iSectors^® Account Fees and Services

iSectors provides advisors and their clients a suite of 21 managed asset allocation models.  In addition, iSectors offers a module that allows advisors to develop customized ETF portfolios for their clients. All managed portfolios are independently custodied and maintained as separately managed accounts (SMAs) held in the client’s name. Advisors and their clients are supported through a turnkey web-based platform and comprehensive back-office services.

Acceptable account types include:

• Individual	• JTWROS	• IRAs	• SEP-IRAS	• Roth IRAs
• 401(k)	• UGTMA	• Institutional	• Trusts	• Foundations
• Endowments	• Pension

In some cases, depending on custody selection, international accounts can also be accepted. 

 

iSectors Allocation Models

iSectors offers a broad range of asset allocation models designed to meet the needs of a variety of investment objectives and client risk/return profiles:

• iSectors^® Domestic Allocation Series - Five diversified asset allocation models offer Modern Portfolio Theory (MPT)-based portfolios allocated among low-cost, domestic equity and fixed income ETFs.
  
  
• iSectors^® Institutional Allocation Series - Five MPT-based models offering portfolios diversified among domestic, international, and emerging market equity and fixed income (including high yield) ETFs. 
  
  
• iSectors^® Endowment Allocation Series – Based upon the investment methodologies of major university endowment portfolios each of the five endowment models combine a proprietary allocation of liquid alternative assets with domestic, international and emerging market equity and/or fixed income asset classes to create diversified all-weather portfolios in an effort to increase risk-adjusted returns. 
  
  
• iSectors^® Liquid Alternatives Allocation - A diversified, transparent, and liquid portfolio that includes absolute return strategies, private equity and real assets.
  
  
• iSectors^® Post-MPT Series – Two models using proprietary data and allocation strategies, developed exclusively by iSectors, in a more robust algorithm that provides the potential for increased returns with lower draw-downs (potential losses).
  
  
• iSectors^® Tactical International Allocation – Utilizes a proprietary momentum-based algorithm that diversifies among international ETFs.  This allocation is unique in that, unlike other iSectors models, it does not always remain fully invested and will rotate to cash.
  
  
• iSectors^® Inflation Protection Allocation – A strategic allocation model designed for investors seeking an allocation to investments offering the potential to defend their portfolio from the effects of inflation.
  
  
• iSectors^® Capital Preservation Allocation – A strategic model with the primary objective of seeking principal stability and a secondary objective to provide greater return potential than can be provided by cash or cash equivalents.

• iSectors^® Advisor as Portfolio Manager – A unique platform custom module that allows Advisors to build custom ETF portfolios for accounts when one, or a combination of our existing models, cannot meet all of the unique risk-return goals for a particular client.

 

iSectors Services

• Professional money management through iSectors asset allocation models
• Regular rebalancing
• Separately managed account
• Streamlined brokerage account setup
• Your account holds ETFs rather than Mutual Funds (whenever possible) to reduce costs
• Web-based, online access to your account
• Portfolio performance monitoring, updated daily, access anytime
• Liquidity - ability to buy/sell intraday
• IRAs, SEP-IRAS, Roth IRAs, other retirement accounts
• Annual tax reporting

 

Account Minimums and Fees:

iSectors Allocation Series	Minimum Investment	Annual Asset Mgt & Platform Fees*
Advisor as Portfolio Manager	$25,000	0.25%
Capital Preservation Allocation	$25,000	0.25%
Domestic Series	$25,000	0.25%
Endowment Series	$100,000	0.45%
Inflation Protection Allocation	$25,000	0.45%
Institutional Series	$25,000	0.35%
Liquid Alternatives	$50,000	0.45%
Post-MPT Series	$50,000	0.45%
Tactical International	$25,000	0.45%
*Current maximum fee.   Accounts with assets in excess of certain minimums may qualify for reduced platform fees. Custodial and advisor fees also apply—see below for more information.

 

Investment Management and Platform Fees
iSectors annualized investment management and platform fees summarized in the table above are based on assets under management. Fees are paid pro rata quarterly in advance. Fees range from 0.25% (25 bps) for more basic models to 0.45% (45 bps) for proprietary strategies.  Note: The minimum annual platform fee is $75 per account.  Assets in accounts with values exceeding $500,000 may qualify for reduced platform fees.

 

Custody and Trading Fees
iSectors offers advisors and their clients a variety of custody options. For as little as a flat $150 annually (regardless of account size or number of trades), accounts can be custodied at Fidelity or Pershing. For 0.10% (10 bps) annually, subject to a $200 minimum, Schwab is available as a custodian. The custody fee is paid pro rata quarterly in advance. Fidelity recently instituted a $75 account closing fee. TD Ameritrade is also available as a custody option, with a maximum custody and trading fee of 0.25% for portfolios that contain both ETFs and mutual funds, and 0.15% when portfolios contain only ETFs. Accounts in excess of certain levels may qualify for reduced fees at TD Ameritrade; however, all iSectors models custodied at TD Ameritrade are subject to a $300 custody and trading annual minimum fee. Note: Custom Module (Advisor as Portfolio Manager) account custody and trading fees do not qualify for flat-fee pricing and will be priced on a per-trade basis. Additional custody options are in development and will be available in the near future.

 

Independent Registered Investment Advisor Fees
iSectors does not provide financial planning or related services. Therefore, to ensure iSectors is an appropriate investment in your portfolio, investment allocations are only available through independent Registered Investment Advisors (RIAs) who will apply their own additional fee for their services.

ADDITIONAL FEE INFORMATION
Applicable platform and/or custody and trading fees may vary, dependent upon the Registered Investment Advisor’s broker-dealer affiliation and that broker-dealer’s respective contractual relationship with the platform provider.

iSectors recommends that all investors retain the professional services of an independent RIA who is qualified to provide personal financial planning or wealth management services. An independent RIA, familiar with you and your family’s financial situation, can assist you in coordination and management of:

• Portfolio Structure, Investment Policy, Asset Allocation
• Tax Planning
• Pre- and Post-Retirement Planning
• Risk Management
• Alternative Investments Allocations
• Trust and/or Estate Planning and Investment Consulting
• Endowment and Foundation Investment Consulting
• Retirement, 401(k), Pension Consulting
• Intergenerational Wealth Planning
• Private Foundation Services
• Corporate Trustee Services
• Charitable Giving Plans
• Other Philanthropic Objectives
• Consolidated Performance Reporting

For additional information on financial planning or wealth management services contact: info@isectors.com, 1-800-iSectors, or your independent RIA.