When an account is sleeved into a managed and non-model portion, we do not monitor or act on the non-model portion and would only invest cash from that sleeve when directed by the advisor to transfer it over to the managed account.
For Full Service / Direct Investment Management arrangements, our default is to NOT reinvest dividends. The exception to that is for accounts with recurring distributions set up. In that case, we don’t automatically reinvest dividends in an effort to maintain the appropriate level of cash needed for the recurring distributions with as little trading as possible.
For positions that are not managed by First Ascent, it is up to the advisor to notify us how they wish to handle reinvested dividends on those non-model assets.
For Investment Only / Sub-Advisory arrangements, we ask that the advisor sets up the accounts to NOT reinvest dividends at the custodian.
We do not provide tax advice, nor represent or guarantee that the objectives of our tax loss harvesting program will be met. Clients are advised to consult a qualified tax professional to determine their ability to claim losses based on their individual situations.
Our investment team monitors expected year-end capital gains distributions from each fund in our tax- sensitive portfolios. If a security is expected to distribute a significant capital gain, we may trade out of that position to avoid a taxable event.
Collected advisor fees are sent to the advisor’s bank via ACH with a target date by the 15th of month following quarter-end.