Frequently Asked Questions
“What are the advantages of joining Weber Asset Management?”
There are many reasons why clients across America have stayed with us for years. Here are the advantages most frequently cited by our clients…
- Jack Bowers, Our Acclaimed Investment Strategist.
The model portfolios in Jack Bowers’ Fidelity Monitor & Insight newsletter have produced market-beating profits for more than 25 years. Even better, they have done so with less risk than the market (as represented by the Wilshire 5000 Index).
In fact, in a ranking of dozens of investment newsletters, Fidelity Monitor & Insight was ranked third for risk-adjusted return for the past 25 years. (Source: Hulbert Financial Digest, April, 2015. Past performance does not guarantee future results.)
- A portfolio personalized for you.
Not one dollar is invested for you until we talk to you and learn about your financial goals and risk tolerance. Only then will your portfolio be custom-crafted to fit your needs.
- Timely trading.
It’s difficult to be objective about your own money. On the other hand, we trade on your behalf precisely when Jack Bowers’ analysis tells us to take action, without regard to emotions or the headlines of the day.
- Professional discipline.
The long-term discipline we impose on your portfolio can be an important ingredient in the success of your investment. By developing a strategy for you, and sticking to it, we expect to deliver superior performance.
- Peace of mind.
Sleep better at night knowing professionals are watching your nest egg. Stop worrying about conflicting information in the media. Let us sort through it all for you.
“Why do you focus on Fidelity mutual funds?”
Some investment advisors try to watch over thousands of mutual funds. We think that’s a mistake. Much smarter, we strongly believe, is to focus all our attention on one fund family, and by knowing those funds inside and out, we can deliver better results to you.
We specialize in Fidelity mutual funds because …
- With more than 200 no-load mutual funds, Fidelity provides us with a choice for every slice of the market. And their expense ratios are some of the lowest in the industry among “active” managers.
- They are not afraid to continually spend millions on leading-edge technology.
- No firm spends more money, or dedicates more resources to stock and bond market research than Fidelity.
- When it comes to hiring, Fidelity has a well-deserved reputation for a highly rigorous selection process, ruthlessly screening to find the brightest portfolio managers.
And because we know Fidelity so well, we can, in essence, give you the advantages of “insiders” while being completely independent. In other words, we owe nothing to Fidelity. Our only loyalty is to you.
“What is your minimum account size?”
We generally require a minimum of $200,000 to start an account.
“I don’t know you personally – how can I trust you with my money?”
You may not know us (although we encourage you to visit our office or call us with your questions) but you certainly know Fidelity Investments. Your account at Fidelity is in your name and always under your control. We never have access to your money – we are merely authorized to trade mutual funds for you in your account.
“What do you charge for your services?”
First, recognize that one of the biggest benefits of investing with a “fee-based” advisor is that you never pay a commission. That means you never need worry about the conflict-of-interest often found when dealing with other types of financial professionals.
Instead, we use an asset-based fee. This approach aligns our interests with yours; we want your account to rise, just like you do.
Your assets in typical “diversified” mutual funds will be billed as follows:
1.2% for the first $100,000,
1.0% for the next $400,000,
0.8% for the next $500,000,
0.7% for all assets over $1,000,000.
For assets in Fidelity Select funds:
A flat rate of 1.3%.
Fees for our management services are billed quarterly in advance. (This fee schedule does not apply to our 401(k) plan program.)
“What are Fidelity’s fees?”
All mutual funds we use are no-load funds. Some Fidelity funds charge a small fee if shares are not held for a specific length of time. This is rarely an issue for our clients.
“How will I know what’s happening in my account?”
You will have 24/7 access to your account via the fidelity.com web site. In addition, Fidelity sends trade confirmations to you immediately after any transaction, plus monthly statements.
Weber Asset sends you a quarterly Report to Clients commentary and your personal Performance Report, showing your true net rate of return.
“How will you allocate my portfolio?”
After you become a client we ask you to fill out our confidential “Investor Profile” questionnaire. The answers you provide give us a clear picture of your goals, your financial background and investment experience. Then, in consultation with you, we design a portfolio to meet your investment goals, time horizon and your risk tolerance. Nothing is bought or sold until you approve our proposed investment strategy.
“My broker takes a commission on some trades and investments in my account. Do you?”
No! Our interests are aligned with yours. The only fee we earn is the quarterly management fee you send us, or have us deduct from your account. We receive no commissions of any kind from any mutual fund or brokerage firm.
“Who makes the investment decisions at Weber Asset Management?”
Jack Bowers is our Chief Investment Strategist. He and Ken Weber, President of Weber Asset Management, are responsible for all investment decisions.
Jack Bowers, through his newsletter, Fidelity Monitor & Insight, has established himself as the leading expert on America’s pre-eminent mutual fund group, Fidelity Investments. Articles in The Wall Street Journal, Money and the prestigious Hulbert Financial Digest confirm Jack Bowers’ high standing among all mutual fund analysts.
A graduate of Washington State University, Jack Bowers spent twelve years with Hewlett Packard. His background in electrical engineering gives him a technological edge; he attacks financial problems with a scientist’s cold resolve. And when he joined Weber Asset Management in 1992, he agreed to give our clients an edge by having our accounts trade, whenever possible, before a signal is given to Fidelity Monitor subscribers. After your account is set up, all trades in your portfolio are based upon direct instructions from Jack Bowers.
Ken Weber is also one of America’s leading mutual fund experts. For ten years he published Weber’s Fund Advisor, a highly-regarded financial newsletter. His investment advice has been quoted in most major financial publications, including Barron’s, Money, The Wall Street Journal and The New York Times.
After graduating from Hofstra University (B.A.) and Brooklyn College of the City University of New York (M.S.), Ken spent fourteen years developing a successful business. During that time mutual funds were his passionate avocation, and in 1983 he began publishing Weber’s Fund Advisor. He discontinued the newsletter in 1993 to focus his energy on providing the best possible service for his managed account clients. Weber Asset Management has been a Registered Investment Advisor firm since 1987.
“Some investment advisors say they ‘time’ the market and move to cash during downturns. Why don’t you?”
Market timers make the assumption that consistently predicting the future is an achievable feat. Yet academic studies demonstrate that long-term success in market timing remains elusive even for the best-known timers. We estimate over a 10-year period fewer than 5% of market timers will actually exceed the S&P 500, and those that do will beat it by only a slim margin. After all, a timer has to be right twice – when to sell and when to move back into the market.
Instead, we strive to keep you in funds performing well in the current market environment. Over the long-term, we are confident this approach delivers better results.
“How can I get hold of my money if I need it?”
Just contact us – the account is your money in your name. Upon instructions from you, we can arrange for Fidelity to have your money sent to you by check, wired to your bank, or transferred to another of your accounts.
“What if I decide to cancel my relationship with you?”
No problem. Contact us and we will stop managing your account. There are no cancellation penalties, and any fees you’ve paid to us in advance will be refunded on a pro-rated basis.
“How do I get started?”
Request an information package. Then simply sign and return the Letter of Agreement. As soon as your account is opened we begin monitoring your account on a daily basis. We handle all the trading and administrative details associated with portfolio management.
Any other questions?
You should never allow anyone to manage your investments until you feel completely comfortable. If you have any other questions about our program, please don’t hesitate to give us a call at (800) 438-3863.
We look forward to talking with you.