Evaluating an Investment Adviser

Integrity and Honesty above all else.

Longevity.  Whose track record is it?  How long has the portfolio manager and other employees been with the firm?

Communication.  What does the adviser communicate?  How often and in what form?  Are his letters written by his company or another third party?  Or does the adviser provide his own analysis? 

Access.  Do clients have access to their own portfolio manager whenever they need it?

Portfolio manager’s education/qualifications.  Does he have more than the training by the company he works for?  What professional certifications does he have?  What is the breadth of his experience?

Registration.  Is the adviser registered with the SEC (or the state, for smaller advisers)? 

Compensation.  Is the adviser compensated based on how much he manages for clients or does his compensation present an incentive to trade frequently?

Privacy.  Is the non-public personal information of clients protected and held private?

Fiduciary Duty.  Is the adviser registered as an investment adviser and held to a fiduciary standard or is he registered as a broker dealer with no inherent fiduciary obligation?

Conflicts of Interest.  Does the adviser have affiliations that create potential conflicts of interest with his clients?