The Investment Advisers Act of 1940 restricts the use of these terms to those individuals or companies whose principal business consists of acting as investment advisors and who are registered with the Securities and Exchange Commission. A key component of this legislation is that investment counsel have a fiduciary responsibility to their clients – this means that we have a legal duty to represent the best interests of our clients.
Your funds will be held at the brokerage of your choice, although we can help you choose a brokerage firm, if desired. We typically encourage clients to consolidate their investment accounts, where feasible, for ease of record keeping. While we are granted a limited power of attorney (LPOA), we never take control or possession of your assets – you maintain full control of your account at all times. An LPOA typically only allows us to view your account and authorizes us to make trades within the account.
In our experience, an individual typically chooses to hire an investment advisor because he/she does not have the time, interest or ability to determine an appropriate investment strategy, decide upon necessary security purchases/sales and continuously monitor portfolios for any needed actions. If a prospective client has the interest, time and ability to analyze and select investment purchases/sales and then continue to monitor those holdings for future needed actions, hiring Dumaine Investments may not be an appropriate decision for him/her.
We offer financial planning holistically combined with ongoing portfolio management. As part of our regular services, Dumaine continuously monitors their portfolio for needed actions. Our client relationships are predominantly discretionary (i.e., Dumaine is granted full authority to buy and sell securities on our clients’ behalf without their prior consent). However, we work closely with our clients to determine their portfolio’s overall strategy which culminates with a written investment policy (IP) that summarizes their overall financial situation, ability and desire to assume risk, and their anticipated financial needs. The IP spells out targeted allocations of investment assets between the primary liquid investment categories in which we invest (i.e., cash/money market mutual funds, fixed income/bonds and stocks/equities).
Our overall strategy is dictated by the written investment policy crafted around a client’s unique situation. Individual securities are selected based on a top-down assessment of the global, political, and economic environment. We then select individual securities based on a bottom-up fundamental assessment of a given security’s specific risks as well as its appreciation and/or income opportunity. We are active investment managers who primarily select specific individual stocks with a value-oriented bias along with individual fixed income securities. We also purchase exchanged traded funds and mutual funds as needed. If appropriate for the client, private placement investments may also be recommended although they are purchased only with a client’s written approval and authorization.
Our fee for investment portfolio management services is based on a percentage of the assets in your account(s). Annual Fee Schedule for Investment/Portfolio Advisory Services:
Assets Under Management~~~~~~~~~~~Annual Fee
$0 – $1,000,000~~~~~~~~~~~~~~~~~~~1.15%
$1,000,000 – $3,000,000~~~~~~~~~~~~0.70%
Our annual portfolio management fee is billed and payable, quarterly in advance, and is calculated based on the account(s) balance(s) at the end of the prior billing period. If the portfolio management agreement is executed at any time other than the first day of a calendar quarter, our fees will apply on a pro-rata basis (i.e., the advisory fee is calculated in proportion to the number of days in the quarter for which an individual is our client). Both our wealth and investment advisory fees may be negotiable depending on individual client circumstances. Fees are payable regardless of whether a client’s investments make or lose money. Fees and costs will reduce any amount of money a client’s investments make over time. It is essential that individuals understand precisely what fees and costs are being paid over the course of time. In the current interest rate environment, it is possible that any cash or near cash investments held by a client may earn less income than the fees levied by the firm.