Benefits of broad exposure
Galleon Core accounts provide exposure to a variety of securities (stocks, bonds, commodities) that creates the correct balance of investments without the risk of being overly diversified. This helps you remain focused on a smaller selection of securities that have been analyzed and selected by investment professionals.
Advantages of tax efficiency
When stocks are bought and sold in mutual funds or ETFs, it creates a tax liability that is passed on to the investor at the end of the tax year. Core accounts are designed as long-term investments. This means the portfolio manager does not make frequent changes in the account. The result is a more tax-friendly investment portfolio that keeps more money in your pocket.
The value of low costs
Galleon Core makes investing more affordable. Unlike mutual funds or ETFs, we do not charge an expense fee, and our annual management fees range from 0.0% to 0.04%. This keeps costs under control, which can result in greater savings as you build more wealth over time.
The importance of a sound strategy
Galleon Core portfolio managers have a number of different investment strategies they employ to develop and maintain the portfolio, all of which primarily focus on long-term investing. Cash from dividends, interest, and options premiums are reinvested (compounded) annually.
The effects of diversificaton
Diversification is an important part of investing success. But holding too many positions in your portfolio is equally detrimental as is holding too few. Galleon Core takes the ‘less-is-more’ approach to diversification by deeply analyzing the securities in the portfolio and selecting which to include based on criteria that are both logical and manageable.
Some commonly asked questions about Galleon Core
Yes. The instruments in which you will invest are marketable securities, which almost always fluctuate in value. Even if you have invested in U.S. government bonds, the market value of the underlying bonds changes in response to various external factors, such as changes in interest rates. Stocks and ETFs also change in value, as do all other types of investments.
The best way to compare Core accounts to mutual funds or ETFs is to think of Core as a selection of low-fee, tax-efficient, diversified sub-accounts that, when grouped together, have the potential to create an entire investment portfolio, but without the added expense fees, additional 12b-1 fees, or other related fees.1 Most importantly, Core accounts are model portfolios developed, maintained, and managed by a registered investment firm, not a mutual fund company. This means we have a fiduciary responsibility to always do what is right for the client.
Asset classes represent different segments of the economy and the financial markets. For example, the taxable bond asset class is comprised of debt securities such as U.S. Government bonds and Corporate bonds, whereas the international equity asset class includes stocks of publicly traded companies that are not based in the United States.
Similar to mutual funds, which are frequently offered in different share classes, Core accounts have objectives, management, and underlying investments that are identical across all classes. The primary difference is in the costs to you. Unlike mutual funds, which have different expense ratios and other fees that are unrelated to the direct management of the fund, such as 12b-1 fees, Galleon Core accounts have 0.0% expense ratios and no such fees. This simple fee structure was developed by Global Advisers with investors in mind.
- Keeping your costs under control – greater cost savings can help you build more wealth over time.
- Making investing more affordable for everyone- Galleon Core accounts combine 0.0% expense ratios with low management fees and 0.0% 12b-1 or other hidden fees.
- Expense ratios that are, on average, 100% lower than mutual funds or ETFs with comparable characteristics.
- Low turnover ratios for enhanced tax efficiency.
Galleon Core accounts are for investors who seek a low-fee option to invest in the stock, bond, and commodity markets, and do not seek additional services such as financial or estate planning, wealth management services, managed philanthropy, or retirement planning. Investors in need of these types of services should contact us to talk about our comprehensive wealth management and financial planning services.
Core accounts are managed differently than full-service, actively managed accounts in that Core accounts are rebalanced annually; do not qualify for margin trading; and do not include hedge funds, US Spot Gold, futures, options on futures, derivatives (except covered call writing), and metals.
Core accounts are available for IRAs, individual accounts, business accounts, and trust accounts.
- All portfolios are equal-weighted(unless otherwise stated).
- For the purpose of demonstration, all portfolios assume a starting balance of $10,000 U.S.
- Many Coire accounts have a minimum investment of $1,000 U.S.
- Portfolios with a launch date of fewer than 5 years are backtested.
- Trailing return and volatility are calculated as of the last full calendar quarter excluding management fees; portfolio income is rounded down to the nearest $1 unless otherwise noted; and the US stock market (S&P 500) is used as the benchmark for calculations unless otherwise noted.
- Value-at-risk metrics are based on monthly values.
- Not all stocks pay dividends, which is reflected in the TTM Yield.
- Significant effort is made to ensure that asset allocation models are in line with account summary, but not always possible.
- Market capitalization data is based on the rescaled long position of the equity holdings.
- Sector data is based on the rescaled long position of the equity holdings.
- Return attribution decomposes portfolio gains into their constituent parts and identifies the contribution to returns by each of the assets.
- Risk attribution decomposes portfolio risk into its constituent parts and identifies the contribution to overall volatility by each of the assets.
- Annualized rolling returns are based on a 36 or 60-month cycle.
