MARCH 23RD -A MESSAGE FROM DAVE FULTON, CEO OF CLEARSTEAD – SPECIAL UPDATE: COVID-19

CLEARSTEAD IS FULLY OPERATIONAL

Employees are Working Remotely

We sent employees home this week, except for three or four employees whose work is considered essential under Ohio guidelines.  As we mentioned, we have a longstanding Business Continuity Plan that enables us to operate remotely.  Our systems are working seamlessly as we work physically apart from one another.

Client Meetings are Taking Place

Client meetings are taking place using various networking services.  In addition, we have strived to communicate with every client – both institutional and private client – and will continue to do so.

Daily Updates in Research Corner

We are writing a daily update called Research Corner, which has been well-received by clients.  Please let your Clearstead representative or me know if you would like to receive Research Corner.

TAX FILING AND PAYMENT DEADLINE NOW JULY 15

The IRS has extended the April 15th tax filing and payment deadline to July 15th, though many states and localities have not.  We are continuing tax preparation and planning efforts to file or extend returns by April 15th.  We are fully operational and can accept information electronically, by mail or from delivery services, so please continue to send us your tax data.

April 23 Roundtable Postponed

We have postponed our planned April 23 Roundtable, Private Investments: Growing Importance and Evolving Access, until later in 2020.

Zeroed-Out GRATs

Stock market declines and historically low interest rates present tax and financial planning opportunities.  We have been discussing Zeroed-Out GRAT’s (Grantor Retained Annuity Trusts) with several clients.  These GRATs are trusts that enable a grantor to transfer appreciation of an investment to beneficiaries and keep the underlying asset without using annual gift exclusions or estate exemptions.  The current low interest rate environment, along with lower asset values could make Zeroed-Out GRATs timely.

For many families the benefits of our financial and tax planning can be as valuable as skillful management of investments.  Our team is ready to discuss these opportunities.

Bolstering Investment Research

Aneet Deshpande, Chartered Financial Analyst, joined our firm this month as Managing Director and Chief Investment Strategist.  Recently, Aneet spent four years with PNC Capital Advisors as Chief Investment Officer managing $53 billion, including 18 mutual funds, 25 investment strategies and an array of customized investment solutions.  Aneet will oversee a large part of our Investment Research Team, which includes 14 professionals.

Investment Portfolios – Preparing for What’s Next

Where appropriate, we have been recommending that clients rebalance investment portfolios.  We are beginning to see particular opportunities in the spreads between investment grade and high-yield fixed income, and municipals bonds.  Increasingly, we believe it also may be timely for many clients to raise cash for future investments, increase equity investments, and allocate among different types of equity investments.  Our focus is shifting from coping with the immediate investment environment to looking for opportunities as markets and the economy climb out of this downturn eventually – we believe they could be substantial.

As always, we are grateful for your business.  Thank you for your support.

Information provided in this article is general in nature, is provided for informational purposes only, and should not be construed as investment advice. These materials do not constitute an offer or recommendation to buy or sell securities. The views expressed by the author are based upon the data available at the time the article was written. Any such views are subject to change at any time based on market or other conditions. Clearstead disclaims any liability for any direct or incidental loss incurred by applying any of the information in this article. All investment decisions must be evaluated as to whether it is consistent with your investment objectives, risk tolerance, and financial situation. You should consult with an investment professional before making any investment decision.

Performance data shown represents past performance. Past performance is not indicative of future results. Current performance data may be lower or higher than the performance data presented.