In our Portfolio Management service, based on the allocation you choose in your Integrated Financial Plan, we purchase the securities required to put your target asset allocation into practice, and periodically report the performance of your portfolio and rebalance to your target allocation.
We manage your assets according to your Investment Policy Statement, a formal document that records your choice of target return and risk, and identifies other factors we should take into account as we select investments for you. If we have done an integrated financial plan for you, the Investment Policy Statement is a direct result of that work. If we haven’t, we usually have an asset allocation consultation to review your investment objectives and issues, and to help you select a target portfolio.
What does managing my investments consist of?
For Sensible Financial®, managing investments means:
Navigating the Risk Return Maze
Helping you decide how much future spending power to seek and how much risk to take by providing a clear statement of the risk-return trade-off.
Recommending Passive Mutual Funds
Recommending diversified, low cost investments to accomplish your spending power objective at the lowest possible risk
Making the Transition
Doing the work to put the investment program into place: opening accounts, transferring assets, purchasing investments.
Reporting & Rebalancing
Reporting on your Portfolio’s Performance and Recommending investment purchases and sales to restore your portfolio to your desired risk level and target return (rebalancing).
Minimum Asset Level
We have generally found that clients with investable assets of $500,000 or more are most likely to be able to benefit from the services that we offer. However, we can work effectively and efficiently with clients who anticipate having assets at that level in just a few years, even though they may not yet have investable assets at that level.
What will this cost me?
Portfolio Management Fee Structure
| Assets | Marginal Percentage Fee (Annual) | |
|---|---|---|
| At or above | Less than | PM |
| 500,000 | 1.10% | |
| 500,000 | 2,000,000 | .60% |
| 2,000,000 | 5,000,000 | .50% |
| 5,000,000 | 10,000,000 | .40% |
| 10,000,000 | .16% | |
One-Time Establishment Fee
We charge a one-time account establishment fee at the beginning of a portfolio management relationship to cover our costs of establishing your accounts at our custodians and on our information systems.
The account establishment fee is usually between $500 and $3,000.
• More accounts to establish
• More accounts to report and rebalance
• More accounts to transfer
• More securities (stocks and mutual funds) to sell
• Dollar cost averaging transactions (if you wish to phase in your investment)
The fee can exceed $3000 in cases of unusual complexity (e.g., with many accounts, or many securities.)
Portfolio Management Fee Structure (Detailed)
| Account value | Annual Cost | BPS* |
|---|---|---|
| $500,000 | $5,500 | 110 |
| 750,000 | 7,000 | 93 |
| 1,000,000 | 8,500 | 85 |
| 1,250,000 | 10,000 | 80 |
| 1,500,000 | 11,500 | 77 |
| 1,750,000 | 13,000 | 74 |
| 2,000,000 | 14,500 | 73 |
| 2,500,000 | 17,000 | 68 |
| 3,000,000 | 19,500 | 65 |
| 3,500,000 | 22,000 | 63 |
| 4,000,000 | 24,500 | 61 |
| 5,000,000 | 29,500 | 59 |
| 6,000,000 | 33,500 | 56 |
| 10,000,000 | 49,500 | 50 |
| 11,000,000 | 51,100 | 46 |
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