Altruist Unveils Collection of Tax Management Tools

Altruist, a custodian for independent registered investment advisors (RIAs), has introduced TaxIQ, a collection of tax management solutions created to assist advisors in optimizing clents’ after-tax returns.

TaxIQ will enable advisors to implement capital-gains deferrals, wash-sale avoidance and opportunistic tax-loss harvesting at the account level, the firm said. Once fully activated, Altruist advisors will be able to pursue tax alpha on behalf of their clients without managing individual positions, selecting tax lots, or timing trades.

“Advisors have long been searching for tax-sensitive investing capabilities that don’t require complex, manual processes,” said Adam Grealish, head of investments at Altruist. “Coupled with other capabilities at Altruist, like direct indexing and fractional shares, independent firms now have a robust set of tax-optimizing tools to help deliver exceptional client outcomes at a much greater scale.”

Altruist noted that tax loss harvesting is available for 10 basis points per year, but advisors can trial it for free through September 2024.

In May, LA-based Altruist announced it raised $169 million in Series E funding led by venture capital firm Iconiq Growth, with participation from new investor Granite Capital Management, and continued support from existing investors Adams Street Partners and Sound Ventures. The new round brought the company’s total funding to over $450 million and valued it above $1.5 billion.

Altruist claims to be the third-largest custodian in terms of the number of RIAs served, ranking after Charles Schwab and Fidelity.