QUALITY SERVICE
ACM offers impeccable client service – one-on-one service with the person actually managing the client’s portfolio. No phone menus and “teams” of client reps. Client assets are custodied at third party, independent custodians. Our contract specifies limited authority over client assets – to buy and sell securities, to deduct advisory fees, and to disperse funds only in the client’s name to the address of record. Clients will receive monthly statements from the custodian and at least quarterly statements from ACM.
ACM manages personal and retirement accounts (including IRA's, retirement rollovers, cash management accounts, Roth IRA's, fixed income accounts).
Individuals and institutions can use ACM investment advisory services in one of 3 ways:
- Discretionary Portfolio Management- Client's assets are housed at a third party custodian (a brokerage firm or trust bank). ACM is ONLY empowered to trade on behalf of the client, dispurse funds to the client, and deduct advisory fees. ACM reports to the client quarterly with a complete asset review detailing each position owned. Client also receives monthly custodial statements.
- Non-Discretionary Portfolio Management- Same management setup as #1, with the important exception that ACM must receive approval from the client before any trading. This situation is used by clients who want to retain greater control over the management of their portfolios. Assets are housed at a third party custodian, and reporting is the same as #1.
- Subscription to ACM Research- Client retains all trading responsibilities, but receives access to ACM's proprietary stock research and analysis. Equity profiles of select companies are forwarded in customer-friendly reports. Additional consultation is also available beyond the equity profiles.
While every client portfolio is managed individually according to your specific needs and goals, they generally fall into one of the following basic strategies:
CONCENTRATED CORE - These portfolios are 90% - 100% stocks and managed for more aggressive growth. There are no capitalization or style restrictions, meaning that we identify the best companies across the entire stock spectrum. In order to consistently perform better than market indices, ideally portfolios are limited to 15 - 17 individual names. This type of concentration in the best companies puts these portfolios in the best position to achieve superior returns. This strategy is not suitable for all investors.
ALL EQUITY CORE - Portfolios following this strategy are also 90% - 100% equity, but are limited in exposure to mostly large and mega-cap names. This strategy also includes more diversification than the concentrated strategy, as portfolios may include up to 25 individual stock positions. Because these portfolios are large-cap and more diversified, there is less inherent risk in the portfolios (defined as beta risk and volatility).
BALANCED ALLOCATION - For investors seeking an ideal balance between income and growth needs, or smoother, less volatile returns, ACM offers balanced portolios that include up to a 60% fixed income allocation. The exposure to fixed income assets increases the overall income yield of the portfolio while diminishing price volatility.
INCOME PORTFOLIOS - Investors who have a primary need for income will choose this type of portfolio. Depending on individual income needs, and the current and expected rate environment, these portfolios will still feature some equity exposure. In low rate environments, capital appreciation is needed to augment lower fixed income receipts. In most cases, stock exposures will be limited to 30% of the portfolio.
It is not unusual for a client with multiple portfolios to invest in multiple strategies. For instance, a client with an IRA and a personal portfolio might choose the Concentrated Strategy for their IRA and an income portfolio for their personal account.
RISK MITIGATION - Mitigation of systemic risk is one of the most important aspects to portfolio management. Yet it rarely occurs for individual investors because most money managers lack the capability and conviction to do it, and do it properly. This is one of the key areas that sets ACM apart from the industry.
All of our equity-only portfolios receive systemic-risk mitigation techniques during periods of economic and market turmoil. When our research points to a decided imbalance in downside market risk over upside market potential (due to economic or market-specific factors) ACM will move each portfolio to near market-neutral. By being near-neutral, client portfolio values will stay relatively fixed regardless of market direction. For more information on why we mitigated portfolios in 2007-2008 and again in 2010, go to our research page. For more details on how we mitigate, request an investor information package.
To see the results of our strategies, including mitigation efforts, go to our performance page.
Our fees are not only competitive, but are inexpensive compared to most other firms. Our fees are as follows:
1.00% on the first $1,000,000 of market value
.75% on the next $1,000,000 of market value
.60% on the next $2,000,000 of market value
.45% on all over $4,000,000 of market value
Minimum Fee of $3,000 per annum
Portfolio management fees on large accounts are negotiable.
Portfolio management fees for charitable institutions are discounted 20%.
Most trust banks will not take accounts less than $2mm, and still charge more than 1%. Most brokers (those that don’t push products with large commissions) charge 1.5% to 2%. Hedge funds charge 2% plus 20% of gains.
