Callan Family Office Launches Tax Overlay Management Program for Ultra-High-Net-Worth Clients The new offering gives Callan Family Office and clients greater control over the complex tax implications faced in UHNW portfolio management.
PHILADELPHIA
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November 07, 2024 09:03 AM Eastern Standard Time
Callan Family Office, a registered investment advisor serving ultra-high-net-worth families, family offices, foundations and endowments across the United States, recently launched a technology-enabled Tax Overlay Management Program developed to maximize after-tax returns for wealthy families.
The program empowers Callan Family Office’s investment partners to make personalized, tax-aware trading decisions in client portfolios instead of outsourcing portfolio implementation to third-party asset managers with a partial view of clients' assets. This gives clients greater control over the size and timing of capital gains taxes in their portfolios and optimizes outcomes across complex ownership structures, with CFO investment partners using firsthand knowledge of each family's overall financial situation to deliver a tailored solution for equity portfolio management.
“The partners of Callan Family Office have worked with ultra-high-net-worth investors for decades on average, and minimizing taxes on investment gains is a priority for the families we serve,” said Jack Ginter, Chief Executive Officer of Callan Family Office. “With our new Tax Overlay Management Program, we’re leveraging technology and our expertise to help our clients grow and preserve wealth across generations.”
The Tax Overlay Management Program integrates model delivery of third-party active strategies, direct indexing, and a household-level view of assets to coordinate and optimize trading across the many active and passive Separately Managed Accounts (SMAs) that span a typical multi-generational UHNW portfolio. Potential benefits of the program for UHNW families and family offices include:
- Greater control over capital gains: Model delivery of active strategies gives Callan Family Office portfolio managers greater control over when and how capital gains are realized, while direct indexing accounts can be leveraged to make active strategies more tax efficient.
- Lower investment expenses: The program reduces costs for both active and passive management by reducing third-party trading and implementation expenses.
- Multi-Account and Entity Optimization: Coordinating activity across multiple accounts and entities adds value by identifying tax efficiencies that are not visible when accounts are viewed in isolation.
Partnership with Aris Investing
This capability is made possible by the technology of Aris Investing LLC, which powers the Tax Overlay Management Program with sophisticated portfolio optimization, scalable and secure infrastructure, and the tools needed to customize portfolio outcomes for ultra-high-net-worth investors.
Aris is a configurable investment technology platform that enables Callan Family Office to meet the specific needs of its UHNW clients.
“Aris solves the challenge wealthy families face when rebalancing accounts with complex ownership structures and a mix of active and passively managed SMAs,” said Daniel Burke, investment partner at Callan Family Office. “By utilizing its technology, we can optimize portfolio transitions by managing the transfer of highly appreciated securities between direct indexing accounts and active strategies to avoid triggering taxable events. Additionally, we can directly employ tactical tax-loss harvesting and optimal tax lot selection during portfolio transitions, minimizing capital gain impacts when changing active managers or rebalancing manager allocations.”
Callan Family Office has taken a strategic equity stake in Aris Investing to ensure that the Tax Overlay Management Program and Callan Family Office will evolve to meet the sophisticated needs of UHNW families for years to come.
About Callan Family Office
Independently owned and operated, Callan Family Office was founded by experienced wealth professionals to provide investment management, thoughtful personalized advice, and holistic financial planning to ultra-high-net-worth families, family offices, foundations, and endowments. The firm's principals have spent their careers serving ultra-high-net-worth clients, family offices, and institutions. Callan Family Office has agreements with Callan LLC to use the Callan® tradename in providing investment advisory services to the ultra-high-net-worth market segment and to access Callan's institutional quality research, education, and investment guidance experience. Callan Family Office and Callan LLC are independent, unaffiliated investment advisory firms separately registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940.
Callan Family Office (CFO) is the exclusive trademark licensee of Callan LLC. Callan LLC provides products and services to CFO. Clients of CFO are not clients of Callan LLC, and the parties are not affiliated. CALLAN, CFO and the other Callan trademarks and service marks are registered and/or unregistered trademarks of Callan LLC and may not be used without its permission. INVESTMENT ADVISORY SERVICES AND PRODUCTS PROVIDED TO CLIENTS OF CFO ARE PROVIDED SOLELY BY CFO AND NOT BY OR ON BEHALF OF CALLAN LLC. REPRESENTATIVES OF CFO ARE EMPLOYEES AND AGENTS OF CFO AND NOT EMPLOYEES OR AGENTS OF CALLAN LLC.
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