Prosperity Capital Advisors currently manages three families of investment portfolio models: Pre-Tax, Post-Tax, and Global Allocations. Comprised of 20 total portfolio offerings, each is based on the tax-qualification of the assets being managed and the investor’s level of comfort in exposure to market volatility.
Tilting towards the evidence
Generally, these categories have performed as follows on a long-term investment basis:
Equities outperform fixed income
Small caps outperform large caps
Value stocks outperform growth stocks
More profitable companies outperform less profitable companies
These four factors are used to create optimal and efficient portfolios for each of the portfolio families. However, how the assets are managed within those models comes with different considerations.
The Pre-Tax Model is appropriate for investors seeking growth potential within their pre-tax accounts, such as 401(k)s, IRAs, 403(b)s, TSP, etc. Each portfolio is built with a selection of Dimensional Fund Advisors (DFA) mutual funds to achieve a low-cost, pure asset class exposure for broad market diversification for various levels of risk. As these portfolios are designed specifically for tax-deferred or tax-free assets, internal capital gains are not considered to be a factor in their management.
The Post-Tax Model is appropriate for investors seeking tax-efficient growth potential for their post-tax accounts. Each tax-managed portfolio is built with a selection of Dimensional Fund Advisors (DFA) mutual funds to achieve low-cost, pure asset class diversification for various levels of risk. Utilizing tax harvesting, rebalancing within a fund, and dividend management as strategies for tax management, these portfolios aim to avoid short-term capital gains to maximize post-tax returns while maintaining the desired asset class exposure.
The Global Allocation Model is appropriate for investors seeking a broadly diversified investment with built-in rebalancing. Each portfolio is built with a selection of Dimensional Fund Advisors (DFA) mutual funds to achieve low-cost, pure asset class diversification at various levels of risk. The Global Allocation Model provides the value of broad global exposure so accounts as low as $5,000 can get started.
About Dimensional Fund Advisors (DFA)