Frequently asked questions about establishing investment management services with CCAM.
Q. What should I know about Capital Cities
Asset Management (CCAM)?
A. Capital Cities Asset Management is a registered
investment advisor. We are dedicated to helping our clients achieve their long-term investment goals.
We actively manage our investment programs using Exchange Traded Funds (ETFs) and mutual funds in an effort to surpass their market
benchmarks.
Q. Why should I consider using an investment advisor?
A. While some investors achieve success on their
own, it is challenging to be disciplined enough to do so. For many, it may be beneficial
to retain the full-time investment focus of a professional money manager. This allows
individuals to spend time pursuing their own interests.
Q. Is there a minimum account size?
A. The minimum account size is $100,000 per
client. Account minimums can be met using a combination of taxable and retirement
accounts. Two accounts of $50,000 each for spouses will also meet this minimum.
Q. Where are my assets held?
A. The majority of CCAM managed accounts are
custodied at Fidelity Investments and Ameritrade. These strategic
relationships with Fidelity and Ameritrade allow us to effectively serve our clients.
Depending on the specific investment program you select, there may be
other custody options.
Regardless of which custodian you select, assets are held in your name,
and you retain full control of the account.
Q. How are my assets protected?
A. Your assets are held by an independent custodian
and can not be withdrawn by CCAM, except for deduction of management fees. However, you have access to your money at anytime.
Each separate customer brokerage account is covered up to $500,000 by the
Securities Investor Protection Corporation. In addition, Fidelity and Ameritrade offer supplemental
asset protection, bringing the total amount of coverage up to $100 million and $25 million, respectively.
Q. If CCAM does not hold my assets, how does it manage my
account?
A. When your account is established, you provide CCAM
with limited trading authority. This authority allows us to initiate trades among securities
within your account.
Q. Are my assets pooled with other investor funds?
A. No, all investors maintain their assets in
individual accounts.
Q. In what ways do I receive information about my
account?
A. You will have access to account information
through a variety of methods. You will receive monthly or quarterly statements from your custodian and
quarterly reports from CCAM. In addition, if Fidelity or Ameritrade is your custodian, you receive
confirmations for each trade executed as well as 24-hour access to your accounts via the respective custodian's website.
Q. What does CCAM charge for its services?
A. CCAM receives a flat fee instead of commissions
for its services. Our investment advisory fees can range from 0.2% to 0.6% per
quarter, depending upon the investment program selected and level of assets
under CCAM's management.
Employees of CCAM invest their own assets in the investment portfolios,
and so you can be sure we strive to avoid unnecessary transaction fees and loads.
Q. What types of investment programs are available
through CCAM?
A. Investors can choose from several programs
with varied investment objectives. Some investment programs use Exchange Traded Funds (ETFs) or no-load mutual funds
while others are based primarily on Fidelity mutual funds. Investment objectives range from conservative to very aggressive growth utilizing leverage.
Q. Does CCAM manage any investment programs that are tax
sensitive?
A. Our Tax Sensitive Asset Allocation strategies operate with an objective of being as tax efficient as possible. Additionally, CCAM
can manage assets that are within select tax-deferred annuities.
Q. How does CCAM decide what mutual funds to hold?
A. For programs using a rotational investment
approach, we use a disciplined approach to analyze fund rankings, global market
conditions, and other indicators to determine which sectors and investment styles are the
strongest. When indicators are in agreement, the investment programs are upgraded by
rotating out of what are believed to be weaker funds and into stronger funds.
Q. If I have a retirement account, can I have management
fees taken from the account? Is this considered a distribution?
A. You may have your management fees taken directly
from your retirement account. This payment is not considered a distribution and is not
subject to taxes or penalties.
Q. How do I go about getting started?
A. CCAM will assist you in establishing an
account with your chosen custodian including limited trading authority. If you already
have your assets at Fidelity or Ameritrade, your new account can be funded by simply completing an
internal fund transfer.
For 403(b) accounts, assets remain in the account where they currently
reside. In order for CCAM to manage your account, you need only give us limited trading
authorization.
Call (800) 767-2595 to get started today!
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