At Mercury Investment, each client is invested in an individual portfolio of stocks registered in their own name at a custodian of their choosing. The list of stocks in each client’s portfolio will be largely identical but the weightings will differ slightly based upon market prices at the time of purchase. We utilize a core strategy of 38 – 45 US Large Capitalization Equities. We do not focus on any particular sector exposure but focus on the specific niche that each equity position fills in our main investment themes.
Mercury’s Demographic Growth Strategy has also been tax efficient, with low annual turnover averaging 3% and qualified dividends representing over 95% of annual income. Historically, the portfolio has had favorable tax efficiency because stocks sold for a gain have been held longer that a year and were subject to favorable capital gains tax rates. Tax efficiency is a secondary concern. We make our investments based upon very specific criteria and will sell when our methodology tells us to without taxes considering into our sell decisions. As is the case, income tax rates are subject to change.