Account Management Plans
Plan A - Passive Asset Allocation:
- Management Style - Passive Management
- Uses a “buy and hold” approach with semi-annual asset allocation rebalancing in an attempt to mirror index returns per weighted strategic asset allocation.
- May invest using individual stocks, bonds, ETFs and/or long term options (LEAPS)
- Minimum annual investment management fee per year of $240*
| Account Valuation | Annual Fee |
| First $500,000 | 1.25%, but no less than $240 |
| $500,000 - $1,000,000 | 0.90% |
| Over $1,000,000 | 0.50% |
Plan B - Moderately Passive Asset Allocation:
- Management Style – Light/Moderate Management
- Adjust tactical asset allocation mix with changing market conditions.
- Majority of account in “buy and hold” positions with less than 50% of account actively managed in any given month
- May invest using individual stocks, bonds, ETFs and/or options
- Minimum annual investment management fee per year of $500
| Account Valuation | Annual Fee |
| First $500,000 | 1.50%, but no less than $500 |
| $500,000-$1,000,000 | 1.25% |
| $1,000,000-$5,000,000 | 1.00% |
| Over $5,000,000 | 0.75% |
Plan C - Moderately Active Asset Allocation:
- Management Style – Moderate/Active Management
- Adjust tactical asset allocation mix with changing market conditions.
- Majority of account actively managed with less than 50% of account in “buy and hold” positions
- May invest using individual stocks, bonds, ETFs and/or options
- Minimum annual investment management fee per year of $750
| Account Valuation | Annual Fee |
| First $500,000 | 1.75%, but no less than $750 |
| $500,000-$1,000,000 | 1.50% |
| $1,000,000-$5,000,000 | 1.00% |
| Over $5,000,000 | 0.75% |
Plan D - Active Asset Allocation:
- Management Style - Active Management
- Actively manage and trade account on a regular and frequent basis
- May invest using individual stocks, bonds, ETFs and/or options with the majority of positions opened with options expiring in front two months
- Minimum annual investment management fee per year of $1,000
| Account Valuation | Annual Fee |
| First $1,000,000 | 2.00%, but no less than $1,000 |
| $1,000,000-$2,000,000 | 1.75% |
| $2,000,000 - 5,000,000 | 1.50% |
| Over $5,000,000 | 1.00% |
AF Capital Management, LLC also offers investment advice through consultations for an hourly fee. The deliverable from such consultations is typically a customized financial plan for the client or advice on a retirement plan held with the client’s employer. Payment is due upon delivery of written plan/advice. A two hour minimum is required.
Additional Provisions:
- Investment management fees are separate from any transaction, exchange, wire transfer, margin interest or account fees charged by the custodian holding your portfolio. AF Capital Management is not compensated per trade by client or broker/dealer.
- Our primary custodian, Interactive Brokers, charges commissions per trade with a minimum monthly fee of $10 per account for accounts with a balance less than $100,000 at the end of each month.
- Our fees are negotiable based on the parameters of the investment, i.e., amount invested, term and complexity of structure.
- AF Capital Management does not receive any performance based fees.
* An account minimum of $50,000 is required unless automated monthly recurring deposits of at least $100 are scheduled and maintained.