---
title: August 2025 SSR Tax-Aware Update
description: August 2025 saw the Burney Size & Style Responsive Tax-Aware Strategy
image: https://burneyadvisorservices.com/hubfs/Screenshot%202025-09-10%20151934.png
---

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 Sep 11, 2025

[Kenny Mezher, CFA, CFP®](https://burneyadvisorservices.com/bas-resources/author/kenny-mezher)

# August 2025 SSR Tax-Aware Update

### **Overview**

The Burney **Size & Style Responsive Tax-Aware Strategy** returned **+3.20%** in August vs. **+2.31%** for the Russell 3000 (IWV), outperforming by nearly 1.0%. Despite a modest -0.3% drag from Size & Style positioning, **stock selection and interaction effects** drove meaningful alpha as our team leaned into fundamentally sound names that also fit the current risk-on regime.

Waterfall Attribution – August 2025

![](https://burneyadvisorservices.com/hs-fs/hubfs/image-png-Sep-10-2025-06-41-42-4198-PM.png?width=568&height=423&name=image-png-Sep-10-2025-06-41-42-4198-PM.png)

### **Size & Style Attribution Commentary**

- **Non-Large (SMID caps)** outperformed large caps during the month, with **value leading the way**.
- We maintain a **20% tilt to non-large caps**, split **70% value / 30% growth**.
- However, **Large Growth (our largest sleeve)** lagged notably. With 80% of our portfolio in large caps, weighted 60% growth / 40% value, this heavily impacted our **Size & Style attribution**, dragging relative returns by **-0.3%**.

                                                        ![](https://burneyadvisorservices.com/hs-fs/hubfs/image-png-Sep-10-2025-06-50-24-4519-PM.png?width=303&height=324&name=image-png-Sep-10-2025-06-50-24-4519-PM.png)

### Stock Selection: A Recovery Signal Guided by Fundamentals

Despite challenges in a **risk-on rally dominated by high beta and speculative names**, we were able to deliver positive **alpha through stock selection**:

- We used our **proprietary recovery signal**—trained to identify favorable setups in recovery markets—**as a screen**, not as a tilt.
- This allowed us to favor stocks with both **strong fundamentals** and **participation in the rally**.
- The result: **+0.50% alpha from stock selection** and another **+0.70% from interaction**.
  
  ### Market Caution: Risk Appetite Indicators at Extremes
  
  Although the recovery rally remains intact, **we remain cautious** given how extended risk-on signals have become:
  
    - **High yield credit spreads** remain near historic lows

![](https://burneyadvisorservices.com/hs-fs/hubfs/image-png-Sep-10-2025-06-53-01-5499-PM.png?width=1634&height=654&name=image-png-Sep-10-2025-06-53-01-5499-PM.png)

- - The **Dow Jones Market Neutral Low Beta Index** has dropped significantly and is also near historic lows

We are nearing **extreme levels of risk appetite**, based on key indicators like credit spreads and low beta index levels. Historically, when these measures reach such compressed levels, the **upside for the riskiest segments of the market becomes limited**, and the probability of a **return to more rational, fundamentals-based trading increases**.

GIPS Composite Performance 

As of August 31, 2025, the Size & Style Responsive Tax-Aware strategy has returned 10.06% YTD, compared to the Russell 3000’s 10.58%. Over the trailing 1-year, 3-year, and 5-year periods, the strategy has delivered strong risk-adjusted returns of 15.61%, 18.32%, and 17.08% respectively. Since inception (March 1, 2018), the strategy has compounded at 13.50% annually, nearly in line with the Russell 3000’s 13.54%, while offering a more tax-efficient, style- and size-responsive approach.

![](https://burneyadvisorservices.com/hs-fs/hubfs/image-png-Sep-10-2025-07-11-50-4063-PM.png?width=615&height=276&name=image-png-Sep-10-2025-07-11-50-4063-PM.png)

 

**Compliance Disclosure:**  
The Size and Style Responsive Tax-Aware strategy seeks to manage after-tax returns by incorporating tax considerations into trade decisions. For example, when possible, the strategy may defer realizing short-term gains to achieve long-term tax treatment, subject to client-specific constraints and objectives. Tax impact is a factor in implementation, but it does not override the strategy’s investment objectives.  
Past performance, whether actual or hypothetical, does not guarantee future performance. Investment results and principal value will fluctuate, and clients' investments, when redeemed, may be worth more or less than their original cost. This communication is exclusively for investment advisors and financial professionals and is not intended for clients or the investing public.

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 Advisory services are offered through the Burney Company, an investment advisor registered with the U.S. Securities & Exchange Commission. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.

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