Separately Managed Accounts

Our specialty is constructing and managing highly customized, tax-managed, index-based core equity portfolios for the advisor’s high net worth clients. Comprised of individual securities, each equity portfolio seeks to replicate the performance of a chosen benchmark tailored to the investor's specific financial circumstances and preferences.

Advisor Partners manages a variety of index-based mandates

As a starting point, you can choose from any of the S&P Series of indexes:

STANDARD

All Cap U.S. Equity (S&P 1500 Index)
Large Cap U.S. Equity (S&P 500 Index)
Mid/Small Cap U.S. Equity (S&P 400, 600 Index)
International Equity ADR (S&P ADR Index)
Global Equity (Combine S&P 1500 with S&P ADR)
SRI Screen on any of the above

Using the standard index as a starting point, you can choose to customize for a “personal benchmark”:

CUSTOM

Low Beta mandates for clients that have exposure to a stock and/or industry
Completion strategy for a client that has legacy position(s)
Specialized third-party benchmarks
Specific yield targets
Custom blended benchmarks

Advisor Partners delivers real Tax Management

We go beyond simple tax efficiency to deliver tax benefits that are just not available in mutual funds or ETF’s. The benefits are typically realized at both account inception and in the ongoing management of the portfolio.

Portfolio Construction / Transition

Consult with advisor to define client needs and objectives
Evaluate tax-aware transitions of existing client stock holdings to avoid/minimize gain realization
Discuss trade-offs between taxes & investment goals
Provide customized investment proposal

Ongoing Management

Actively manage taxes and portfolio risk by avoiding gains, harvesting losses, and tax-aware re-balancings
Adjust portfolio for changes in client objectives
Minimize gain realization of partial redemptions
Target low-basis tax lots for gifting

When to employ the Strategy

Taxable “core” equity assets where you are looking for asset class representation
Any client requiring customized investment needs (socially responsible, high dividend, value tilt, etc.)
Any client or prospect with existing individual stock holdings (particularly concentrated equity positions)
Client has concentrated risk exposure to one particular stock/industry
Client has variable or high taxable gains (from sale of business, stock vesting, etc) for whom maximizing loss harvesting would result in tax savings
Client likely to desire gifting from the portfolio

How to employ the Strategy

As a Registered Investment Advisor, you can hire Advisor Partners as Separate Account Manager on many of the popular platforms and at most of the major custodians. You can choose to hire us as a subadvisor or as a fully disclosed Separate Account Manager – we are flexible to your needs.

Please contact us for a complementary Diagnostic and Recommendation on any portfolio for which you would like to see an example of the strategy for a specific case.