Separate account managers have seen a rise in tax-loss harvesting activity over the past three years, according to recently published research from the Money Management Institute and Financial Research Corporation.

According to a survey of MMI member firms that are investment managers, 73% have seen a spike in tax-loss harvesting, the practice of selling holdings at a loss to offset gains elsewhere in the portfolio. The purpose of harvesting is to lower an investor's tax liability without altering the risk profile, sector or strategy of the managed account.

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