What does it take to be
a client of
We do not advertise or otherwise market to prospective clients. We are
referral-only and have only two requirements:
- Investable assets of a minimum of $1 million or more, and
- Your understanding and appreciation of our disciplined asset allocation
process – this will be discussed and agreed upon in your Investment
Policy Statement. We do not “pick stocks”, follow technical
analysis, or otherwise listen to the marketing hyperbole of so-called Wall
Street experts.
What does
“Fee-Only” Investment Advisor mean? Why is this important?
As stated on our FORM ADV (available on Investment
Advisor Public Disclosure) that is filed with the SEC, our
compensation is limited to a percentage of assets under management or, in the
case of a consultancy relationship, an hourly or fixed fee. Importantly, we are
not allowed to collect commissions or subscription fees based on investments
done on your behalf. This ensures objectivity and drastically reduces or
all but eliminates conflicts-of-interest when managing your portfolio.
Why does your suggested
portfolio use many funds from Dimensional Fund Advisors?
Dimensional Funds is a unique fund company. In an
industry dominated by actively-managed funds with higher expenses and fees,
Dimensional is the one company that offers passive, asset-class specific mutual
funds with low expense ratios that are not managed to an index. Their
funds are not generally accessible to individual investors and cannot be
purchased through brokerage firms or life insurance companies. Only
institutional investors and select investment advisors can purchase DFA Funds.
Maryland Capital Advisors is a DFA-approved investment advisor and many of
their funds offer the most tax-efficient, low-cost means of exposure to several
asset classes. We are not obligated to use, nor do we derive any benefit from
using, DFA Funds. We do, in fact, use other mutual and exchange-traded funds.
Will Maryland Capital
Advisors Inc. hold my assets directly?
No. MCA is not the custodian of client assets – we
merely establish institutional accounts for our clients and obtain authority to
implement the portfolio. MCA does not have the authority to remove or transfer
funds from client accounts, unless expressly authorized by client. Once the
institutional account is established, we can access the low-fee investments
that are available only to institutional investors.
Will
I be required to move my investment assets to another custodian?
Possibly. We have reviewed custodial firms and currently find Schwab Institutional
and TDAmeritrade Institutional to be the best firms
for our clients. These two firms are industry-leaders, have solid reputations
and provide substantial third-party account protection against brokerage firm
insolvency. Should we find other custodians able to provide a better service,
convenience, or cost, we would consider using them. As explained in our
regulatory disclosures (Form ADV, see www.adviserinfo.sec.gov), MCA does not obtain any compensation from either custodial firm.
Do you accept clients
who live outside
Yes. We remain in close contact with out-of-state clients
with teleconferences and occasional visits when we are in their area. The most
important element of a successful advisor-client relationship is a mutual
appreciation for the investment approach we utilize. Our strategy does not rely
on active trading, so there is no need to discuss portfolio investment activity
on a frequent basis.
Are you able to provide
references?
Yes. After we have met with you and there is mutual
agreement on investment philosophy, we can provide a few client references.
How does MCA ensure
confidentiality?
Privacy is of utmost concern to us. We have strict
internal confidentiality policies and employ data security measures to
safeguard client information. We never mention to others who our clients are,
with the exception of those clients that are willing to provide references to
others.