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What products do you offer?
We are a Large Cap Core Equity Manager with a style that is biased toward high quality companies. We primarily invest in large-capitalization domestic stocks and American Depositary Receipts (ADRs) with some exposure to mid-cap stocks (minimum market capitalization is $2 billion). Typically, a portfolio will hold 35 to 45 stocks across 10 industry sectors, such as financials, health care, and energy. We measure the performance of our Large Cap Core Equity product by the S&P 500 Index.
Numerous studies show that over time, dividends contribute significantly to the market’s total return. A growing dividend can also be a signal of financial strength and helps instill capital discipline in corporations. Our goal with this product is to build a portfolio with what we feel are high quality companies that have a history of paying and growing a dividend.
We are a core fixed income manager whose style is characterized as having a top-down and value-oriented bias toward building a high quality portfolio. We invest in U.S. Treasury and government agency bonds, as well as mortgage-backed securities and investment grade corporate bonds. We maintain an investment grade portfolio with a typical average maturity range in the intermediate (5-10 years) area.
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A tax-free, municipal bond strategy may be advantageous to individuals in the mid-to-upper marginal tax brackets (depending on their State of residence). In those instances, the taxable equivalent yield can frequently meet or exceed taxable, similarly rated, fixed income investments. We typically build our portfolios using the laddered approach, but keeping in mind current interest rates, and the future economic outlook. We tend to hold bonds to maturity rather than trade in and out of them.
In balanced accounts, the first decision is to determine asset allocation. We will work with the clients to either establish long-term asset allocation ranges and target guidelines for equity securities, fixed income securities, and cash equivalents, or with clients’ already established guidelines. We utilize high quality fixed income securities to reduce overall portfolio volatility and to provide for current income requirements. Stocks are used for capital appreciation. Back to Top
Do you offer other diversification as well?
ACF is a subsidiary of Waddell & Reed Financial, Inc. For those clients needing additional diversification beyond our large cap core equity and fixed income strategies, ACF is able to offer certain investment products offered by an affiliate within the Waddell & Reed organization. Back to Top
Will you develop an investment plan for me?
Yes. After meeting with you to determine your risk, tax, and time horizon parameters, we will propose an asset allocation among equity, fixed income and cash investments. We are not financial planners; however, we would be happy to refer you to a Certified Financial Planner for a more in-depth plan. Back to Top
Do you provide Estate Planning?
No, but we can provide a list of local estate planning attorneys with whom we work with frequently. Back to Top
How often do you meet with clients?
ACF conducts periodic meetings with our clients at their discretion. We are quite flexible and consistently maintain clear lines of communication at all times. ACF likes to meet with each client at least yearly and more frequently if the client requests additional meetings. Back to Top
Do you publish a newsletter?
Yes, ACF publishes a quarterly letter. You can find a copy of these newsletters on our website under Quarterly Reviews, in our menu section. Back to Top
Where will my assets be custodied?
Your assets can be custodied with a custodian of your choice. ACF has established relationships with several custodians. We would be happy to assist you in your search for a custodian that fits your needs.
Bank/Trust Company: Accounts held at a bank or a trust company are charged a custody fee based on the amount of assets. Trades are executed through brokers that we have approved for trading. Commissions paid on trades are negotiable, but usually average 5 cents per share.
Brokerage Firm: If the account is held at a brokerage firm, the trades will be directed to that specific brokerage firm for execution. The brokerage firm determines commissions. The commission on the trades may be higher for those clients at a brokerage firm because they do not charge a custody fee. Back to Top
I am ready to discuss opening an account with ACF; whom do I contact? What documents do I need to open the account?
To open an account with ACF you first need to contact one of our Client Relationship Managers, who would be happy to meet with you personally. They will assist you with the necessary account data information to open the account with ACF and answer any questions you may have regarding our products and services. Please contact Claude Koontz at 210.353.0519 or 1-877-353-0500, ext. 519, or at ckoontz@auscal.com. Back to Top
Will I have online access to my account?
Most custodians offer online access to your account; however, at this time you will not have access through ACF’s website. Back to Top
Do you provide the gain/loss information for preparing taxes?
