A diverse group of clients – individuals, families, foundations, institutions and other financial advisers – has retained us for our investment counsel and wealth management services. We seek to consistently provide a high level of service to each client – the success of efforts is reflected in the long term relationships we share with clients. We have two types of client relationships:
Wealth Management Clients
Wealth management is an intensive process that is highly customized to each client situation. Many of our clients have sought our counsel in the course of some sort of financial “event” – the sale of a company, the sale of a family asset or retirement after a successful career. Because of our varied experiences, we often are able to help clients navigate these events with financial advice gained from observation of or direct experience with similar situations.
Whether there was an “event” or just a decision that professional assistance is needed, we focus on making sure that our clients financial needs are handled in an organized, effective and risk-sensitive manner. We assist with establishing ownership in the appropriate entities/individuals, determining investment objectives, defining liquidity needs and planning for income, gift and estate tax considerations. Often we work directly with our clients’ legal and tax advisers in making sure that these and any other financial issues are properly addressed.
Investing for our wealth management clients takes all of these factors into consideration. Management of each pool of assets is guided by an investment policy statement we and our clients jointly develop. And, we report to our clients formally each quarter on the investment results, relative to market benchmarks and the specific objectives we have jointly established.
Because the wealth management process is so labor-intensive, we limit the number of wealth management relationships we have at any one time to 25. We accept new clients only by referrals from existing clients and our network of professional contacts and advisers.
Our standard fee is 1% per annum on assets up to $2 million, 0.75% per annum on the next $3 million of assets and 0.50% per annum on assets in excess of $5 million.
Separate Account Clients
The Essential Growth Portfolio and the Essential Absolute Return Portfolio (described under separate tabs) are among the building blocks for wealth management clients’ portfolios. These strategies were designed for high net worth and other risk-conscious investors – each strategy seeks to achieve its objective with a strong focus on risk control.
Increasingly, individuals, financial advisers, and other institutions have retained us to manage one or both of these strategies as separate accounts. In a separate account, the securities are held at an independent custodian and owned by the client. However, unless the client has requested customization, we strive for each account in the strategy to hold the same securities in same weightings. Of course, there will always be some differences across accounts as a result of timing, tax considerations and other client-specific issues.
As these relationships focus solely on investments (in contrast to the broad and deep wealth management client relationships described above), we are pleased to provide these separate account services on any of three custodial platforms: Charles Schwab & Co., TD Ameritrade and Trust Company of America.
Our standard fee structure for separate accounts is 0.75% of assets per annum.
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