain wealth for other purposes
  • Make an impact for the greater good through charitable gifting
  • Have their voices heard at the corporate level

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1 Direct indexing involves buying a portfolio of stocks to emulate the index factor exposures and returns as opposed to buying the index fund. Investors who have considerable investments in a taxable account and desire a high level of customization may benefit more from direct indexing. Trading and customizing positions in a direct-indexing portfolio, can increase your transaction costs, which can decrease your returns. As with any investment strategy, there is potential for profit as well as the possibility of loss. Blue Trust does not guarantee any minimum level of investment performance or the success of any investment strategy. All investments involve risk and investment recommendations will not always be profitable. You cannot invest directly in an index.

2 Shomesh E. Chaudhuri, Terence C. Burnham & Andrew W. Lo (2020) An Empirical Evaluation of Tax-Loss-Harvesting Alpha, Financial Analysts Journal, 76:3, 99-108, DOI: 10.1080/0015198X.2020.1760064

3 Kevin Khang, Thomas Paradise & Joel Dickson (2021) Tax-Loss Harvesting: An Individual Investor’s Perspective, Financial Analysts Journal, 77:4, 128-150, DOI: 10.1080/0015198X.2021.1963187

4 Values screening performed by the sub-adviser, Vident Financial, uses third-party provided screening methodologies. Screening is subjective by nature and may not align with a client’s perspective, particularly what constitutes significance of a company’s business activity or adherence to responsible investing principles. Certain environmental, faith-based, governance, and/or social screens may lessen the universe of investments. Therefore, the portfolio’s implemented strategy may underperform a portfolio comprised without screens. The portfolio may forgo opportunities to gain exposure to companies, industries, sectors, or countries that outperform and may choose to sell a security when it might be disadvantageous to do so.

5 Vident Investment Advisory, LLC serves as the sub-adviser for the Blue Trust Access Portfolios. A sub-advisory fee is charged by and paid to Vident Investment Advisory, LLC as the sub-adviser to the Access Portfolios in addition to the investment management fee charged by Blue Trust. Contact your advisor to request a copy of Vident Investment Advisory LLC’s principles-based proxy voting whitepaper or ADV for more information about the sub-adviser.

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Trust and investment management accounts and services offered by Blue Trust, Inc. are not insured by the FDIC or any other federal government agency, are not deposits or other obligations of, nor guaranteed by any bank or bank affiliate, and are subject to investment risk, including possible loss of the principal amount invested. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, and CERTIFIED FINANCIAL PLANNER™ in the U.S.
*The client’s experience may not be representative of the experience of other clients and is also not indicative of future performance or success.
**All financials are as of 6/30/24 and subject to change.
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