Top advisors maintain focus on tax efficiency despite investor fears about market volatility and political turmoil

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Apr 08, 2019, 09:20 ET

BOSTON, April 8, 2019 /PRNewswire/ -- Market volatility and the political environment dominated investor discussions with advisors in the first quarter of 2019, according to Eaton Vance's Spring 2019 Advisor Top-of-Mind Index (ATOMIX) survey. Ninety-five percent (95%) of advisors reported interest among their clients in reallocating portfolios to address or capitalize upon recent volatility, and nearly nine out of ten (88%) said the current political environment is a key part of client conversations. Moreover, three out of four advisors (75%) said fear is the primary current motivator for their clients, a 74% increase since October 2018.

According to the ATOMIX survey, many advisors maintain a focus on portfolio tax efficiency, employing several tactics to mitigate clients' tax bite:

37% prefer municipal strategies
32% opt for tax-managed equity strategies
25% use tax-loss harvesting
7% manage high capital gains

Additionally, 61% of advisors reported that their clients have concentrated stock positions that could trigger capital gains taxes when sold.

"While market volatility and politics can be distractions, leading advisors find time to help clients understand their personal tax situations and implement smart tax-management solutions for their portfolios," said John Moninger, managing director of sales. "And the very best advisors approach tax management as a twelve-month-a-year proposition, not just an April or December activity."

Eaton Vance ATOMIX Methodology
ATOMIX is calculated based on the findings of a survey of 600 financial advisors from a diverse group of companies. Eaton Vance contracted with a third party to conduct the online survey from February 25 – March 8, 2019. ATOMIX uses a similar methodology as the U.S. Consumer Confidence Index* (which has no affiliation with Eaton Vance) in that it calculates a weighted average of current perceptions (40% of the Index) and what advisors think about the trends (60% of the Index). The Index set a baseline average of 100 for April 2014. Each component measured is tracked quarterly to illustrate changes in advisor perceptions and changes in trends over time. Future surveys will sample different financial advisors and may produce different results. Learn more at eatonvance.com/blog.

About Eaton Vance
Eaton Vance Corp. (NYSE: EV) provides advanced investment strategies and wealth management solutions to forward-thinking investors around the world. Through principal investment affiliates Eaton Vance Management, Parametric, Atlanta Capital, Hexavest and Calvert, the Company offers a diversity of investment approaches, encompassing bottom-up and top-down fundamental active management, responsible investing, systematic investing and customized implementation of client-specified portfolio exposures. As of February 28, 2019, Eaton Vance had consolidated assets under management of $452.6 billion. Exemplary service, timely innovation and attractive returns across market cycles have been hallmarks of Eaton Vance since 1924. For more information, visit eatonvance.com.

* The monthly Consumer Confidence Survey®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The Consumer Confidence Index was started in 1967 and is benchmarked to 1985=100. The Index is calculated each month based on a household survey of consumers' opinions on current conditions and future expectations of the economy. Opinions on current conditions make up 40% of the Index, with expectations of future conditions comprising the remaining 60%. Eaton Vance does not provide legal or tax advice.

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SOURCE Eaton Vance Corp.