Some of the major differences between QSI's core portfolios and mutual funds:
Better control over taxes: ETF's and index funds offer a unique opportunity for investors to benefit from the vehicles' inherent tax efficiency while gaining exposure to a portfolio that is potentially more diversified. Typically, investors only pay taxes on the capital gains they realize. In addition investors can align their portfolios with their tax strategies. Mutual funds on the other hand, may carry embedded gains, making shareholders liable for gains they never realized.
Simple Fee Structure: QSI charges a simple, clearly stated annual fee based on the size of the account. This is another level of transparency that gives investors peace of mind. In many cases this fee is tax deductible but you will need to confer with your tax advisor prior to any deduction. The expenses of mutual funds are not as often clearly stated. Mutual funds are likely to have other expenses that are not always clearly stated such as sales and distribution expenses and custody fees.
Diversification: Utilizing ETF's provides broad diversification with less risk associated with style drift. Active managers and mutual fund managers sometimes abandon their investment styles in an attempt to improve returns. This can lead to style drift or security overlap which can dramatically alter the risk return profile of the portfolio and stray away from the investors' original objectives.
Transparency: Can access account holdings 24 hours a day, 7 days a week whereas many mutual funds and independent investment managers only reflect top holdings or give access to all current holdings on a quarterly or less frequent basis. Also ETF's can be traded any time during normal market hours while mutual funds and some investment accounts have limited trading times or costs to buy in or get out of a certain investment.
One Easy Statement: Our clients receive one easy to understand statement and integrated performance report.
VALUE OF ADVICE
CORE PORTFOLIO BENEFITS
Whether your financial goals are for retirement, college funding, a down payment on a new home, or another objective,
we believe you deserve the same investment opportunities that are available to institutional investors. QSI's core strategies are easy to implement, understand and provide quality management and service. Through our network of Financial Professionals
and our advisory services, our clients receive expert advice and quality management on all of their accounts.
Consultative Process: At QSI, we recognize the importance of matching a client's risk tolerance with their return expectations. Our Investment Policy Questionnaire helps the Financial Professional and our client determine a portfolio that best suits their investment objectives, comfort level and time horizons.
Customized Investment Policy Statement: The responses on your Investment Policy Questionnaire will help determine your Investment Policy Statement. If you accept this policy statement, this document then becomes the "investment guide" to assist in managing this account within the parameters established and to the stated policy objectives.
Ongoing Communication and Guidance: As markets and life situations change so will your investment objectives and needs. QSI recognizes the importance of on-going monitoring of your investment accounts for regular evaluation and re-balancing to keep it aligned with your risk and return parameters. In the same manner, your Financial Professional is there to periodically review your IPS, keep current on any changes in your financial situation and always do the best to stay on course with your investment discipline.
BUILDING A PORTFOLIO AROUND QSI CORE PORTFOLIOS
QSI's core portfolios allow an investor to invest simply without sacrificing sophistication. Constructing a low cost, tax efficient and managed core portfolio has never been easier. Utilizing a QSI core portfolio strategy and satellite investments, clients can manage the ups and downs of market cycles with more consistency. Once reserved for only wealthy individuals and institutional investors, QSI's core portfolio strategy provides diversified portfolios of managed accounts customized to the unique return and risk of characteristics of each individual.
ADVANTAGES VS. MUTUAL FUNDS
BUILDING A PORTFOLIO AROUND QSI CORE PORTFOLIOS
Establishing a core portfolio can help investors navigate through unpredictable markets.
Focuses on allowing investors to enhance their portfolios by adding shorter-term tactical "satellite" investments, which are designed to opportunistically take advantage of market trends or special investment situations.
Some of the benefits of QSI's Core Portfolio Strategies:
Performance/Managing Risk: Help advisors and investors pursue optimal performance at any given risk level. Investors can seek the performance they need while managing their risk tolerance.
Customization and Control: Investors have the ability to choose between a variety of portfolios with specific return and risk parameters.
Portfolio Transparency: Investors have 24/7 access to all account information via the Fidelity website. This includes performance securities holdings, transaction history, gain/loss information and all fees associated with the account.
Diversification: By utilizing strategies with ETF's and index funds, QSI can offer broad or narrow exposure to virtually any market segment - both domestically and internationally.
Professional Management: Investors have access to professional money management tools that were previously reserved for only institutional clients and wealthy individuals.
Tax efficiency: ETF's and index funds offer a unique opportunity for investors to benefit from the vehicles' inherent tax efficiency while gaining exposure to a portfolio that is potentially more diversified.
Lower Fees: Employing ETF's for asset class investing provides broad diversification across all markets at the lowest fee structure due to their inherent construction. It allows the advisor and client control of one key component of return - investment costs.
Low Minimums: An investor seeking to invest in a similar core portfolio as with QSI's would have to invest a few million dollars to open a separately managed account.
Change to: A similar core portfolio of individual stocks would require an investment of several million dollars. With QSI, the same diversification can be achieved at a fraction of the investment.
Convenience: In one account, investors get complete diversification and access to 24/7 account information.
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