Frequently Asked Questions
Q: Will Breckinridge work directly with individuals?
A: Breckinridge primarily works through other investment professionals. This allows greater efficiency and enables Breckinridge to stay focused on managing municipal bond portfolios. Individual investors are welcome to contact us for the names of participating consultants.
Q: Where are client assets custodied?
A: Breckinridge has custodial relationships with a number of national and regional institutions and is open to establishing new custodial relationships when circumstances warrant.
Q: How is Breckinridge compensated?
A: Breckinridge is a fee only advisor and receives absolutely no compensation from trading. Fees are based on a percentage of assets and are billed to the clients account either directly or through the consultant.
Q: What is the minimum account size?
A: Please contact Breckinridge for information on account size requirements.
Q: How much trading is there in a portfolio?
A: Portfolio turnover can vary significantly, but usually averages between 20% and 30% annually. Trading tends to be greater when rates are rising, as opportunities to build a portfolio’s income stream are more prevalent. Our reluctance to recognize capital gains reduces portfolio activity as rates are declining.
Q: Will Breckinridge accept existing fixed income securities?
A: Yes. When Breckinridge assumes management of an existing portfolio, every effort is made to restructure the portfolio in a tax efficient manner.
Q: Is Breckinridge a broker/dealer?
A: No. Breckinridge is a Registered Investment Advisor and does not sell proprietary product. Bonds are purchased and sold through an extensive network of institutional bond dealers to ensure that the client receives the best execution.
Q: Can I speak with a representative of your firm regarding my client’s portfolio?
A: Yes. While the client’s investment consultant is the primary contact we encourage questions regarding the management of the portfolio.
