What is your fee structure?
Alpha Analytics charges an institutional level annual fee of 0.5% (50 basis points or .005)
of the assets that we manage. Any assets in excess of $10 million are assessed an
annual fee of 0.4% (40 basis points or .004). There is a minimum annual fee of $6,000.
Do you have a minimum fee or minimum level of investment funds?
We find that we can be of the most value to clients with investable assets of $1,200,000
and above. There is a minimum annual fee of $6,000. Based upon our annual asset
percentage fee of 0.5%, this equates to a portfolio of $1,200,000, below which the
minimum fee would apply. We do, however, have investment management clients who
are comfortable with our institutional and academic style of investing and have portfolios
at the $600,000 level. The annual fees on such a portfolio would be equivalent to 1%.
As a general rule, the larger the investment portfolio the greater range of investment
alternatives that can reasonably be considered.
Are there other fees associated with your investment services?
There are no other fees paid to Alpha Analytics. When Alpha Analytics purchases
stocks or exchange traded funds ("ETFs") on behalf of clients, commissions are paid to
the brokerage platform. Given our patient style of investing and today's low commission
rates, these fees do not have much impact on portfolio performance. As with all mutual
funds or ETFs , there is an expense ratio¹ that is paid to the fund manager. That is the
cost of managing, operating and maintaining a fund. The expense ratio is reflected in
the daily net asset value (NAV) or daily price of the fund. In addition, there may be a
cost of buying the fund (commission or transaction fee²). As a general rule, Alpha
Analytics recommends the use of low cost ETFs and no-load mutual funds.
¹ Typically, 20 to 80 basis points per year (0.2% to 0.8%)
² Typically, $20 to $50 per transaction
Do you require a long term contract or long term agreement?
We do require a written agreement but either party may discontinue and cancel the
agreement at any time with 30 days written notice.
Do you make additional fees through commissions or sales of investment
products?
No. We are in the category of investment advisors known as fee only advisors. That is,
we earn our income from fees generally based on an annual percentage of assets under
management. In certain instances, our fees are based upon an hourly rate or on a "per
project" basis.
We do not earn commissions by selling financial products such as insurance, annuities or
mutual funds with up-front sales or load charges. We do not earn greater fees by
engaging our clients in frequent trades (so called "active trading").
How well can I expect my investment portfolio to do?
Before proceeding, we would be pleased to share the historical performance of the
individual mutual funds and exchange traded funds that we would recommend for
inclusion in your investment portfolio, and a proforma historical performance of a
recommended investment portfolio constructed from these securities. Alpha Analytics
does not advertise the composite investment performance of its clients' accounts since
clients have a variety of financial goals, different risk preferences and investment
horizons unique to their personal situations.
Can you provide me with client references?
Certainly. At the appropriate point in the process, we invite you to contact one or more
of our clients.
Alpha Analytics Investment Group, LLC
Frequently Asked Questions (FAQ)
"Alpha" (α) is a financial
term describing that part
of an investor's return
that is due to the skills of
the investment manager,
as distinct from the return
of the market as a
whole. "Analytics" is the
process of systematically
collecting and analyzing
data in the service of
effective decision
making. At Alpha
Analytics, we strive to
add Alpha value through
skilled fundamental
analysis and a scientific,
disciplined approach to
investing.
