Why do I need an Investment Manager?
To simplify and enhance your life, yet maintain the unique financial goals you have for it by leaving its management to professionals. Our staff has focused their careers on studying financial planning, asset class diversification and the financial markets so that our clients can feel comfortable knowing that they are working with a reputable firm that is capable of handling a variety of individualized needs while offering excellent customer service.
How does the relationship with Brackenwood Capital Management work?
We first design an individual investment policy and comprehensive financial plan. This is the primary tool in implementing a proper portfolio allocation and tax efficient investment strategy for each client. We work with our clients every step of the way to make sure they are comfortable with the investment process and approach.
After the initial investment steps are completed, the client can expect periodic investment management review meetings on at least a semiannual basis. This is when and how we hold ourselves accountable for achieving the investment goals that we have mutually agreed upon within the investment policy. Our clients also receive quarterly written communications including performance reporting on their accounts and will be contacted frequently by staff with pertinent information on their accounts.
Clients can expect a diligently consistent, active approach to their investment management. This means that while we believe in the investment vehicles that we select, there is no static solution for a client at all times throughout our entire relationship. In short, we are always looking at alternatives that may best fit a particular client. We encourage contact by our clients, but respect their privacy by maintaining each client’s predetermined wishes for client-advisor contact.
Why should I trust Brackenwood to manage my investments?
Our goal is to make our clients comfortable with us as their manager. To ensure this we have adopted strict compliance policies and procedures which are monitored by experienced FINRA and WA-state securities compliance officers. As part of these policies we do not engage in full custody of client accounts, but rather only limited power of attorney. This means we do not have direct access to your funds, but are only able to bill from custodial accounts based upon what clients have agreed to within their unique investment policy statement. These custodians are also FINRA- and SEC-regulated institutions required to follow strict procedures regarding client account access. Furthermore, we do not engage in activities which we believe would produce a conflict of interest with our clients. We do everything we can to ensure the safety of our clients' assets and to protect the sanctity of their trust in us.
What happens to my existing portfolio?
As part of your investment policy statement drafting process, your portfolio manager will meet with you and get a comprehensive view of your risk tolerance, financial needs, lifestyle goals and tax sensitivity. We will use this information to determine an effective plan for transitioning out of your current investments. We always communicate to you the strategy employed in attaining your new asset allocation before implementing the initial changes, so that you can feel comfortable with the transition of your accounts. This is not only a standard registered investment advisory practice, but what we have found to be the surest means of maintaining a productive relationship with clients.
BCM also directly consults clients who simply wish or must maintain their accounts (401-K) at existing custodians. Over time BCM has effectively served as clients’ “third-party” investment management resource within this overall leaner working arrangement, where advisory fees are customarily billed from outside accounts on an hourly-fee basis.
How does Brackenwood get paid?
We believe high investment expenses are one of the largest obstacles to successful investment. Brackenwood uses an asset-based (“AUM”) fee system in which we earn a percentage of assets under management. This motivates us to make investment decisions that help your account grow rather than engage in practices that have been traditionally expensive and performance lowering, such as trading unnecessarily in order to earn commission dollars. Brackenwood is committed to providing our clients with excellent service at an excellent value.
In many cases an hourly fee-basis is more appropriate for our client relationships. This is most commonly part of advisory where the client simply wishes or must keep his/her investment funds inside of their existing account/custodian, but access our investment management direction. BCM’s Form ADV Part 2, which provides a full description of firm fee process, is available upon request.
How does Brackenwood address taxes?
We are continuously reviewing not only each investment vehicle we choose but each client's account as well to make sure that tax efficiency is being achieved. We choose the most tax efficient investments we can find and will frequently review accounts in order to harvest losses to offset gain. We communicate with our clients often so that we are kept up to date on their tax and lifestyle situations in order to help us effectively manage the tax efficiency of their portfolios.