We provide our investment management services on both a fee-based and traditional commission-based platform.
Our philosophical preference is to lean toward a fee-based relationship since there are no perceived conflicts of interest. There is no better way to truly partner with our clients than to derive compensation through a portfolio’s progress rather than its level of activity.
There are situations, however, where a commission-based platform is simply more appropriate. A portfolio predominantly centered on fixed income instruments is one notable example. At the onset of each client relationship we have an open discussion about the expected total expenses of either platform and together determine which would be the better option. Things we discuss include whether it would be better to pay separately for each trade executed and each product and service used. Since these factors may change, we periodically re-evaluate whether the ongoing use of a particular asset-based fee program continues to be appropriate for each clients’ needs.