A Midwest regional bank, needed a solution to help advisors accurately track and monitor customers’ long-term and short-term capital gain totals.

The bank's advisors required accurate capital budget tax gain/loss tracking to manage client relationships effectively. Existing manual methods were time-consuming and prone to errors, making it challenging to consider tax sensitivity when placing trades.

First Rate WMP collaborated with the bank to implement Capital Gain Budgeting feature. This tool helps advisors set and manage thresholds for both total capital gains and short-term capital gains at the account level.

Key features include:

• Threshold Alerts: Warnings are triggered when proposed trades exceed predefined limits, helping advisors manage trades within budget.
• Flexible Budgeting Options: Flexible Budgeting Options: Budgets can be set as a dollar amount or as a percentage of the total account.
• Multi-Level Monitoring: Warnings appear for individual accounts, in List View for multiple accounts (when using Block Trades), and with the Group Rebalancer tool.
• Aggregate Gain Calculations: The tool uses short-term and long-term net gains for comparison and works independently of the tax lot selection method, ensuring seamless capital gain management across client portfolios.

With the new Capital Gain Budgeting functionality, the bank's advisors can now provide more tax-sensitive and tax-efficient services in an efficient manner. The solution has significantly reduced manual effort, improved accuracy, and enhanced the overall client management experience, allowing advisors to better meet customer needs while managing capital gains effectively.