BNY Mellon Precision Direct IndexingSM
On Your Mark—What Direct Indexing Means for Investors
With direct indexing, clients can hold the underlying securities of an index, rather than accessing them through pooled vehicles such as mutual funds. The structure enables a client’s direct ownership, which then allows for customized tax management and security selection.
Effectively, investors gain exposure to a traditional benchmark and maintain the power to customize the underlying holdings to pursue a range of goals—both financial and personal.
Index Your Way
Our direct indexing solution powers a simplified, integrated client experience while providing access to an institutional-quality index manager.
Tax-Managed
Manage tax implications in a cost-effective manner through tax-loss harvesting, tax-gains harvesting and tax transitioning.1
Personalized
Shape direct indexing strategies to align with clients’ unique needs, preferences and values.2
Efficient
Create efficient but tailored portfolios while preserving the diversification associated with a broad-based index.
Precision by Mellon. Powered by Pershing X.
Leveraging Mellon’s investment management expertise and the power of Pershing X’s technology, we are proud to provide advisors and clients with institutional-quality, personalized index solutions. Discover Your Direct Indexing X Factor
Mellon
With 40 years of indexing experience, Mellon is a global leader in index investment management. Their deep understanding of markets powers the precision required to navigate rebalances and build solutions that meet clients’ unique needs.
Pershing X
Pershing X is building an interconnected suite of financial applications that will work together, so that you can spend more time focusing on helping your clients thrive.
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1Tax loss harvesting is a process designed to reduce capital gains taxes owed from selling profitable investments. Tax gain harvesting, as opposed to tax loss harvesting, is a process of turning unrealized long term capital gains into realized capital gains at a specific time for tax purposes. Tax transitioning is designed to spread out and help mitigate the tax consequences of the phased transitioning of an account to the target strategy over a period of time.
There’s no guarantee that a particular investor will realize significant tax benefits from harvesting gains or losses. Investment strategies that seek to employ tax management may be unable to fully realize strategic gains or harvest losses due to various factors. Market conditions and/or client account holdings may limit the ability to generate tax losses. Tax-loss harvesting involves the risks that the new investment could perform worse than the original investment and that transaction costs could offset the tax benefit. Also, a tax-managed strategy may cause a client portfolio to hold a non-benchmark security in order to achieve more favorable tax treatment or to sell a benchmark security in order to create tax losses. The ability to minimize tax consequences for a specific account may decrease as gains have the potential to accumulate over a period of time. Investors in lower tax brackets generally will not derive the same level of potential tax benefits from tax-managed strategies than those in higher tax brackets. Tax considerations, while important, are just one factor to consider before making any investment decision. Tax-managed investing and tax transitioning do not equate to comprehensive tax advice, are limited in scope and not designed to eliminate taxes in an account. Please consult your own tax advisor or financial professional for more detailed information on tax issues as they relate to your specific situation.
2As of June 2023, the only target index available is the S&P 500® Index.
DISCLOSURE
For professional use only. Not intended for use by the general public. Pershing LLC and Pershing X, Inc. do not provide investment advice. Mellon is a division of Mellon Investments Corporation (MIC), a registered investment adviser. MIC provides day-to-day investment advisory services in connection with the product.