Fee Structure
At IAM, we offer you a choice of fee structures and management styles.
Studies have shown that asset allocation is the primary driver of investment performance and risk control in investment portfolios and that mutual funds on average do not outperform their benchmarks after fees. For this reason, many investors and advisors choose to implement investment portfolios using relatively low-priced exchange-traded funds (ETFs) or what may be called index or tracker funds. Our Portfolio Advisory service does exactly this, we use ETFs to build an internationally-diversified investment portfolio consisting of multiple asset classes that enhance diversification and help control volatility.
While asset allocation may be the primary driver of investment portfolios, we believe that investment selection can add additional value; not only in terms of investment returns, but also in terms of customization for international diversification, tax optimization, and reflecting personal values such as ESG principles. Our Portfolio Management service uses mostly individual securities such as stocks, bonds, business development corps, REITs, preferred shares, and a variety of others, that come together in an investment solution that is more transparent than an ETF or mutual fund, and more optimized in terms of taxation, income production, and various other investor demands. For larger portfolios, this may also be a more cost-effective solution since ETFs do have internal fees, whereas trading costs for individual securities are minimal.
Our Fees Explained:
Portfolio Management Fees
Minimum account size: $400,000
Assets-Under-Management (AUM) fee structure: Yearly fee of 1.5% for AUM under $500,000, 1.25% for AUM between $500,000 and $1,000,000, and 1% for AUM over $1,000,000.
As an example, for $3,000,000 the annual fee would be: (1.5% x $500,000) + (1.25% x $500,0000) + (1.0% x $2,000,000), which would give an overall fee of 1.125% on $3,000,000.
Portfolio Advisory Fees
Minimum account size: $400,000
Assets-Under-Management (AUM) fee structure: Yearly fee of 1.0% for AUM under $1,000,000, 0.85% for AUM between $1,000,000 and $2,000,000, and 0.7%% for AUM over $2,000,000.
As an example, for $3,000,000 the annual fee would be: (1.0% x $1,000,000) + (0.85% x $1,000,0000) + (0.70% x $1,000,000), which would give an overall fee of 0.85% per year on $3,000,000.
Financial Planning Fees
One time fee from $1,500 to $3,000 depending upon complexity of plan. Portfolio Management clients receive free financial planning services and Portfolio Advisory clients receive either free or discounted financial planning services depending upon the level of assets under management.