Austin, Calvert & Flavin, Inc. will provide our clients with a gain/loss statement quarterly that can be used for informational purposes only. We serve as an investment advisor, and are not a custodian of clients’ assets. The custodian of record for each client reports directly to the Internal Revenue Service by Form 1099. Back to Top
Is my information confidential?
ACF is committed to ensuring that its clients have access to a broad range of products and services to help them achieve their personal financial goals. In the course of doing business with ACF, clients are requested to share financial information and they may be asked to provide other personal details. Clients can be assured that ACF is diligent in its efforts to keep such information confidential. Our formal policy for privacy is explained in more detail on our contract. Back to Top
How does ACF handle security litigation issues?
ACF has no responsibility for filing claims on behalf of our clients with respect to any class action, bankruptcy proceedings or any other action or proceeding in which the client may be entitled to participate by virtue of their past and present securities holdings. Our clients would need to contact the custodian of their assets directly regarding the filing of these claims on their behalf. ACF’s responsibility shall be limited to cooperating with the custodian of the assets in making such filings. ACF will collect the necessary data and provide it to the client, but we will not sign on behalf of the client. Back to Top
What is ACF’s record retention policy?
As a registered investment advisor, ACF is required to maintain various books and records on a current and accurate basis, which are subject to periodic regulatory examination. Back to Top
What is your minimum fee? What are your asset management fees?
ACF charges an investment management fee based on your assets under management at each quarter end. Our standard fee schedule is tiered by varying asset levels and depends on the type of account you have at ACF. For Equity & Balanced portfolios, ACF charges 0.75% on the first $5 million of market value. For Fixed Income portfolios, ACF charges 0.50% on the first $10 million of market value. There is a minimum annual fee of $7,500 per year – per account for all client portfolios. Related accounts are grouped together for billing purposes to achieve a better break point and thus a lower fee ratio; however, each account will be charged the $7,500 minimum fee per year. For ACF’s complete standard fee schedule, please click here.Back to Top
How am I billed for the investment management fee?
ACF bills clients in arrears on a calendar quarter basis. Depending on the client’s preference, quarterly invoices will be sent directly to the client or to their custodian to be debited from their account. If a client wishes to have his/her quarterly fee debited from their portfolio, they must provide their custodian with written authorization for the direct debit of ACF fees. Back to Top
What services will I receive for this fee?
Services for the fee include total investment management and supervision of the account, periodic personal meetings and quarterly statements of assets under management. In addition to meetings and quarterly statements, ACF also provides back office and trading support to ensure your account needs are met. These services include proxy voting, trade settlement, monthly account reconciliation, review and verification of stock dividends, interest payments, stock splits and other account activity. ACF employs expert trading professionals to ensure trades are executed in the most efficient manner possible. Back to Top
What does it mean to be GIPS verified? What is the difference between GIPS and AIMR-PPS?
GIPS, the Global Investment Performance Standards, are ethical standards used by investment managers around the world for creating performance presentations that ensure fair representation and full disclosure. Once a firm claims compliance with these stringent performance standards, a third party usually verifies the claim. Complying with GIPS is a voluntary commitment for individual investment managers; however, once a claim of compliance is made, the firm is then subject to scrutiny by the SEC and investment community. Even though GIPS is voluntary, it is quickly becoming the standard across the industry. AIMR-PPS ( Association for Investment Management and Research – Performance Presentation Standards) was the predecessor to GIPS here in North America. The AIMR-PPS standards were introduced in 1993 and since that time both investment management firms and investors have expanded their investing opportunities to reflect the globalization of the financial industry. After making several revisions to keep pace with globalization, including the introduction of GIPS standards in 1999, the CFA Institute has taken the final step to harmonize the AIMR-PPS and GIPS standards. Effective January 1, 2006, the AIMR-PPS brand has been dissolved. For more information on GIPS, please visit the CFA Institute website at www.cfainstitute.org.
ACF claims compliance with the Global Investment Performance Standards (GIPS®) from January 1, 1994 and our performance is verified quarterly by Dabney Investment Consulting Associates, Inc. Back to Top
We are located in the north-central area of San Antonio, in-between downtown and the airport, and just off of Highway 281 at the corner of East Mulberry and South St. Mary’s Street. Our office is located on the fourth floor in the McCombs Plaza Building.
755 East Mulberry, Suite 400
San Antonio, TX 78212
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