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- New Tax Efficient Transition Service and Dollar Cost Averaging Service help clients implement tax-efficient transitions and systematic cash deployment within personalized investment strategies.
- The new services help streamline portfolio transitions and support more personalized investment strategies for clients.
- Both services are available through the Merrill Lynch Investment Advisory Program and are implemented by Managed Account Advisors LLC.
Merrill today announced the launch of Tax Efficient Transition Service (TET) and Dollar Cost Averaging Service (DCA), new services that combine automation with professional portfolio oversight to help clients simplify asset transitions and cash deployment into managed or custom managed investment strategies in the Merrill Lynch Investment Advisory Program (IAP). Together, these services help clients navigate portfolio transitions with greater ease, consistency and alignment to long-term investment plans.
"Investors often face two common challenges: how to transition appreciated assets without realizing all of the tax impact at once, and how to invest cash without feeling pressured to time the market," said Jay Link, Head of Fiduciary Programs and Platforms at Merrill. "These services help clients to stay focused on their long-term financial goals."
Tax Efficient Transition Service
TET is designed for clients who hold appreciated securities and want to move into a managed or custom managed investment strategy in IAP. The service provides a structured tax-efficient approach to transitioning assets over time, helping clients move toward their target allocation and selected investment strategy, while managing the realization of capital gains. Through the TET service, assets can be invested into the selected investment strategy gradually over time rather than sold and reinvested all at once.
Dollar Cost Averaging Service
DCA is designed for clients who hold cash balances and want to gradually invest in a managed or custom managed investment strategy in IAP. The service allows clients to invest cash into eligible managed strategies over a predetermined, client-selected schedule, helping them continue investing at regular intervals through changing market conditions. The service is designed to help reduce the impact of market volatility and support a more disciplined approach to investing.
Both services are optional and available to clients, with no additional IAP Program Fees charged. They are available through IAP and are implemented by Managed Account Advisors LLC (MAA), Merrill's centralized team that helps implement and manage portfolio solutions on behalf of clients and advisors.
"These new capabilities reflect our continued focus on making it easier for advisors to implement personalized investment strategies at scale," said John Capelli, Head of Managed Account Advisors at Merrill. "By combining automation with professional portfolio oversight, TET and DCA services help streamline portfolio implementation and create more opportunities for meaningful client engagement."
Frequently asked questions
Question: What is the Tax Efficient Transition Service (TET)?
Answer: TET is a service designed to help clients transition appreciated securities into a managed investment strategy over time. The service uses a structured approach to help clients move toward their target allocation and selected investment strategy, while managing the realization of capital gains. Assets eligible for the service include individual equity securities, eligible mutual funds, and ETFs. Fixed income assets (excluding mutual funds and ETFs) are not considered eligible transition assets.
Question: What is the Dollar Cost Averaging Service (DCA)?
Answer: DCA is a service that gradually invests cash into a managed investment strategy according to a client-selected schedule. By investing at regular intervals, the service is designed to help reduce the impact of market volatility and support a disciplined approach to investing.
Question: How are the services managed?
Answer: Both services are available through the Merrill Lynch Investment Advisory Program and are implemented by Managed Account Advisors LLC, Merrill's centralized team that helps implement and manage portfolio solutions on behalf of clients and advisors.
Question: How can clients access these services?
Answer: Clients interested in TET or DCA should speak with their Merrill advisor to determine eligibility and whether either service may be appropriate for their investment objectives and circumstances.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving more than 69 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
Reporters may contact
Carolyn Batt, Bank of America
Phone: 1.646.983.1369
carolyn.batt@bofa.com
MAP# 9115610
Important Disclosures
Investing involves risk. There is always the potential of losing money when you invest in securities.
Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Dollar cost averaging cannot guarantee a profit or prevent a loss. Since such an investment plan involves continual investment in securities regardless of fluctuating price levels, clients should consider their willingness to continue purchasing during periods of high or low price levels.
This material does not take into account a client's particular investment objectives, financial situations, or needs and is not intended as a recommendation, offer, or solicitation for the purchase or sale of any security or investment strategy. For more information about these services and their differences, speak with your Merrill financial advisor.
The Merrill Lynch Investment Advisory Program is an investment advisory program sponsored by Merrill and MAA. Merrill offers a broad range of brokerage, investment advisory and other services.
There are important differences between brokerage and investment advisory services, including the type of advice and assistance provided, the fees charged, and the rights and obligations of the parties. It is important to understand the differences, particularly when determining which service or services to select. All recommendations must be considered in the context of an individual investor's goals, time horizon, liquidity needs and risk tolerance. Not all recommendations will be in the best interest of all investors. For more information about the Merrill Lynch Investment Advisory Program, including our fiduciary responsibilities, you may obtain a copy of the Merrill Lynch Investment Advisory Program Brochure by accessing the SEC website at www.adviserinfo.sec.gov.
The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., ("Bank of America") and Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S" or "Merrill"), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation.
Managed Account Advisors LLC (MAA), a Registered Investment Adviser and an affiliate of MLPF&S, is the overlay portfolio manager for implementing the strategies. MAA implements Merrill's strategy recommendations in accounts in the Merrill Lynch Investment Advisory Program (IAP), subject to any reasonable client-imposed restrictions, cash flow and other considerations.
BofA Global Research is research produced by BofA Securities, Inc. ("BofAS") and/or one or more of its affiliates. BofAS is a registered broker-dealer, Member SIPC and wholly owned subsidiary of Bank of America Corporation ("BofA Corp.").
Bank of America Private Bank is a division of Bank of America, N AN.A., Member F D I CFDIC and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp."). Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of BofA Corp. MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp.").
Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation.
Investment products
Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value |
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SOURCE Bank of America Corporation
