Faq
Frequently ask questions
Question 1 What does it mean to offer fee-based services?
We want our clients to be assured that our recommendations are always made in their best interest. Under a fee based financial planning arrangement, any type of potential conflict of interest is eliminated entirely. Alternatively, for those clients who desire to utilize only our investment management services, they will be charged a fee based on a percentage of assets.
Question 2 How long has Macro Advisors Inc. been in business?
Macro Advisors, Inc. was incorporated in October, 2001 and began business operations in April, 2002.
Question 3 What are Macro Advisors Inc. fees for investment management?
The fees are dependent upon the amount of assets that are under management. Generally, depending upon the fee schedule, fees range from 50 basis points (one half of one percent) for large portfolios and up to one and one-half percent depending on the size and the complexity of the portfolios. If a client is also interested in financial planning, as well as other services we offer, hourly fee consultations, or as agreed upon set pricing, it is best to discuss the fee structure in a meeting with one of the firm’s Advisors.
Question 4 Can clients keep their assets where they are and make the changes themselves?
Typically, clients do not facilitate changes to the portfolio quick enough nor can we monitor the changes. Furthermore, it is impossible for us to report on a client portfolio without direct downloads from each custodian. Instead, we currently house virtually all of our securities accounts at Schwab Institutional.
Question 5 How often will Macro Advisors. Inc. review an investment portfolio?
Generally, we review each portfolio on a continuing basis. If circumstances warrant, such as market irregularities or a specific client need surfaces, we will review portfolios immediately.
Question 6 How often will Macro Advisors, Inc. meet with its investment management clients after the initial investments are Implemented?
During the first year for an investment management client, we will want to meet with a new client two to four times at a minimum, to explain as well as review their investment management performance reports. After that we will generally give each client the option to meet with us a minimum of every time that an investment management report is available to them. If they choose not to have a meeting, we will mail them the report and ask that they schedule a conference call with us.
Question 7 How often are clients updated on their portfolios?
We provide quarterly performance reports, which specifically state the beginning balance, contributions and withdrawals, the different sources of return, the ending balance, and the percentage and dollar return net of fees during that timeframe. We also compare these returns to various indexes. Each client will also receive direct from the custodian a monthly statement, which will list his/her holdings and the associated current values as of month-end. Furthermore, as securities trades are executed, each client will receive a confirmation statement with full details of each buy or sell.
Question 8 Does Macro Advisors, Inc. consult its clients when making trades?
Our practice is to consult the client regarding the portfolio’s construction prior to any initial investments being made. We will discuss our different investment strategies and what our client can expect from those strategies. Once a strategy is decided upon it will be stated in the client’s investment management contract. How we plan to invest from a strategic standpoint will be discussed as we report to each client throughout the year. However, we typically do not discuss each and every trade with each client. All of our accounts are discretionary. Any client may, of course, call us to discuss any moves we are anticipating or have made.
Question 9 What does “Discretion” mean?
Discretion means having the ability to trade in a client’s account without the client’s permission. This does not mean that Macro Advisors, Inc. has custody. Custody means that we would have possession of the client’s funds. Custodians such as Schwab Institutional maintains custody. Discretion simply means that we are able to make trades on a client’s behalf.
Question 10 Is there a charge for the initial meeting?
Macro Advisors, Inc. does not charge any fees to prospective clients until they actually decide to become clients. In a few instances, this has taken as many as three meetings and often includes a few phone calls to clarify points of our service, before a client comes on board.
