September 13, 2016

Fees

Our Simple, Transparent Fee Structure

At Delta Investment Management, we understand the importance of minimizing the performance drag and potential incentive conflicts of fees.  Hence, we offer a simple and transparent, competitive flat fee based on your portfolio’s size.  Our fee is designed to be easy to understand and puts your interest first – no hidden sales commissions paid to Delta and no performance fees which reward taking unnecessary risk to take a portion of your profits from you.  The only additional fees you may incur are trading fees directly billed by the third-party custodian housing your portfolio.  But, we want to keep these costs as low as possible, too.  Depending on the specific investment programs selected, you may not pay any trading commissions and in all cases, Delta works hard to minimize trading related costs.

Low Costs Passed Directly On to You

As an institutional investment firm, Delta has access to no-load funds and institutional share class funds that have lower expense ratios than retail share class funds.  In all cases when Delta buys lower priced institutional share class funds, these savings are passed 100% on to you.

No Commissions Paid to Delta

We believe Delta’s fees are often lower than other firms’.  Why?  Many asset managers charge commissions on products they sell in addition to management fees.  Some, like annuity commissions, can be upwards of 10%.  This creates potential significant conflicts of interest.  Often, better and more affordable investment solutions exist, but commissioned financial professionals are incentivized to sell products providing higher returns for them.

Mutually Aligned Interests

Some firms base their fees on performance, claiming it encourages mutually successful investing.  But performance-based fees may incentivize the manager to chase short-term returns to maximize fee collections.  Chasing returns can come at the expense of proper risk management.  Other firms determine their fees by asset class, presuming bond management should be cheaper.  Yet this can incentivize the manager to maintain an inappropriate amount of equity exposure.  Both scenarios ignore your personal financial situation and long-term goals.  Finally, going totally low cost may seem appealing.  But you get what you pay for which can amount to a no-service, do-it-yourself approach.  A do-it-yourself approach works if managing your life savings is your forte and you are always cool-headed and rational about volatile markets, and your idea of retirement is full-time investment research and management.

When comparing portfolio management services, remember fees misaligned with your interests can jeopardize your retirement goals.  This is why at Delta Investment Management we believe a straightforward investment strategy with transparent fees based on the size of your assets is the best way to help clients.  When we succeed, our clients succeed.


Contact us by phone (415) 249-6337 to find out how we can work together to help you manage your investments or fill out this short form and we will contact you.