FAQ

HOW IS Our APPROACH DIFFERENT FROM MOST ROBO-ADVISORS?

Over the years industries have been subject to automation to keep costs down. With ROBO advisors you are offered cookie cutter approaches. Even though you may be assigned a “personal advisor” They will be implementing a similar methodology that I believe is not as effective to meet the challenges we have coming before us. Also, with ROBO advisors there are no track records of historical performance. You may be given what the market has done historically,  even this can be misleading as to what to expect in the future. We offer institutional style portfolio managers with decades of experience and track records to show how they have added value in the past. Also, with Arabesque Wealth Advisors you work with the same individuals that know you and your circumstances. As independent advisors allows us to find unique solutions to your circumstances.

What your broker/ Advisor isn't telling you?

Many firms have brokers or representatives that are essentially employees of the firm. Everything they do is for the firm. If they decide to leave the firm, you will be given another representative which may not be a good fit for you or have any experience. We work for you, not for a firm. Everything we do is to to attempt to use our vast experience to add value to your life that ultimately gives you peace  of mind.

Brokers, advisers generally adhere to an investment philosophy. Most adhere to modern portfolio theory which was established in the 1950s. Although this approach is still largely utilized today, we do not believe modern portfolio theory is the best approach when dealing with today’s volatile and constantly changing markets. Because of this, many brokers and advisers use lowered expectations to compensate for outdated methodologies. Although there is not a guarantee with any methodology, we utilize a proactive approach that we believe is better able to handle the demands of the current investment environment as opposed to hoping that an outdated approach will become effective once again.

What is Benchmarking?

Portfolio managers are measured against an index that best represent an investment approach. Equity managers will usually be benchmarked against an equity index such as the S&P 500 or the Russell 2000. Bond portfolio managers will be benchmarked against a bond index. Many studies show that most portfolio managers tend to underperform their benchmarks. This is generally true as most people that play basketball or baseball do not have the performance stats to make it in the majors. We focus on portfolio management that truly adds value as compared to passive approaches.

What do we charge?

Many in the investment industry have had to compete with the fee contraction that has occurred due to automation. Although this can be a good approach when it comes to the administration of the investment process, it assumes all investment managers are the same. They are not. We do not utilize a cookie cutter approach that can be easily accommodated by a universal fee structure. Your fee will be dependent on the complexity and dollar amount of assets managed. That said, you have complete transparency as to what the costs will be for your individual plan. We are not the cheapest as the dollar menu at a fast food restaurant. But we believe we are extremely competitive considering the added value you receive.

Any other questions?

Please feel free to contact us to learn more about how we will help you.