Quality Asset Management
The following is a full disclosure of the fees you should expect to pay annually for your investments as a percentage of the portfolio value. Fee rates are not negotiable.
1 Annual Advisory Fees: QAM is a fee only investment advisor. You pay QAM only a percentage of assets, not per transaction. Your annual fees are calculated according to the following graded schedule, and are charged quarterly:
For example, the annual advisory fees of 0.83% for a portfolio with value $10,000,000, are calculated as follows: (0.96% x $2,000,000 + 0.80% x $8,000,000) / $10,000,000 = ($19,200 + $64,000) / $10,000,000 = 0.83%
2 In addition to the advisory fees, you are charged directly by the broker for transactions. QAM focuses on using brokers with competitive transaction costs and minimizes transactions. This results in the transaction costs for rebalancing the portfolios being almost negligible as a percentage of the portfolio. For example, TD Ameritrade charges $24 per transaction (assuming electronic statements or over $500,000 in household balance - otherwise $31), making a full annual rebalance cost up to $100-$200. Note: these fees can vary depending on market fluctuations, affecting rebalancing needs.The above is a full summary of costs you will see deducted for your investments. There are a few more costs that are already reflected in the mutual fund price: (1) Annual Mutual Fund Fees: 0.2%-0.61%, are the total effective fees charged by the mutual funds in the various portfolios, calculated as the weighted average expense ratio of each fund. The different values depend on the allocation to the portfolios. There are no other mutual fund fees (no-load, no 12-1b expenses); (2) trading spread : the difference between the buying and selling price of a stock, charged by the person performing the trade, and can affect the fund performance; (3) market impact : the change in the stock price during a large trade, increasing the cost of buying and decreasing the sales proceeds. Quality Asset Management reduces the impact of these fees by choosing mutual funds that trade infrequently in order to maintain the intended asset classes and to handle deposits and withdrawals. A more active reduction is achieved by performing negotiated trades of large blocks of stocks.
Past performance may not be indicative of future results. No current of prospective client should assume that the future performance of any specific investment, investment strategy (including the investments and/or investment strategies recommended and/or purchased by Quality Asset Management), or product made reference to directly or indirectly on this website, or indirectly via link to any unaffiliated third-party website, will be profitable or equal to corresponding indirect performance levels. Simulated data was used for periods prior to the inception of mutual funds - for more information see Performance Data Disclosure.
Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's or prospective client's investment portfolio. Note that services are limited to investment advice and do not include financial planning, legal advice or tax planning and/or other non-investment related consultation services. No client or prospective client should assume that any information presented and/or made available on this website serves as the receipt of, or substitute for, personalized individual advice from the advisor or any other investment professional. If you have any questions regarding the applicability of any specific issue discussed above to your individual situation, you are encouraged to consult with the professional advisor of your choosing. A copy of our current written disclosure statement discussing our advisory services and fees is available for review upon request.
Historic performance results for investment indexes and/or categories generally do not reflect the deduction of transactions and/or custodial charges or the deduction of any investment management fee, the incurrence which would have the effect of decreasing historical performance results.
The advisor makes no representations or warranties as to the accuracy, timeliness, suitability, completeness or relevance of any information prepared by any unaffiliated third party, whether linked to the website or incorporated therein. Such information is provided solely for convenience, and all users should be guided accordingly.
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