Managed Advisory Portfolios:
Shealy Wealth Management offers access to this asset management service as the preferred platform for single accounts valued at a $500K account minimum. These portfolios are managed strictly on a fee-based arrangement where discretion is required over the account management.
Shealy Wealth Management offers four investment styles. The four investment styles are (1) Aggressive Growth, (2) Growth with Income, (3) Income with Moderate Growth, and (4) Income with Capital Preservation. However, individually customized advisory portfolios are available provided certain account minimums are met.
The asset management approach for the various investment styles referenced above is highly quantitative in nature. As examples, the more advanced mathematical sciences such as Stochastic Calculus, Time Series Analysis, and Partial Differential Equations are integrated into our approach to help determine when to buy or sell securities in our client’s portfolios. To a minor extent, some of the more traditional as well as classical technical analysis indicators are factored into our rules based investing approach.
There is no assurance that the objectives will be achieved. With regard to the Managed Advisory Portfolios, these accounts are not charged a flat fee basis. These accounts are managed on a percentage basis of the account value. The fees charged for the Managed Advisory Portfolios include the following services: strategic asset allocation, portfolio design, on-going management, individual account performance measurement provided by LPL Financial Monthly and Quarterly Statements in conjunction with performance measurement of various indices. There are two versions of the Managed Advisory Portfolios. In one version, the advisor incurs all of the trading cost. In another version, the client pays the trading costs for the purchase and liquidation of the mutual funds which will fall into one three potential charges. For the purchase or liquidation of a mutual fund within this platform, the trading costs for a client for a mutual fund could either be $4.50, $13.50, or $26.50 depending upon the level of participation the fund company has within this LPL Advisory Program. For IRA accounts, there is a $40 annual fee. For accounts valued at less than $100K, there is a $10 per quarter administrative fee. There is not a minimum fee requirement; however, the annual advisory fee will not be any less than .25% and not any greater than 3%. Where the annual advisory fee ultimately falls within the aforementioned range is negotiated with each client individually. More actively managed accounts may be more appropriate and cost effective within this platform than for more traditional conservative “buy and hold” accounts. In addition to the annual advisory fee, the client is still incurring the internal fees of the mutual funds and ETFs owned inside of the accounts.
