Investing for Americans living abroad doesn’t have to be a headache.
Just as many firms are shying away from working with U.S. expats, we have embraced the complexity. We have a deep understanding of the challenges and intricacies of investing for Americans living abroad.
Whether you plan to spend a few years, a few decades, or the rest of your life outside the U.S., we can deliver a comprehensive cross-border investment plan for you and your family that can move with you wherever life may take you.
What Are the Challenges?
As a U.S. citizen, you are in the unenviable position of being taxed on your worldwide income and gains. This simple fact causes many challenges for Americans when trying to build a thoughtful investment plan.
- How do you design a portfolio that can meet your risk and return objectives with only a limited array of available investment options?
- How do you invest in a tax efficient way that stays compliant with the ever-changing tax laws and regulations in multiple jurisdictions?
- How do you manage your currency risk in order to meet your financial liabilities in the future?
How We Invest for Americans
We are an investment firm, first and foremost. We have developed our offering for U.S. expats to enable us to build customised portfolios that are tax efficient across borders without compromising on investment quality.
Direct Equities and Bonds
We build concentrated portfolios of direct equities and bonds, leveraging our large internal investment research resource.
U.S. Mutual Funds with Foreign Resident Access
All clients have access to our wide range of U.S. mutual funds. Unlike most firms, Brown Advisory permits foreign resident investors into our mutual funds. Additionally, for those living in the U.K., our entire mutual fund range has HMRC reporting status which allows them to be owned tax efficiently for U.K. and U.S. taxpayers.
- Eight internal active equity strategies supported by over 30 analysts and portfolio managers.
- Seven internal fixed income strategies supported by over 15 analysts and portfolio managers.
- Five subadvised equity strategies – giving clients access to top third-party managers across the U.S., Europe, Emerging Markets, and Japan in an expat friendly Brown Advisory mutual fund wrapper.
Foreign Funds with PFIC reporting
As a general rule of thumb, U.S. expats should avoid investing in PFICs (Passive Foreign Investment Companies). However, we work with select foreign third-party managers to provide PFIC Annual Information Statements, which allow U.S. investors to avoid the otherwise punitive taxation.
A Flexible Relationship
We firmly believe that a sound investment plan considers all your assets in a consolidated and holistic way. Whether you have assets located in the U.S. or abroad, we can manage your assets across multiple U.S. and foreign account structures. This includes personal accounts, IRAs, ISAs, SIPPs, offshore trusts, family foundations, and many more.
Importantly, all portfolios are built to be fully portable should you decide to move, and can be managed from London or any Brown Advisory office. We are custodian-agnostic and have numerous custodial relationships in the U.S. and internationally.
Multi-Currency Tax Reporting
We produce tax reports in Sterling and Dollars for all U.S. connected clients. We work closely with their tax advisors to deliver the information they need in an accurate and user-friendly manner.