MANAGING FOR AFTER-TAX RETURN

Traditional Wall Street firms are adept at creating activity that feeds their fee/commission model and the glory of short term comparisons. Yet, client assets are generally harmed by the higher costs, lost compounding from taxes paid too early, and are often robbed of the behavioral benefits laying in plain sight in the tax code. Segment uses a host of techniques to defer tax, or avoid it completely. Certain investment products, such as open-ended mutual funds and hedge funds, generally offer clients poorer tax treatment and higher fees than other choices. Other structures like ETFs, generally offer lower costs and far better compounding through reduced taxation related to their structural tax treatment. Segment uses these ETFs in client accounts, but also manages accounts with individual securities, both giving clients greater control over offsetting tax transactions and the option of using higher gain winning positions in sophisticated charitable giving endeavors. Beneficial tax management is often squandered through myopic management chasing fleeting performance and failing to see the larger picture.