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The Barry
Building 2029 Woodbrook Court Suite C Charlottesville, VA 22901
(434) 220-3140 |
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Frequently Asked Questions Q. What are ETF’s. A. ETF stands for Exchange Traded funds. ETFs most closely resemble index mutual funds. The significant difference between ETFs and mutual funds is that ETFs are traded on the stock exchange throughout the trading day. Mutual funds can only be bought or sold once at the end of each trading day. ETFs generally have lower expense ratios which make them well suited in constructing asset allocation portfolios. For a more in-depth explanation regarding Exchange Traded Funds please refer to the About ETF's web page on this site.
Q. Who will be the custodian for my assets? A. All our retail accounts are held at Fidelity Investments®. Fidelity will provide custodial and record keeping services. Fidelity is a member of the NYSE and all accounts are covered by SIPC. Click here to learn more about Fidelity. Clients will be able to view their accounts on line and have full access to the Fidelity.com website. Scout Registered Investment Advisor LLC will only have investment discretion on your account. We do not take possession of your assets.
Q. What kind of investor should consider using ETF Scout? A. ETF Scout is suitable for investors with a total return growth investment objective. Our investment strategy is to generate the highest gain, consistent with asset allocation. Unlike other growth managers who are only interested in price appreciation we look to grow your account through any combination of price appreciation, dividends and interest. We think our clients should have at least a three year time horizon to reduce the risk of short term market volatility. As with all investments, past performance does not guarantee future results.
Q. What sets ETF Scout apart from other Investment Advisors who manage exchange traded funds? A. ETF Scout is designed to
significantly adjust the volatility in the portfolio. One of the ways that
we accomplish this is to either increase or decrease the amount of bonds
that are held in the portfolio.
Q. What if I need to make a distribution from my account? A. You can make a distribution from your account at any time during by calling during open market days and hours. Please call us at 434-220-3140 to make a withdrawal. To ensure that we can process your request on the same day please call three hours before the market closes. Once we sold securities in your account it takes three business days for the trades to settle in your account. After the settlement date, funds can we withdrawn by either check or wire transfer. For security reasons and to ensure proper execution do not e-mail or fax buy or sell instructions. If you expect to make regular withdrawals from your account please call us so that we can help you evaluate your specific circumstances.
Q. What kind of fees will be charged to my account? A. Your monthly statement will reflect two types of charges. 1) Scout Registered Investment Advisor LLC will charge you a monthly management fee based upon the amount of assets we manage for you. Our maximum fee is 1% per year of assets under management. Larger accounts will be charged a lower percentage. The complete fee schedule is included in the Advisor Agreement that you will sign when you open your account. 2) Fidelity Investments will charge you a transaction charge for each transaction that is initiated in your account. Scout Registered Investment Advisor, LLC does not benefit or participate in these transaction charges. We only make the changes that are necessary to maintain your account. A schedule of the Fidelity fees is also in the Advisor Agreement.
Q. How much activity can I expect in my account? A. Once your account has been established we typically exchange 1 or 2 positions in the portfolio per month. We do not actively trade your account. At the end of each month we will send out a monthly newsletter to discuss the changes that have been made in the portfolio. The newsletter will be based on the model portfolio that we use to track the ETF Scout Investment strategy. Each client will have a slightly different percentage allocation from the model portfolio. All the positions held in the model portfolio will also be held in each client portfolio, only the percentages will vary slightly.
Q. What is the minimum account size? A. To use our ETF Strategy the minimum account size is $100,000. This amount can be broken up into no more than 2 accounts. If you have an investment portfolio over $50,000 we can offer you the same basic strategy using mutual funds. The performance will vary somewhat as we can not find mutual funds that match up exactly with the ETFs that we use for ETF Scout. The results should be very similar.
Q. Will my account fluctuate in value? A. Yes, your account will fluctuate in value. All of the investments we make including the bond funds, will move constantly throughout the trading day. Accordingly, there is no guaranteed return of principal or minimum rate of return. Investments are not FDIC insured. While we work diligently to increase the value of your account, market volatility is an inherit part of investing.
Q. How do I open an Account? A. We thought you would never ask. It is a simple 3 step process.
Please call us at 434-220-3140
or email us with your mailing address Send all the signed original documents to: Scout
Registered Investment Advisor, LLC.
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Home FAQ's About ETF's About Scout RIA Newsletters Contact Us Custodian copyright 2006 Scout
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