7258 Managers

7258 Wealth Management has partnered with Aperio, Dimensional Fund Advisors (DFA), Parametric and Vanguard for the management of a significant portion of our clients’ assets.

Our partnerships with Aperio and Parametric give 7258 the ability to offer Separately Managed Accounts (SMA’s) that benefit our clients in a number of ways. Aperio, Parametric and 7258 can:

  • Create custom, index-like portfolios which actively harvest tax losses;
  • Diversify concentrated single-stock exposure in a thoughtful, tax-efficient manner;
  • Offer a Socially Responsible Indexing/ESG (Environmental, Social and Governance) solution that is tailored to our client’s desires;

The SMA structure allows Aperio and Parametric to customize each portfolio, actively harvest losses and defer capital gains; this combination can add a considerable amount of “tax alpha” without introducing undue risk. Aperio and Parametric are perfect complements to 7258’s focus on maximizing after-tax, after fee returns.

The following publications provide more insight into Aperio and their philosophy:

  • ETFs vs. SMAs – A Users Guide. . This article sheds light on Aperio’s process and the many advantages of using SMA’s for actively harvesting losses in client portfolios. ETF’s can be very tax-efficient; Aperio’s approach is even better. The benefits to clients are eye-opening and are a result of disciplined, repeatable processes. |  View PDF
  • Measuring the Risk Impact of Social Screening – we have clients who have asked us to tailor portfolios to their specific Environmental, Social and Governance objectives. This article dives into the topic of managing risk as a result of the screens the clients put in place. Many think that Socially Responsible Investing comes at a cost – lower returns with more risk; Aperio discusses why this isn’t necessarily the case. |  View PDF
  • What Would Yale Do – Yale’s Endowment is hailed by many as the benchmark by which all portfolios should be measured. This Aperio publication delves into what Yale’s Endowment would do if it was a taxable entity. Aperio demonstrates “the profound impact that taxes can have on optimal portfolio weights as well as the interplay between taxes and risk.” The results may be surprising – especially to those taxable investors who have portfolios that look a lot like Yale’s. |  View PDF

The following publication provides a brief overview of Parametric’s robust capabilities. |  View PDF

DFA’s track record, low-fees, thoughtful tax approach, and low turnover are a perfect complement to our desire for enduring philosophies that benefit our clients.

The video below gives us a look inside DFA. It is well worth the time to get a feel for the company, their approach, and its founding. While 7258 Wealth Management hasn’t begun to earn the right to be mentioned in the same breath as Dimensional Funds, the parallels are interesting. Basically, David Booth’s ideas were based on the research of Eugene Fama and Kenneth French. Booth built Dimensional Funds into one of the top money managers in the world while Fama and French continue in the world of academia. In the case of 7258, Eric Holt will leverage the research of Drs Fraser and Jennings in the hopes of building a very different firm based on our Objective Asset Allocation Process. For Booth, the money management approach was the difference; for 7258, the differences are the Objective Asset Allocation Process and transformation of client objectives into separate, customized portfolios.

We would encourage you to take the time to get to know Dimensional Funds by reading their publications.

  • Evolution of Dimensional – provides a look back at the academic foundation of the company, provides some color on the early research and the resulting impact on the company’s approach…which still is in use today.  |  View PDF
  • Mutual Fund Landscape – this is a must read and provides much of the evidence for Dimensional’s approach; if the reader is short on time, this is the document they should focus on.  |  View PDF
  • Certainty Principle – despite our best efforts, we have seen clients fall prey to the principles discussed in this article.  Investing is counterintuitive – to make money over the long run, you need to be willing to buy when things are bleak and sell when markets are strong.  Stocks are the only thing people buy less of the cheaper they get.  |  View PDF
  • Heat of the Fire – gets at the emotional struggles investors face in declining markets…which is when their true risk tolerance is revealed.  The 7258 Wealth Process is designed to provide peace of mind that the client’s most important goals are the most conservatively managed…which ideally makes these fire drills moot.  |  View PDF
  • Greatest Hits – this could easily have been called 7258 Wealth Principles; details the timeless lessons investors learn over and over again.  |  View PDF

Vanguard’s lower cost, more tax efficient structure is a perfect complement to the other managers we use. Vanguard’s unique ownership structure is perfectly aligned with 7258’s “Client first, no conflict” mindset. The video below will give you a brief introduction to Vanguard.

We utilize Vanguard Mutual Funds and Exchange Traded Funds in our client portfolios. We utilize Vanguard within our equity and fixed income portfolios.

The publications below provide more insight into the Vanguard mindset.

  • Lower costs are part of Vanguard’s DNA – Vanguard’s unique ownership structure benefits clients.  |  View PDF
  • Key principles for investing success – establish your goals, diversify globally, keep costs low and stay focused on the long-term.  |  View PDF
  • Indexing: The Long-Term View – the vast majority of managers underperform index funds and cost differences compound over time.  |  View PDF

While we have partnered with DFA and Vanguard for the management of significant portions of our client assets, we will regularly assess whether they provide portfolios that give us the most effective exposure to the each asset class. We will stay open-minded and will scrutinize other passive approaches, active managers and alternative investments.

Contact us today to get started

Office Address:

730 17th Street, Suite 107
Denver, CO 80202

ph:  303.633.5910
f:  303.860.8956
email:  info@7258wealth.com