/Indextra Asset Management Launches Direct Indexing Service in the UK
– New service targets high-net-worth individuals with advanced tax management solutions
– Direct indexing allows for personalized ownership of individual shares
– The platform enhances tax optimization and portfolio management capabilities
– Founders’ Mandate tier introduced for initial professional counterparties
Indextra Asset Management has officially launched its dedicated direct indexing service, introducing an advanced investment framework that has been widely embraced by high-net-worth individuals (HNWIs) in the United States to the UK wealth management sector. The service, which is authorized and regulated by the FCA, offers systematic, security-level tax management tailored specifically for sterling regimes.
While direct indexing has developed into a market exceeding one trillion dollars in the US, attributed to its significant tax advantages and customization options, it has historically seen limited adoption within the UK. Indextra aims to fill this gap by unbundling standard global equity benchmarks. Rather than purchasing units in a pooled fund or exchange-traded fund (ETF), investors will have direct ownership of the underlying individual shares within a personalized separately managed account. The platform is designed to closely track target indices while enabling systematic tax-loss harvesting at the individual security level throughout the year, thus generating active tax alpha.
Additionally, the service facilitates a smooth transition for clients seeking to exit underperforming, high-fee legacy active managers on a tax-neutral basis. It systematically harvests realized losses to offset gains generated during the transition period, returning control over tax optimization and values-based exclusions back to the investors. This structural change aims to maximize long-term compounding efficiency within the UK Capital Gains Tax framework.
“For years, sophisticated investors in the US have used direct indexing as a core tool to optimize after-tax wealth,” said Tim Neale, CEO of Indextra Asset Management. “We have built a technology-led execution framework tailored directly for the UK regime, allowing wealth managers and professional clients to move away from rigid fund wrappers but still capture benchmark returns while maximizing after-tax wealth.”
The platform incorporates rule-based execution, automated portfolio rebalancing, and direct transparency, with personalized filtering options available for single stock concentrations, specific sectors, or values-based ESG exclusions. Alongside this launch, Indextra has also introduced its Founders’ Mandate tier, providing preferential commercial terms to an initial group of qualified professional counterparties.
Indextra Asset Management specializes in direct indexing strategies for UK professional investors and wealth managers, allowing the replication of global equity benchmarks through separately managed accounts to provide security-level tax management and bespoke portfolio customization.
