SCOTT INVESTMENT ADVISORS, L.P.
Home of the SAM Portfolios
562-900-7261
FAQS
Everything You Need to Know
IS THERE A MINIMUM AMOUNT OF MONEY I NEED TO INVEST?
SIA has designed its structure and management platform to accommodate a very broad range of investors. Individuals with as little as $25,000 or institutions with $100,000,000 can gain access to the same management based on a highly competitive fee schedule.
WHAT FEES DO FINANCIAL TRADING FIRMS CHARGE?
Today most firms charge fees based on Asset Under Management (AUM). Commissions today at the retail investor level have all but disappeared. Securities trade for a bid and an ask price. Highly liquid securities have a very narrow spread between the buyer and seller. The lack of liquidity narrows the spread between the two. Advanced high volume trading conduct buy and sell transactions at very small margins. Once the securities reside in a portfolio, the asset management firm then charges their fee. These fees generally range from 0.50% to 3% while hedge funds may charge 3% and share 30% of realized gains annually.
SIA executes through the very advanced auto-execution trading systems by partnering with Goldman Sachs to acquire and sell securities. The AUM fee at SIA ranges from 0.30% for institutional investor, to 2% for the smaller retail investor.
WHAT SECURITIES ARE PURCHASED FOR THE SAM PORTFOLIOS?
Today SIA principally utilizes ETF's (Exchange Traded Funds). Among selected equity portfolios, individual stocks supplement the ETF's except the NewEra and World Growth Portfolios for which individual securities are used due to their more aggressive nature. In this case, ETF's are then used for diversifying and hedging purposes.
DOES SIA OFFER FINANCIAL PLANNING?
No, not in the traditional comprehensive context. We are strictly a portfolio management firm. Our job is to make certain that the investor properly profiles their attributes of risk honestly and to help them come to the right conclusions through our profiling tools and questionnaire (SAM Profiler). Once this is achieved we lead the investor to a portfolio that is designed to stay within the risk parameters they have defined (SAM Portfolio Selector). Each of the SAM Portfolios has been designed to produce long term stable rates of return, while consistently remaining within the risk parameters. The investor attains a long term stable rate of return assumption that can be used to develop a long term goal by using a single initial lump sum amount, a combination of initial amount with ongoing contributions, or ongoing contributions only. Developing a timeline to the desired goal can provide the investor with insights on any adjustments needed to reasonably achieve the goal.