- All new clients must complete our standard new client enrollment process which will include a unique Client Agreement for Oxford Club subscribers as well as a suitability questionnaire.
- Any new buy/hold rating changes and/or safety Switch Alerts will be applied to each portfolio the day following an email alert was received from the Oxford Club.
- Additional funds added to an account will be allocated by spreading the additional funds across all holdings at the account’s current weights. Withdrawals will be accomplished in a similar manner.
- The custodian provides completed IRS tax form 8949 for taxable accounts.
- Transfers of existing holdings will be immediately rebalanced to the current positions held in the model portfolio.
Additional Rules for Tax Favored Accounts
Unless advised otherwise, all tax-favored portfolios will be linked to Model #1 which is designed to keep the portfolio fully invested using all of the recommendations provided by the Oxford Club subject to the 4% maximum position size recommended by the Oxford Club.
For example, if there are 33 different buys on the Oxford list, each investment will hold a weight of 3% and 1% will be allocated to cash. Alternately, if there are only 20 buys on the list, each stock or ETF will account for 4% of the portfolio and 20% will be allocated to cash.
Stocks that exceed the 4% maximum position size will be sold down to that level each time an investment is added or deleted from the portfolios or anytime when one or more positions exceed 5%.
At account startup, client accounts will be invested at the current position weight of the model portfolio.
Additional Rules for Taxable Accounts
Model #2 is primarily designed to minimize capital gains taxes while maintaining enough cash in the account to invest in all of the recommendations provided by the Oxford Club over the course of a year. In order to accomplish this, the following portfolio trading rules will be adhered to:
- At account startup, each “buy” rated stock will be purchased with an initial 3.75% allocation. Stocks listed as “holds” will only be purchased if and when they are subsequently moved to a “buy.”
- Accounts will only be rebalanced annually to bring selective holdings back down to 3.75% maximum, or alternatively, at any time when there is insufficient cash to accommodate a new purchase recommendation.
This portfolio management strategy is designed to allow for the client to be invested in all current and future Buy-rated recommendations while minimizing taxable events or requiring subsequent infusions of cash. The result of this could mean that there will be times where the account will be holding a larger allocation of cash than the Tax-Favored accounts.
