What is an seperately managed account?
A seperately managed account is a Charles Schwab & Co. Institutional account, opened in your name, in which you have granted Pacific Strategic Management, L.P., the division of our firm which is a registered investment advisor, the permission to invest the assets of the account. All shares of mutual funds purchased for your individually managed account are held in your name. Even though we have been granted permission to invest on your behalf, you remain with full access and total control over the assets in your account.
A separately managed account (an “Account”) normally consists of a portfolio of between two and five unaffiliated, third-party, no-load equity mutual funds with a proven history of compounding capital in tax-efficient manner. The mutual funds are held in the Client’s own name in their own Charles Schwab & Co. Institutional account and are managed on a fee-only basis. Accounts with assets in excess of $25 million may also hold equity securities.
The assets in an Account provide daily liquidity and full transparency. The minimum initial investment for an Account is $100,000. However, we may agree to manage an Account for less.
Are seperately managed accounts available anywhere besides Charles Schwab & Co?
No. We only manage accounts at Charles Schwab & Co. Investments made for our client's seperately managed accounts are exclusively purchased through Charles Schwab & Co.
What is the minimum investment?
A minimum investment of $250,000.00 is required to establish an individually managed account.
What is the management fee?
Our fee is based on the value of your assets under our management. At the end of each quarter, we charge a quarterly management fee of 0.25% of the assets under management. Should the ending balance be less than $250,000.00 a minimum quarterly management fee of $625.00 will be charged. After you have received a statement for our services, we automatically deduct or management fee from your account.
Investment management fees (“fees”) are based on the fair market value of assets types under management at the closing date of each quarter. Funds added or withdrawn from an account during the previous quarter are charged on a pro-rata basis.
Our fees are non-negotiable.
What is the length of the contract term?
There is no minimum contract term or "lock-up" period. If you would like to terminate our services at any time, we request that you inform us in writing.
What brokerage commissions will I incur?
Many of the mutual funds chosen for our clients' portfolios are Schwab One-Source funds, which are transaction free. However should a brokerage fee apply, the fee will be $20.00 per trade. Trading is held to a minimum.
What reports will I receive?
Each account will receive a monthly, and if requested, quarterly account statement electronically from Charles Schwab & Co. In addition, our firm issues a quarterly performance report which includes an invoice for that quarter’s management fees, the value of which is automatically deducted from the account. You will also receive an email notification when we purchase or sell a mutual fund in your account.
If I am interested, what do I do next?