SERVICES
Portfolio Management
We actively manage tailored, diversified portfolios for our clients. Each individualized portfolio may contain equities (stocks of specific companies); Exchange Traded Funds/ETFs (baskets of equities or bonds); and/or fixed income holdings (specific bonds or bond ETFs). We avoid recommending investing in mutual funds. Due to their layered fees, tax implications, and sales costs, most mutual funds underperform the overall market.
At Alpha Solutions, we do our own research, then purchase specific equities, and incorporate select ETFs. Every holding is evaluated and scrutinized for its fundamental (financial information analysis) characteristics and technical (chart analysis) attributes. In this way, we construct customized portfolios, personalized for each of our clients’ investment goals and risk tolerances.
Portfolio Management Fees
We are a Fee-Only Registered Investment Advisor (RIA). As such, we do not accept any commissions or other compensation related to the trading activity in our clients’ accounts. This eliminates the possibility of a conflict of interest in choosing which investment should be purchased, as we are committed to acting in the best interest of our clients.
Our fees are billed and payable in arrears, at the end of each calendar quarter. For example, when we manage your portfolio in Q1 (January to March), your April statement will include our Portfolio Management Fees. These Advisory Fees are calculated as a percentage of total assets under management.
Advisory Fee Schedule (annual rate, based on market value of assets under management):
Assets Under Management Annualized Fee*
First $2 million (amount up to $2 million) 1.25%
Next $3 million (amount over $2 million up to $5 million) 1.00%
Next $5 million (amount over $5 million up to $10 million) 0.75%
Next $10 million (amount over $10 million up to $20 million) 0.60%
Amount over $20 million 0.50%
For example, an account of $10,000,000 would pay an annualized fee of 1.25% on the first $2 million, plus 1% on the next $3 million, plus 0.75% on the remaining $5 million, for an annual total of $92,500 or $23,125 per calendar quarter.
*Our clients can elect to authorize quarterly fees be paid by automatic deduction from their account; or they can pay for fees due upon receipt of an invoice. With either payment method, we will always send a quarterly statement that will indicate how our fees were calculated. We will NOT request payment of fees in advance. In accordance with CCS Section 260,238(j), it should be noted that similar advisory services may or may not be available from other investment advisors, or other sources, for similar or lower fees.
Note:
A minimum annual fee of $5,000 will be imposed on each account. The minimum fee may be waived or reduced at our discretion. We also reserve the right to adjust the fees for accounts depending on the size and type of account and the services to be rendered. In some cases, negotiation of fees may result in different fees being charged for similar services and may be less than the stated fee schedule.
The Fees for our services as described above are completely separate and unrelated from “other costs” that a client may incur through: brokerage/transaction commissions, custodian account fees, fees related to foreign ADR stocks, taxes related to foreign stocks, ETF expenses and or mutual fund sales charges or expenses in connection with our advisory services. We do not charge, collect, or benefit from these “other costs”. We encourage our clients to obtain a complete schedule of fees from their custodian/brokerage firm. Alpha Solutions Investment Advisors is not affiliated with any specific custodian, broker/dealer or agent.