Q: What do I need to do in order to begin my account with Dover?
Q: What are the advantages of using a money manager over a mutual fund?
Q: What if I do not wish to hold certain types of stocks (e.g., tobacco or defense)?
Q: If I need to withdraw money from my Dover account, how do I go about it?
A:Dover, a Registered Investment Advisor with the United States Securities & Exchange Commission, handles all investment decisions for your portfolio including asset allocation, security selection and monitoring daily market activities. Dover and your broker/consultant handle all daily maintenance and account balancing to ensure your portfolio’s security and accuracy.
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Your stock and bond holdings within your portfolio will trade on major U.S. market exchanges and therefore will need to pass through a registered brokerage house. If you have a stock broker, Dover can direct all trades through him or her and your assets are custodied by that brokerage house. If you prefer, you can also select a bank trust department as your custodian. If you need to retain a broker, Dover has long-established relationships with brokers across the United States.
Next, you will need to give Dover Partners authorization to begin management of your portfolio by signing an Investment Advisory Agreement along with the completion of the associated paperwork of your custodian.
Do not send money directly to Dover. To begin your account, all of your funds and securities must be held at a third party custodian (e.g., brokerage, trust department, etc.) selected by you.
No Forced Redemption of Your Holdings
During market declines, many mutual funds are forced to raise cash for customers wishing to redeem their shares. For example, during the crash of 1987 mutual funds were forced to liquidate stock and bond holdings to raise cash, for fund redemptions, not because the managers felt they they were bad investments. Being forced to sell when the general market is down, the fund is most likely taking losses. In addition, the lack of cash within the fund as a result of these redemptions prevents mutual fund managers from purchasing quality investments at lower prices. If you had been in this mutual fund and decided to “ride out” the rough spots in the market, your investments would still be affected by the previously listed negatives.
A Dover portfolio is yours and yours alone. You are unaffected by other investor’s bad timing decisions. Many times, instead of selling, Dover can increase your market share by purchasing high quality investments when prices are less expensive.
When you buy shares of a mutual fund, you also purchase any existing tax liability in that fund. For example, if you decided to buy shares of a mutual fund in November, you would be responsible for paying capital gains tax on the fund’s entire year’s worth of gains (from January to December), not just your personal gains realized since you joined the fund in November.
A personally managed account with Dover Partners offers you several tax-related advantages over mutual funds. First, you pay taxes only on those gains your personal investments have realized; not anyone else’s. Second, Dover strives to reduce your capital gains taxes by selling appropriate issues that will produce offsetting capital losses.
In a mutual fund, you are typically one investor out of thousands. “Service” is normally nothing more than a statement in the mail. Dover offers much more! We provide you with:
A:Not a problem. Dover works hard at being one of the most service-oriented money management firms in the industry. We can implement investment restrictions in your portfolio which will prevent investing in securities you find socially undesirable.
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