A Wake-up Call for Investors:
Get out of Mutual Funds!
For many years mutual funds were the only investment solution for millions of investors—but the investment landscape has changed. Today, with the advent of technology, new investment alternatives are being offered to investors every day. Many of these can provide huge benefits to individuals striving to reach their financial goals. This Web page gives you insights into one of the most important investment developments in a generation: the separately managed account.
Investors have been dribbling away their wealth in mutual funds for many years.
During the go-go years of the eighties and nineties—the years of double-digit returns—hardly a ripple of discontent was heard among mutual fund investors.
The light flashed red during the first years of the new millennium as investors experienced double digit losses and capital gains tax liabilities. For the first time, mutual funds with built-in negative income tax consequences, inflated and hidden fees, and lack of portfolio control caused savvy investors to realize they were and are today wasting their wealth.
Separate Account Management (SAM), once the investment vehicle of only the very rich, is basically a professionally managed group of securities owned by an individual investor.
Due to recent advances in software platforms and market competition, hiring a top gun money manager to handle your portfolio alongside multi-million dollar accounts is truly an extraordinary achievement.
The emerging affluent investor can enlist the services of these world-class institutional money managers with as little as $50,000 initial investment (as low as $25,000 is not unheard of)—not millions of dollars as was required in the past.
What do you receive if you move your holdings out of mutual funds into a separately managed account? One flat fee for a professional money manager who will maintain your account with all services (trading, custody management, and consulting), allowing the knowledgeable investor a fair tax structure, improved performance, more hands-on control of individual securities, and lower fees than mutual funds. |
