We are a fee-only advisor. We only charge a simple management fee; no commissions, no kickbacks, no hassle.
For household relationships below $500,000, the fee is 1.25%; below $3 million, we charge 1.00%; below $5 million, 0.75%; above $5 million, the amount is negotiable. Under certain circumstances, including passively managed accounts and around extremely conservative portfolios, our fees are even lower, at 0.40%. Billing periods are once a quarter, so one fourth the annual fee would be assessed based on the amount of assets under management at that time.
We believe low fees are critical to achieving strong risk-adjusted performance. We are concerned market returns in the years ahead may trend lower, and if that is the case, keeping fees low is going to become even more important. We think high expenses and a lack of transparency is a big problem in our industry, and you will find our fees simple to understand.