Common questions.
Answers to questions we hear most from prospective and current clients. If something is not addressed here, contact us directly.
Can you provide client references?
Client endorsements are available on request, subject to each client's permission. Any endorsement we provide will disclose whether the person is a current client and whether any compensation was paid, as required under SEC Rule 206(4)-1. Contact us and we will share what we have.
What is the expected annual portfolio turnover?
Annual turnover has averaged 1.6% over the life of the strategy. In a typical year we expect it to stay below 5%.
What steps do you take to minimize realized capital gains in taxable accounts?
Low turnover is the primary step. Beyond that, we pay attention to which tax lots we sell and look for opportunistic tax-loss harvesting, within the constraints of the wash-sale rules.
How tax-efficient is the strategy?
The strategy is managed for capital appreciation. Minimizing taxable gains is not the primary objective, but it is taken into account. Historically the portfolio has been tax-efficient because positions sold at a gain have generally been held longer than a year and taxed at long-term rates, while positions sold at a loss have more often been short-term.
Is Mercury a fiduciary?
Yes. As a registered investment adviser, Mercury is legally obligated to act in the best interest of our clients at all times. We do not receive compensation from third parties for recommending any product, security, or service. Our Form CRS Relationship Summary describes our fiduciary obligations and any relevant conflicts of interest in plain language.
How is performance measured and reported?
We measure portfolio performance against the S&P 500 Total Return Index as our primary benchmark, reported on a net-of-fee basis. Clients receive quarterly statements detailing holdings, returns, and attribution. We also publish aggregate composite performance on the homepage of this site, updated quarterly.
Where are client assets held?
Client assets are held in custody at Charles Schwab, an independent, SIPC-insured custodian. Mercury does not take custody of client funds. You receive statements directly from the custodian and can view your account online at any time. This structure provides an independent check on our reported performance figures.
How do I open an account?
The first step is an introductory conversation to confirm that Mercury is the right fit for your situation and goals. From there, we will send account opening documents electronically through our custodian. The process typically takes five to ten business days from signed agreements to funded account. Reach out through the Contact page to get started.
Still have questions?
We are happy to speak with you directly. Most questions are best answered in a brief conversation.