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Management

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Investment Management 

The Company provides investment management on a discretionary basis for respective clients by designing tailored investment solutions.

Based on the pre-advisory consultations with the client to determine his or her investment objectives, risk tolerances and time frames, a tailored investment strategy will be implemented.  Such investment strategies are heavily weighted toward investing in “A+” rated stocks with companies that have demonstrated the ability and commitment to out-perform their peers within their respective industry.  Other considerations include: economic conditions, earnings, industry outlook, politics (as it relates to investments), historical data, price-earnings ratios, dividends, general level of interest rates, company management, debt ratios and tax benefits.  The Company will analyze these companies who have met these stringent requirements prior to purchasing such investments for a client’s portfolio.

Investment services are offered to clients under separate management arrangements depending on his or her investment needs and qualifications.  The Company’s investment services are described in greater detail along with their fee schedule, management requirements, and refund and termination provisions as follows: 

Managed Accounts 

Managed Account services focus primarily on wealth accumulation and capital preservation.  The Company uses equities and equity derivatives (i.e., convertible preferred stock) to facilitate its investment strategies.  The Company has authority to change the allocations of said securities at any time without the consent or advice of the client.

Fee Structure for Managed Accounts


The standardized fee structure below presents the annual percentage charged for portfolio management provided on an asset-based fee arrangement.  The fee for a quarter is one fourth of the annual applicable percentage multiplied by the aggregate market value of the assets in the account on the last business day of each calendar quarter.  The fee schedules are as follows:

Equity and Balanced Portfolio Accounts

    Account Balance                              Fees

                  $250,000 up to $2,000,000...................2.00%

                  $2,000,001 up to $5,000,000................1.00%

                  $5,000,001 up to $10,000,000..............0.80%

                  Amounts over $10,000,000..................0.60% 

The Company requires a minimum initial investment of $250,000 to open a managed account.  This minimum may be waived for multiple accounts for the same client.

Billing


Each client is billed quarterly “in arrears” to account based upon the last day of the previous calendar quarter account value.  For the first billing quarter, if account is not opened at the beginning/end of a quarter, the fee will be based upon a pro-rata calculation of the aggregate market value of the client’s assets under management. 

Additional assets deposited into a client’s account during the quarter will not result in adjustments by the Company to a client’s bill unless such deposit exceeds $50,000.  Such deposit of this amount or greater require modifications and adjustments to a client’s investment allocation.  A pro-rata fee based upon the number of days remaining in the current quarterly period will be assessed to the client.

Fee Exclusions


The above fees are exclusive of any fees, trading commissions, service or account charges, and load or redemption charges that may be imposed by a custodian or broker/dealer.

Termination Provisions for Managed Accounts 

Client has five (5) full business days after entering into an advisor agreement, whether oral or in writing, in which to cancel and obtain a full refund. 

Either party at any time upon receipt of 30 days written notice may terminate services.  This allows the Company sufficient time to finalize transactions and enable the delivery of final statements and release of documents.  Upon termination, the Company shall be paid their fee through the date of termination and any balance of the management fee not used shall be refunded on a pro-rata basis.

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