Aperio Group

Aperio Group is a fast-growing RIA that focuses on three areas: taking advantage of tax losses, incorporating clients' core values into their portfolios, and “customized beta” — reducing equity risk with low-risk strategies. Aperio, which means “to make clear or reveal the truth” in Latin, has experienced a 56.8% increase in total assets in the past year. “We started in August 1999 with the idea to use separate accounts and deliver indexing the same way as [The Vanguard Group Inc.],” said Paul Solli, a partner at the firm. “But we can pass through losses, which mutual funds can't do. There are things you can do in an SMA to make a much more effective tax-harvesting strategy.” Ninety-eight percent of Aperio's clients came to the firm through intermediaries, Mr. Solli said, such as independent RIAs, family and multifamily offices, large teams with autonomy at broker-dealers and consulting firms. With its strategy to take advantage of tax losses, Aperio has gained assets as advisers and clients have begun to appreciate the effects of tax increases. “All of a sudden, advisers and clients are much more aware of tax rates,” Mr. Solli said.