Things to consider and questions to ask . . .
-
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?