Configuration Guide - FSP Tax Management
The Fund Strategist Tax Management Service service allows a client to open an FSP Account under an FSP Program and control the tax cost of trading towards their selected FSP Product’s model holdings.
What is the Fund Strategist Tax Management Service?
• A service that allows a client to open an FSP Account under an FSP Program and control the tax cost of trading towards their selected FSP Product’s model holdings and weights.
• Without the Fund Strategist Tax Management Service, all funding assets are immediately sold and reinvested into the FSP Product’s model holdings without any consideration for tax cost.
• This immediate tax cost can be a significant impediment to Advisors & Clients moving to a managed account.
• The Fund Strategist Tax Management Service considers the tax cost, allowing clients a meaningful amount of control over the tax cost they incur initially and on an ongoing basis.
• Keep in mind, there is a tradeoff to incurring less tax cost, which is potential performance differences for your account versus your selected FSP Product.
• The balance between tax cost and deviation from the model is governed by the “Tax Sensitivity” the Client selects at account inception and can change at any time via Goal Modification.
Learn more in our configuration guide.