The investment needs of US-connected clients are complex and multifaceted. Our US team has the experience and supporting infrastructure to meet these needs. Whilst no two cases are quite the same, we have set out some of the typical tax and residence situations experienced by our clients. In most cases, our clients’ assets are held with our New Jersey-based custodian, one of the world’s largest, which provides safe custody and all of the necessary US tax reporting.
US citizens and Green Card holders resident in the UK
The dual tax reporting requirement for this group of individuals creates a challenging investment environment. If unattended to, this can result in complex and onerous tax charges as well as significant tax reporting costs. We have a deep understanding of investing in this environment and have formed investment strategies that are tax neutral in both the US and UK tax regimes.
We manage our US resident clients’ investments to be compliant with the US tax regime, holding US mutual funds, exchange-traded funds (ETFs) and direct equity positions. Our fund research team compiles a list of recommended US mutual funds based on our due diligence process.
US citizens and Green Card holders not resident in the US or the UK
We invest within the bounds of US and local tax jurisdictions to create suitable portfolios, working in conjunction with our clients’ advisers.
These portfolios generally consist of directly held equities and bonds, based upon our research department’s target portfolios. We often manage IRAs, UK pensions and UTMAs alongside our clients’ main investment portfolios, depending upon their individual needs.
US trusts and companies with US connections
We agree investment guidelines with the Trustees or Directors as part of the account opening process. These set out the range of suitable investments. Once established, portfolios are managed in line with these guidelines.