TRG gives its clients the opportunity to select the investment management fee schedule that is right for them. This is an important differentiating factor between TRG and other investment advisors / management firms. To provide help in determining your direction we offer the following question and answer matrix that might support your decision making process:
It is TRG’s belief that your fee schedule should be based on the complexity level of the investment management strategy chosen by the investor. A Traditional buy- and-hold portfolio with rebalancing and rotations is intensive for just a short period of time. After the effort is completed, the portfolio manager maintains the portfolio whether the markets are trending higher or lower.
TRG maintains a higher fee schedule for our Dynamic strategies due to the complexity of the implementation and active monitoring and management. Therefore, customers selecting these strategies will require enhanced risk management techniques which require us to charge more
As an investor you must determine where you fall on the risk spectrum and whether or not there are any tax implications as a result of the strategy chosen. Therefore, you must answer the following questions:
- Am I a patient investor that wants to develop a long-term portfolio using a buy and hold methodology with annual reviews and updates knowing full well that there will be ups and downs in the market?, or
- Do I as an investor want the opportunity to participate in as much of the upside as possible, yet need the ability to protect myself on the downside knowing that it may result in short term capital gain recognition for taxable investors?
TRG can offer its Enriched Traditional Portfolio management solution for a low annual fee of 0.40%. Fees are charged and deducted from your account(s) on a quarterly basis.
Portfolios are typically constructed using Exchange Traded Funds (ETF’s) and individual stocks. The ETF’s we use on our preferred custodian platform have their own internal fees. TRG does not share in the fees charged by the ETF sponsors. Transaction fees on purchases and sales are assessed at our preferred custodian's current rate of $6.95 per transaction. As with ETF fees TRG does not share in custodial transaction fees
Yes. In selecting ETF’s for our client portfolios TRG has access to over 100 transaction-free offerings by our preferred custodian*. We always seek to utilize these investment options to minimize your portfolio costs.
In addition, for those clients placing $500,000 or more under management with TRG our preferred custodian can currently offer 30 days of transaction-free trading**. Since many portfolios are transferred in and require numerous sales and purchases to properly construct your portfolio this potentially amounts to a large cost savings for you.
*This list is subject to change. TRG does not guarantee that it will always purchase transaction-free ETF’s, especially when a particular asset class is not available.
**Offer subject to change or removal at any time.
If you would like information regarding the fees and minimum investment associated with the Risk Manager 1 (RM1) or Risk Manager 2 (RM 2) platforms please contact our offices. Please note that the additional costs and opportunities associated with our Traditional portfolios also apply to our Dynamic portfolios.
These strategies should be very appealing to an astute investor that wants to institute some form of buy-and-hold methodology while hedging their downside and providing ample opportunity for upside growth.
The RM1 strategy will build a portfolio then have an initial stop-loss established in order to protect capital. Conventionally if a stop-loss does not occur, the equity holdings will be reviewed annually with new stop-losses for the following year established on the current market price, or the original cost, whichever is higher.
It is the ability to immediately protect the downside after purchase and then to analyze the positions for adjustment which makes the RM1 a strategy an excellent alternative for traditional buy-and-hold investors who are seeking the benefits of long-term capital gain treatment.
Similarly, RM2 offers the discerning stakeholder the opportunity to protect capital while also looking to capture any gains afforded to them on price increase before subsequent moves lower. Once a security is purchased an initial stop-loss and upside target price are determined and implemented. As an issue appreciates to a target level, the initial and subsequent stop-loss will be adjusted upwards to protect capital and to potentially realize gains. Thus there is the potential for a more frequent recognition of short-term capital gains.
TRG does not recommend RM1 and RM2 to an investor whose primary objective revolves around fees. Instead, they should select TRG’s Traditional investment management portfolio and potentially accrue the benefits of a potentially lower investment management fee schedule versus other similar advisers / investment managers.
Yes, for accredited investors they are able to elevate their investing experience through our Alternative Investment platform offering. To receive information about this platform please fill out the Accredited Investor Questionnaire available at the Alternate Investment Tab.
Yes there are but unfortunately due to regulatory requirements, you will need to be an accredited investor to receive additional information.