Tech-enabled private wealth manager Wedmont Private Capital announced that it has expanded its direct indexing services to now include custom benchmarking and ESG integration.

Wedmont is a private wealth management firm, serving high net worth clients, founded in 2019 by Dominic Corabi and James Pelletier, alumni of Vanguard (Corabi), UBS (Pelletier), and Credit Suisse (both). According to Wedmont, the firm was founded on the premise that HNW investors should not be forced to pay expensive and unnecessary fees for investment management and wealth planning. Wedmont, who advises investors with more than $1,000,000 in investable assets, charges a flat $10,000 annual fee regardless of the size of a portfolio.

The firm describes its “secret sauce” as direct indexing with tax-loss harvesting.

Direct indexing is an investment methodology that uses sophisticated risk-modeling software to construct portfolios of individual stocks that maintain similar industry, geographic, and volatility characteristics of a target benchmark, such as the S&P 500.  It takes advantage of the normal fluctuation in stock prices to regularly rebalance the portfolio and harvest tax losses from stocks that have declined in value.  These tax losses may be used by investors to offset capital gains and reduce tax bills. 

With this new announcement, Wedmont is offering clients the ability to build direct indexed portfolios that integrate multiple benchmarks and ESG considerations, providing them with tax efficient, customized and personalized portfolios, with investments matching their personal values.

Dominic Corabi said:

“Direct indexing is a marked improvement for investors with significant assets and substantial tax liabilities. Our capabilities in this space are now second to none, and our flat fee structure means that HNW investors no longer have to pay exorbitant fees to access the benefits of direct indexing.”