Tax Managed Separate Accounts

 

At McClurg Capital we believe that the best financial plan is making more money. And taxes are one of the largest detriments to exceptional investment performance.

Many wealthy, sophisticated investors are either too busy to make or do not wish to make day-to-day investment decisions. Opportunities for gains and year-end tax strategies are often missed because they would rather concentrate their efforts on their business or profession and of the demands of the holidays.  These clients retain McClurg Capital as a Registered Investment Advisor (RIA) to manage their portfolio on a discretionary basis, 24/7/365.  In addition to exemplary performance, we strive to manage taxable accounts for year-end tax neutrality or for realized losses that can go to reduce taxable income from other sources.  Reportable tax losses can often be achieved even in years where the account has sizable unrealized gains. 

When you retain McClurg Capital, we agree to a written Investment Policy Statement. In this policy, the client tells us about his or her risk tolerance, acceptable and unacceptable types of securities, tax considerations, liquidity and income requirements, and expected rates of return. Within these guidelines, the portfolio manager makes the investment decisions, and provides confirmations of each transaction along with quarterly performance reports to the client. The portfolio manager directs the investments of the account in conformity with the clients instructions.  Our quarterly performance reports are compliant with the strict standards of the CFA Institute and report your account's rate of return net of all expenses.  So you will know you are getting your money's worth. 

In contrast to a mutual fund where the investors assets are commingled with thousands of others, the client has a separate account, Each security is held in the client's name and title, so that the account can be managed for the client's unique requirements as to income, growth, safety, and taxes. Your rate of return is not comingled with that of the pooled fund.  And you will receive CPA-ready year-end tax reports.  Thus the name "Tax Managed Separate Accounts".

The RIA is compensated with a modest percentage of the assets in the account. Therefore, the only way the manager can increase his or her earnings is to increase the value of the client's account through performance and tax savings. McClurg Capital refers to the relationship as a "partnership in performance." The RIA relationship carries with it a fiduciary obligation and a higher level of accountability than is otherwise expected from a brokerage, bank or mutual fund relationship.

McClurg Capital brings this more sophisticated approach and higher level of accountability to a broader range of clientele at surprising low cost.