Benefits to IDF Portfolio Managers:
Benefits to Investors:
Increasing Tax Alpha
Investing in tax inefficient fund strategies through insurance dedicated funds defers short term capital gains and ordinary income taxes
Private Placement Variable Annuities defer paying taxes on investment gains while retaining full ownership and control of the assets and the ability to change the named beneficiary at any time. This increases the amount ultimately given to charity.
While investments in Insurance Dedicated Funds are considered “sticky assets”, investors came make additional deposits or withdrawals at any time just as they would with any other limited partnership investment.
Because the investor does not have to pay for income and principal guarantees, Private Placement Insurance Products have significantly lower fees than traditional retail variable annuities and variable life insurance.
State Tax Arbitrage
Investors that intend to withdrawal their IDF investment in a lower tax bracket state than where they made deposits, can defer their taxes until they do so.
Accel Fund Management, an Accel affiliate company, provides investment platforms for high net worth individuals, family offices, insurance companies and financial professionals.