PruFidSM Portfolio Management Service
The PruFid Portfolio Management Service provides you with ongoing management of your investment portfolios.
We realize that hiring somebody to manage your money requires a great deal of trust. That’s why we do everything possible to ensure that you will be happy with our services and the value that we provide. There are several good reasons why (we feel that) the PruFid Portfolio Management Service is superior to nearly all similar services available anywhere:
- Low cost. We encourage you to “shop around” for lower fees. We’re confident that it will be extremely difficult to find any lower than ours for those with sufficiently large portfolios. Unlike many other pursuits, the adage, “you get what you pay for” does not apply in the financial services area. If you pay more in fees, you have less money to invest, which tends to cause your overall returns to be lower.
- Money-Back Satisfaction Guarantee. We guarantee your satisfaction with our service. If you are not absolutely pleased with the value we have provided, we will refund your fees paid (see here for details).
- Non-Discretionary Management. We generally insist on non-discretionary management. Unlike most similar services available elsewhere, you don’t need to “trust” us to make prudent trades on your behalf. We believe that the best way to manage a portfolio is to fully engage you in the process so that there are never any “surprises.” Any time we believe that any adjustments should be made to your portfolio, we make our recommendation to you in writing, along with detailed rationale and pros and cons of the contemplated action. You are then able to either approve, modify, or reject the contemplated action. We will not execute a transaction on your account until you approve it first. We typically don’t recommend such adjustments any more often than once every two or three months—to do so more often than that is often imprudent.
- Access to Institutional Mutual Funds. In addition to funds available to all retail investors (e.g., those of Vanguard), our clients are able to invest in the sophisticated institutional funds of Dimensional Fund Advisors (DFA). These funds are designed primarily for institutional investors and may represent the best funds available in several asset classes. For a list of funds we currently recommend for each of several asset classes, see here.
- Prudent Investing. Our investing strategies are consistent with the legally recognized Prudent Investor Rule. For more information on our investment philosophy, see here.
- Evidence-Based Investing. We base our strategies on principles that have been demonstrated by academic research, never "hunches".
For more information on why hiring an investment advisor might be beneficial, see here.
For the PruFid Portfolio Management Service, PruFid receives an annual fee based on percentage of assets under management as per the fee schedule below, paid quarterly in arrears, computed based on the value of the portfolio at the end of the quarter.
| Fee Schedule for PruFid Portfolio Management Service | |
|---|---|
| First $10,000,000 | 0.235% per year (i.e., 0.05875% per quarter) |
| Next $10,000,000 | 0.11% per year (i.e., 0.0275% per quarter) |
| Next $30,000,000 | 0.055% per year (i.e., 0.01375% per quarter) |
| Next $50,000,000 | 0.03% per year (i.e., 0.0075% per quarter) |
| Subsequent amounts | 0.02% per year (i.e., 0.005% per quarter) |
There is a minimum annual fee of $30,000 per year (i.e., $7,500 per quarter) for the PruFid Portfolio Management Service. Generally, PruFid will not accept accounts of less than $3,000,000, but exceptions may be made on a case-by-case basis.
In addition to the above fees which PruFid receives, clients will be responsible for mutual fund expenses and custodial fees.
PruFid currently utilizes Charles Schwab as its principal custodian, primarily due to their low fees.
This web page contains the current opinions of Eric E. Haas at the time it is written—and such opinions are subject to change without notice. This web page is intended to serve two purposes:
- To educate the public; and
- To provide disclosure of Mr. Haas' opinions to prospective clients. We believe that prospective clients are well-served by being made aware of what they are buying—and what they are buying is advice that is based on these opinions.
We believe the information provided here to be useful and accurate at the time it is written. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed.
No investor should invest solely on the basis of information listed here. Before investing, it is important to consult each prospective investment's prospectus and consider both its risk/return characteristics and its effect on your overall portfolio.
This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, PruFid recommends consultation with a qualified tax adviser, CPA, financial planner, or investment adviser. If you would like to discuss the rationale or support for any particular idea expressed on this web page, feel free to contact us.