Smartleaf Asset Management (SAM) to sub-advise Choreo, LLC, Choreo Tax Advantage™ portfolios

SAM enables Choreo advisors to offer their clients a new level of tax-efficient investing at the household level – and document the value they provide – without adding to their workload.

BOSTON, March 4, 2025 /PRNewswire/ -- Smartleaf Asset Management, LLC ("SAM"), the RIA subsidiary of Smartleaf, Inc., today announced its strategic partnership with the private equity-backed RIA Choreo, LLC, in which SAM will serve as a subadvisor managing the daily review, rebalancing and trading of Choreo's Choreo Tax Advantage^™ accounts.

The service will enable Choreo advisors to create a tax-optimized transition plan at the household level in a matter of seconds, a task that previously took hours per account. Implementation of the plan, including daily review, year-round tax loss harvesting and risk-optimized gains deferral, is taken care of by SAM.

SAM will document the value each client receives from SAM's active tax management.

"For most firms, the level of personalization and tax optimization they provide clients is bounded by operational limits. For Choreo, there are no operational limits – the only constraint is the best interests of the client," commented Jerry Michael, Smartleaf Asset Management President, adding "Choreo serves as the investing affiliate of CPA firms. It follows that their tax management has to be second to none. And they're PE-backed, with ambitious goals for both organic and inorganic growth. Our challenge was to help them free their client-facing advisors to spend more time with clients and prospects, while delivering best-in-class personalization and tax management."

After evaluating multiple providers, Choreo selected SAM because of its unmatched ability to fully automate tax-optimized portfolio management at the household level. Unlike traditional rebalancing platforms or manual processes, SAM's service combines daily portfolio oversight, automated tax-loss harvesting, and real-time transition planning—all in a scalable, advisor-friendly solution.

As a subadvisor, SAM will leverage Smartleaf's portfolio rebalancing platform to largely automate its service, providing:

• Daily portfolio review. SAM will analyze every account every trading day for opportunities to improve the portfolio.
  
  
• Household-level management. SAM will jointly manage multiple accounts in a household to a household-level target asset allocation, preventing cross-account wash sales and leveraging qualified accounts to minimize taxes when implementing household-level asset-class rebalancing.
  
  
• Client-specific documentation of tax management value. SAM will enable Choreo to document for each client the amount of taxes that client has saved or deferred through active tax management. SAM generates this report for each client daily, at the household and account level.
  
  
• Easy-to-implement direct indexing. SAM will make working with direct indexes as easy as working with ETFs – a choice on a pull-down menu, with no sub-account opening, no fund transfers, no separate process for implementing cash withdrawals or deposits, and no separate process for asset class rebalancing.
  
  
• Risk-optimized gains deferral. SAM will seek to minimize capital gains taxes by deferring the realization of short- and long-term gains, while counterbalancing the risk effects of overweighted positions.
  
  
• Year-round loss harvesting. SAM will implement an optimized year-round loss harvesting strategy, which Smartleaf research suggests is 50% - 100% more effective than year-end-only loss harvesting.
  
  
• Tax and Gains Budgets at the account and household level. SAM will support risk-optimized multi-year transition plans based on tax and gains budgets set at the account or household level. Advisors can create these plans in a matter of seconds, a task that previously took hours.
  
  
• Security, social and religious-value screening. SAM will implement per-account security, ESG and religious value screens.
  
  
• Real-time transition plans and tax-impact reports. SAM's advisor portal enables Choreo advisors to generate multi-year tax-optimized transition plans for prospects in real time. SAM's portal also provides real-time feedback on the tax impact of social screens and cash withdrawals, enabling advisors to better guide clients and prospects in making personalization choices through interactive exploration in a face-to-face meeting.

For more information about Smartleaf Asset Management, visit smartleafAM.com.

About Smartleaf Asset Management:

Smartleaf Asset Management, LLC ("SAM"), an SEC-registered advisor, is a subsidiary of Smartleaf, Inc. SAM leverages Smartleaf's software to provide sub-advisory services that make delivering personalized and tax-optimized portfolios simple and scalable. SAM enables wealth advisory firms to provide every client of every size the highest levels of customization and tax management. With SAM, customization and tax-management options are simply choices on pull-down menus, and implementation is automated. SAM supports tax-optimized holistic unified managed accounts (UMAs) and tax-optimized unified managed householding (UMH). For more information on SAM, visit www.smartleafAM.com.

Media Contact: Becca Willis, [email protected]

SOURCE Smartleaf Asset Management