Four ugly truths you need to know before capital gains season arrives

A common issue advisors face today is that the COVID-19 pandemic has heightened uncertainty over the economy and finances.

What's one of the best ways to deal with this uncertainty?

Focus on the things you can control—because taxes on investment portfolios remain a certainty.

We at Russell Investments believe that tax-managed investing should play an increasingly important role in investors’ portfolios. Now may be a good time to take advantage of market events and transition to tax-managed investing. Here's why:

The four ugly truths

Ugly truth 1

Ugly Truth #1

Many mutual funds may report sizable capital gain distributions this year driven by historic outflows.

Discover why

Ugly truth 2

Ugly Truth #2

A majority of mutual funds show a lower Net Asset Value (NAV) today than three years prior.

Read more

Ugly truth 3

Ugly Truth #3

Sunsetting of the Tax Cut and Jobs Act (TCJA) after 2025 with likely reversion to higher tax rates requires thoughtful tax planning now.

Read more

Ugly Truth #4

Ugly Truth #4

There are massive $2.6 trillion (and growing) stimulus packages. How are we going to pay for this?

Read more

Here's how we can help you prepare today

Russell Investments actively manages taxes throughout the year within each of our tax-managed & tax-exempt funds seeking to maximize after-tax returns.

Our trading desk is ready 24 hours a day to systematically implement tax-loss harvesting strategies—whenever the opportunity presents itself.

Our tax-managed funds were able to materially improve their tax standing throughout the volatile 1Q2020 through opportunistic active tax-loss harvesting.

Russell Investment Company's tax-managed & tax-exempt funds
1Q2020 Capital Loss Carryforward (% of NAV)

Tax-Managed U.S. Large Cap (RETSX) Tax-Managed U.S. Mid & Small Cap (RTSSX) Tax-Managed International Equity (RTNSX) Tax-Managed Real Assets (RTXSX) Tax-Exempt Bond (RLVSX) Tax-Exempt High Yield Bond (RTHSX)
-3.7% -8.9% -18.2 -11.8 -1.2 -1.8
Capital Loss Carryforward (% of NAV) as of June 30, 2020

Take action now.

Year-end will be here before you know it. The future might not hold the same opportunities as to what is available right now. Take advantage of this current market opportunity to help your clients.

Consider transitioning to a tax-managed solution with the help of your dedicated Russell Investments' sales team and our customized tax-impact proposals.

Connect 1:1 with your dedicated regional team at Russell Investments.

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Fund objectives, risks, charges and expenses should be carefully considered before investing. A summary prospectus, if available, or a prospectus containing this and other important information can be obtained by calling (800) 787-7354 or visiting the prospectus and reports page to download one. Please read a prospectus carefully before investing.

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