Callan Family Office, a $6.5 billion registered investment advisor established in 2022 by former Abbot Downing executives, has introduced a tax overlay management program aimed at maximizing after-tax returns for ultra-high-net-worth (UHNW) families. This program is supported by a collaboration with Aris Investing, a tech-powered SMA platform.
Daniel Burke, investment partner at Callan Family Office, shared that he has been addressing tax challenges for over 20 years. Previously, his team managed tax coordination manually across various active and passive investment strategies.
The new program enables Callan’s investment partners to make customized, tax-conscious trading decisions in client portfolios, rather than relying on third-party asset managers who have only a partial view of client assets. This approach gives clients more control over capital gains timing and optimizes outcomes across intricate ownership structures, leveraging Callan’s understanding of each family’s financial situation to offer tailored equity portfolio management.
To implement this program, Callan Family Office coordinated with its longstanding institutional investment partners to integrate model portfolios into the system. This required significant cooperation due to established relationships with the firm’s executives and Callan LLC, a prominent investment consulting firm.
Client involvement was also essential; the technology becomes more effective with detailed client tax preferences and goals. Callan also utilizes Addepar for data aggregation, analytics, and portfolio reporting, offering a consolidated view across multi-generational portfolios.
Aris Investing was Callan’s final partner for the program, with Callan even acquiring a stake in the platform to facilitate intellectual capital exchange. Aris processes tax data, active manager holdings, and client-specific parameters to perform daily tax optimization, with Callan’s investment partners making the final implementation.
Burke noted that uncoordinated investment strategies previously led to tax inefficiencies. With this new overlay technology, they can strategically route and time trades to minimize these inefficiencies.
Callan Family Office was founded by Jack Ginter, former president of Abbot Downing. Seeking to create an independent wealth management firm that offers personalized service for UHNW clients, Callan partnered with Callan LLC for institutional investment insights while maintaining independent SEC registration, ownership, and management.
