Do you hold my investments? In whose name are they held?
With Selway Asset Management, your assets are held at a brokerage firm or bank trust department. All of your assets are held by these custodians in your name. We operate with them through an investment management agreement that allows us to direct activities on your behalf.
Do you act as a broker? Do you earn commissions on what you sell?
We are a fee-based investment manager. We are not brokers and do not receive any commissions on the investments we select for you. Our only compensation is based on the total value of your assets under management. Our fee is assessed as a percentage of your account and billed quarterly. Further, this fee is based on a sliding scale, which means that as the assets in your account grow, the fee, as a percentage will drop.
How long will it take to get fully invested?
It depends on current market conditions and asset valuations. We are not market timers and put money to work only as we find compelling investment opportunities. It will typically take 3 to 6 months to get your account fully invested.
How does a privately managed account compare to a mutual fund?
Compared to a mutual fund, there are several advantages. We offer you a personalized portfolio created specifically for your unique situation at a lower cost. Compare our fee schedule to the operating ratio for various funds, and we think you will be pleasantly surprised.
At Selway, you have access to your portfolio manager any time you want, and you receive trade confirms, monthly custodian statements, and quarterly portfolio summaries. Mutual funds do not send trade confirms, so you are unable to monitor the activity in your account. Reports are typically prepared semi-annually and fund managers are not available to answer questions.
We manage your account with an eye towards your specific tax situation. We have the ability to harvest losses and avoid certain taxable events such as short-term gains. Mutual funds are disadvantaged when it comes to taxes due to specific regulations requiring capital gain distributions.
Will my account information remain confidential?
We believe that your wealth is an extremely private issue and your identity and financial records are kept strictly confidential. We share absolutely nothing with third parties, and will only disclose the information if explicitly directed by you.
Must I sell everything and transfer only cash for you to manage my account?
No. In most cases, we can accept transfers of all the securities in your account. In fact, we prefer that you transfer the securities to your new account with us, as we can execute any necessary trades more cost-efficiently.