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Q Why use an investment advisor? A In today's markets, investment success demands constant monitoring, careful planning and an extensive knowledge of how countless economic indicators and investment vehicles are performing. Most individual investors lack the computers, data and time for all this work. So, they wisely turn to a professional who has the expertise and specializes in investment advice. Q What kinds of investments would be in my account? A A successful investment strategy creates a balanced and diversified portfolio. Today, mutual funds are the best way to achieve these goals. Most of our clients' assets are invested in mutual funds composed of stocks, bonds, convertibles, sector funds and international securities. The first step in structuring a portfolio is collectively determining a client's investment objectives and risk tolerance obtained in the information you provide in the "Confidential Questionnaire". Next, using this information, we invest your assets to specifically meet your investment goals using mutual funds. Q If mutual funds are a good investment, why can't I buy them directly? A You can. But while mutual funds may once have been a simple choice, today things are more complex. There are now an estimated 8,000 equity, income and money market funds. Few individual investors possess the time, energy and expertise to study and evaluate all the possibilities and make the right choices. It's a job for the professionals. Q What about buying funds through a broker? A Remember that brokers are compensated by commissions- and often have an incentive to push a particular fund. We are compensated only by management fees and have nothing to gain by promoting a specific fund. Our decisions are made solely on the basis of the fund's performance, investment strategy and potential. Q What are your fees and when are they paid? A Our management fees are billed to your account one quarter in advance. Quarterly fees are based upon the value of your account at the beginning of each quarter. The fees are billed at the beginning of each quarter at the following rates: MUTUAL FUND ACCOUNT FEE SCHEDULE Market Value of Account Quarterly Fee Percentage $ 50,000 & Below 0.500 percent $ 50,001.00 to $ 100,000.00 0.437 percent $ 100,001.00 to $ 500,000.00 0.375 percent $ 500,001.00 to $ 1,000,000.00 0.313 percent $ 1,000,001.00 to $ 2,000,000.00 0.250 percent $ 2,000,001.00 to $ 5,000,000.00 0.188 percent $ 5,000,001.00 and over 0.125 percent
SHORT TERM STOCK TRADING ACCOUNT FEE SCHEDULE Market Value of Account Quarterly Fee Percentage $ 50,001.00 to $ 100,000.00 0.750 percent $ 100,001.00 to $ 500,000.00 0.500 percent $ 500,001.00 to $ 1,000,000.00 0.437 percent $ 1,000,001.00 to $ 2,000,000.00 0.375 percent $ 2,000,001.00 to $ 5,000,000.00 0.313 percent $ 5,000,001.00 and over 0.250 percent The percentage of assets allocated to each account type is listed in the Confidential Questionnaire & Instructions which accompanies this Agreement. Fees may be negotiated at a different rate than listed above under certain circumstances.Q Do your fees depend on the activity in my account? A No. Management fees are based on the total value of your account (or accounts) at the start of each quarter. Our goal is to keep activity in each account to a minimum. We have no incentive to "churn" or rapidly buy and sell assets in clients' accounts. If we have any incentive, it is performance- since our fee increases only if we increase the value of the client's total assets under our management. |
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