The ALTRUIST® Portfolio Management Service provides you with
ongoing management of your investment portfolios.
We realize that hiring somebody to
manage your money requires a great deal of trust. That’s why we do
everything possible to ensure that you will be happy with our services and
the value that we provide. There are several good reasons why (we feel
that) the ALTRUIST®
Portfolio Management Service is superior to nearly all similar services
Low cost. We encourage you to “shop around” for lower fees. We’re
confident that it will be extremely difficult to find any lower than ours for
those with sufficiently large portfolios.
Unlike many other pursuits, the adage, “you get what you pay for” does not
apply in the financial services area. If you pay more in fees, you have less
money to invest, which tends to cause your overall returns to be lower.
Guarantee. We guarantee your satisfaction with our service.
If you are not absolutely pleased with the value we have provided, we will
refund your fees paid.
Non-Discretionary Management. We generally insist on
non-discretionary management. Unlike most similar services
available elsewhere, you don’t need to “trust” us to make prudent trades on
your behalf. We believe that the best way to manage a portfolio is to fully
engage you in the process so that there are never any “surprises.” Any time
we believe that any adjustments should be made to your portfolio, we make our
recommendation to you in writing, along with detailed rationale and pros and
cons of the contemplated action. You are then able to either approve, modify,
or reject the contemplated action. We will not execute a transaction on your
account until you approve it first. We typically don’t recommend such
adjustments any more often than once every two or three months – to do so more
often than that is usually imprudent.
Access to Institutional Mutual Funds. In addition to funds
available to all retail investors (e.g., those of
Vanguard), our clients are able to invest in the sophisticated
institutional funds of Dimensional Fund Advisors (DFA).
These funds are designed primarily for institutional investors and may represent
the best funds available in several asset classes. For a list of funds we
currently recommend for each of several asset classes, see
Prudent Investing. Our
investing strategies are consistent with the legally recognized
Investor Rule. For more information on our investment philosophy, see
We base our strategies on principles that have been demonstrated by academic
research, never "hunches".
For more information on why hiring an investment advisor might be beneficial,
ALTRUIST® Portfolio Management Service clients
usually must first be enrolled in
one of our financial
planning or Investing Plan services.
For clients transitioning from the ALTRUIST®
Comprehensive Financial Plan, once the plan is completed (i.e., the
ALTRUIST® Portfolio Management Service is ready to be implemented), we will credit
their accounts for $1,000. This precludes clients from being
charged twice for similar services. Note that clients transitioning
from the ALTRUIST® Investing Plan are
not entitled to this credit.
For the ALTRUIST® Portfolio Management Service, Altruist receives an annual fee
based on percentage of assets under management as per the fee schedule
below, paid quarterly in arrears, computed based on the value of the
portfolio at the end of the quarter.
Fee Schedule for ALTRUIST®
Portfolio Management Service
0.235% per year (i.e., 0.05875% per quarter)
|| 0.11% per year (i.e., 0.0275%
||0.055% per year (i.e., 0.01375% per quarter)
||0.03% per year (i.e., 0.0075% per quarter)
||0.02% per year (i.e., 0.005% per quarter)
There is a minimum annual fee of $30,000 per year (i.e., $7,500 per quarter)
for the ALTRUIST® Portfolio Management Service.
Generally, Altruist will not accept accounts of less than $3,000,000,
but exceptions may be made on a case-by-case basis.
In addition to the above fees which Altruist receives, clients will
be responsible for mutual fund expenses and
Altruist currently utilizes
Institutional as its principal custodian,
primarily due to their low fees.