Frequently Asked Questions

1. How much do your services cost?

Annual fees based on market value of assets at following rates:
Equities:  1.00%
Fixed Income:  0.50%
Mutual Funds:  No charge (Including money market funds)

2. How do you calculate and collect fees?

Fees are calculated based on month end market values and charged directly from the account around the 10th of the following month.

3. Do you pay or receive referral fees to/from third parties?

No, and we have no intention of doing so in the future.

4. Who is your custodian for stocks, bonds and mutual funds?

Charles Schwab & Co.,Inc.

5. How much do they charge for their services?

No charge for holding assets.  Charles Schwab & Co.,Inc. charges $8.95 per trade, regardless of the number of shares involved (If household assets are greater than $1 Million, or clients agree to electronic only information on their account(s) if less than $1 million).  This flat fee is levied instead of the typical 5 cents per share charge that would be passed on by a bank custodian.

6. Do you have Insurance?

Insurance for stocks and bonds is provided by the Securities Investor Protection Corporation (SIPC) through Charles Schwab & Co.,Inc., the custodian.

7. What's your track Record on investments?

While complete, audited data are shown on the “Investment Performance” page, equity returns have surpassed the S&P 500 for 9 of the previous 10 years by an average of 500 basis points (a basis point equals 0.01%) per year.

8. Do you allocate Investments among mutual funds or do you Invest in individual stocks and bonds?

Portfolios are constructed primarily with individual securities.  If a mutual fund is utilized for investment in a specialized area, the mutual fund is excluded from fees.

9. What's your investment style: Value, Growth or Core?

Core with a modest value bias. To clarify, value investors tend to look at balance sheets when valuing companies, growth Investors tend to focus more on the income statement and prospects for income growth, and core Investors blend the two approaches.

10. What size companies do you Invest in?

The full range of size from micro-cap to mega-cap companies with a plurality of investments in large cap blue chip companies.

11. What's your typical rate of portfolio turnover?

Less than 20% per year.

12. What's the typical ratio of long term to short term realized capital gains?

Realized long term capital gains are typically 5 to 10 times the amount of realized short term capital gains.

13. Which do you prefer in a company: increasing cash dividends or stock buybacks?

We generally prefer companies with dividend payout policies related to earnings. We also believe stock buybacks should be limited to amounts granted to management in the form of stock options and stock grants.

14. If I already have an account at Charles Schwab, how hard is it to transfer it to your management?

You need only execute A Limited Power Of Attorney form in favor of Beplat Asset Management. All existing features of your Schwab account(s) remain the same for you.

15. How do I open an account for you to manage for me?

You need to sign an Investment Advisory Agreement form With Beplat Asset Management, and a new Custodial Account Agreement form with Charles Schwab & Co.,Inc. Charles Schwab & Co.,Inc. will handle the operational aspect of opening an account for you and receiving assets from your prior custodian.

16. Do you have an account minimum size?

$500,000 for Individuals, $750,000 for Charities.

17. How often do you communicate with clients?

We anticipate contacting each client monthly via telephone or e-mail to discuss their portfolio(s). We will also publish on our website a quarterly economic and market commentary.  We are committed to responding to clients on the same day they contact us with any request.

18. How do I close an account?

Call Me and I will confirm to you in writing the day we cease managing your portfolio. Charles Schwab & Co.,Inc. requires written notice revoking our Limited Power Of Attorney over your account.

19. You're a CFA. What does that mean?

The Designation of CFA, or Chartered Financial Analyst, is generally considered the most difficult certification to obtain within the investment management profession.  In the more than 45 years since charters were originally conferred, Only 100,000 have been awarded worldwide. My charter was earned in 1978.