Who is Main Management?
Main Management LLC is a California Limited Liability Company
formed in August 2002. We are a Registered Investment Advisor
(RIA) with the Securities and Exchange Commission (SEC) and are
able to transact business throughout the United States. Our headquarters
is based in San Francisco, California. Main Management has over
$250 million under management in Separately Managed Accounts for
Family Offices, Foundations, Pension Plans, Trusts and Individuals.
The employees of the Company have a combined 145 years of Wall
Street experience at the highest levels. (BIOS
link)
Why should I choose Main Management as my investment manager?
Currently there are over 600 ETFs so choosing the right ones require
a specialized knowledge of the ETF space. Our widely known and
respected investment professionals have over 145 years of combined
Wall Street experience at the highest levels. They have been using
ETFs since before the firm’s inception in 2002. Couple our
knowledge and experience with the growing product lineup in the
ETF space and we are able to provide our clients with superior
risk adjusted net returns. Main Management has an impressive five
year track record, a relatively long time for managers devoted
to this strategy.
What is your minimum account size and management
fee?
We manage both large and small accounts. Our minimum account size
is $1,000,000 although exceptions can be made based on several
factors. Services include quarterly reviews, portfolio rebalancing
and tax-management strategy.
Main Management is a fee-only advisor.
Management fees will not exceed 1% of assets under management.
Our management fee is assessed quarterly.
What other expenses are there?
Commissions on trades assessed at institutional rates through
our relationship with the custodians of your assets.
Withdrawals? Termination?
Minimum notice is required.
What Type of Reports or Contact will I have with Main
Management?
You can call anytime. Main Management furnishes a Quarterly Performance
Report which includes a detailed analysis of account performance,
asset allocation, positions, IRR. Clients receive Monthly Account
statements from the Custodian (a brokerage account statement.)
which includes trade information, cost basis and other information.
What brokerage firms do
you use? Currently, client assets are held at Charles
Schwab, TD Amertitrade and BankAmerica. We do not have custody
of your assets; the individual brokerage firm designated by the
client holds them. We cannot disburse money from your accounts.
Accounts at these firms are insured by the SIPC and additional
private insurance.
The custodian provides
account services including monthly statements, year end tax statements,
realized gains and losses reporting, account access through the
internet. Institutional trade execution and commission rates.
Are the investments in my
accounts safe? We do not take custody of your funds.
They are held at securities brokerage firms as custodians. These
accounts are insured by the SIPC and private insurance. All account
assets are held in your name or in trusts and retirement plan
entities. No one can access or distribute funds from the accounts
without your permission and knowledge.
Does Main Management require
trading discretion? Yes, however all initial trades when
setting up your account will be discussed with you. You can choose
to have contact before any rebalancing or tactical trades are
made in your account. Also, to better serve you regarding tax
planning, contact should be maintained to update your tax situation
regarding taking advantage of unrealized gains or losses to minimize
taxes paid.
Do you offer tax and estate
planning or advice on insurance in addition to financial planning
and portfolio management? At Main Management each of
us has a strong knowledge of these areas and incorporates these
matters into investment strategies. However, it is recommended
that our clients use specialists in each area estate planning
with a Trust and Estates attorney, tax related matters with a
C.P.A., and insurance with a qualified insurance agent.
Auditor
BDO Sideman
Gross Returns versus Net Returns? Pre-tax
After Tax?
We believe investors are always better served by minimizing the
differential between gross returns and returns realized pre-tax
and after-tax. Investors should be concerned with what they get
to keep at the end of the day. ETFs are the elegant solution—diversified,
low cost, low turnover and tax efficient.
Why is a Passive approach to investing better than an
Active approach?
About 75% of active managers under perform the passive indices
against which their performance is measured during any given year.
Over time, this percentage increases leaving only a few active
managers that outperform market (benchmark) averages. Passive
managers outperform active managers by about 2% per year. That
2% is essentially the costs of active trading and market timing
strategies—commissions and trading spreads, and marketing
expenses—sales loads and 12b-1 fees paid by investors. Also,
active management in taxable accounts is usually not tax efficient
because of the constant turnover of assets in the desire to achieve
higher returns which creates capital gains taxes paid by the investor
each year. After-tax returns in actively managed accounts can
be 30% lower, or greater, over longer time periods.
Passive and index investment strategies are not only superior
to active strategies in performance, but are particularly advantageous
in taxable accounts, which are subject each year to capital gains
taxes. Active managers must "turn over" money far more
rapidly than passive managers as they try to boost performance
by trading stocks or timing markets. Consequently, investors in
actively managed funds or portfolios are usually subject to far
higher capital gains taxes than passive and index investors.
Why is rebalancing important?
Rebalancing a portfolio maintains the original investment strategy
and risk profile. CAN ADJUST AS YOUR SITUATION WARRANTS. Over
time, certain asset classes will outperform other asset classes.
Annual rebalancing shifts exposure from assets overvalued due
to market performance to undervalued investments. This is consistent
with a buy low, sell high strategy. We rebalance only when asset
classes, and particularly, the equity/fixed income ratio, gets
out of balance far enough to produce a significant expected difference
in returns and volatility.
What are the benefits of
ETFs
- There
are many benefits to utilizing ETFs versus mutual funds or individual
securities including:
- Ease of Diversification
- Tax and Cost Efficiency
- Low Turnover
- Low Expense Ratios
- Small Capital Gains Distributions
- Liquidity and Pricing
Press Kit / Media
Our investment professionals are widely quoted by media sources.
Main Management has been featured in investment and personal finance
publications such as Fortune, Wall Street Journal, Businessweek
and The New York Times. We are available to provide media sources
with information and quotes on subjects concerning ETFs, Investment
Theory and Practice, Money Management.
Please contact us at 800-ETF-XPRT.
How do I become a client of Main Management?
It is helpful to begin on the telephone or with a face-to-face
meeting. This initial contact allows us to begin to understand
and analyze your unique financial situation. If we decide to move
forward, we will e-mail or mail you our ADVII, current client
references, and documents for establishing a business relationship
as well as documents for setting up and transferring brokerage
accounts, if necessary.
We will oversee the account opening
and transfer process, review your current holdings, discuss financial
issues relevant to your investments, develop a plan, refine it
if necessary, then implement it. We are also available for answering
investment related questions, handling changes in accounts, and
other investment matters on an ongoing basis.
An investment advisor disclosure document (ADV-II substitute)
and current client references are available upon request.
Our
contact information is as follows:
Main Telephone: (866) ETF-XPRT
(415) 217-5800
FAX: (415) 217-5803
E-MAIL: docker@mainmgt.com |
