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" (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.
Alpha Analytics Investment Group, LLC
Frequently Asked Questions (FAQ)
