Fees

 

The business model supporting DIA’s mission statement is fee-only. This means DIA does not receive commissions of any kind which allows DIA to remain free from conflicts associated with commission based transactions prevalent within the financial services industry. The only compensation received by DIA is provided directly from you the client. DIA’s conflict free approach to asset management and financial planning ensures clients receive unbiased advice based upon what is best for the client’s unique financial situation.

 

Asset Management

 

 

Assets Under Management        Annual Fee Rate

 

          

 

 

 

 

 

 

The minimum quarterly fee is $500. Fees higher or lower than those listed above may be charged where circumstances so warrant. Although DIA’s asset management service does not require a minimum account size, it is DIA’s belief that for clients to cost effectively benefit from DIA’s services, a minimum account size of no less than $250,000 should be maintained.

 

 

 

Financial Planning

 

For on-going financial planning, a fixed annual retainer will be charged and billed quarterly in arrears. The annual retainer fee includes the Asset Management Service. The annual retainer fee is computed based upon the greater of .25% of assets under management or the minimum fixed annual retainer amount. The fixed annual retainer fee for 2011 is $4,050. Under special circumstances, the annual retainer fee may exceed the stated fee structure depending on the complexity of a client's situation.

 

Other Costs

Each mutual fund/ETF has an associated expense ratio that represents the investors annual cost to invest in the fund/ETF. DIA uses low cost index/passively managed mutual funds/ETF’s to construct client portfolios. Expense ratios among the various funds/ETF’s within a client’s portfolio will range from approximately .10% to .30%. DIA does not use load funds (commission based) or funds/ETF’s which charge 12b-1 fees. To create client portfolios there are transaction costs associated with establishing the initial portfolio. Depending on the type and size of trade, these costs will vary from $16 to $22 per trade. A typical client could expect to have a portfolio which consists of 10 to 15 mutual funds/ETF’s, and therefore expect transaction costs between $160 to $330 to establish the initial portfolio. Portfolios are rebalanced periodically which result in transaction costs. On an annual basis clients should expect transaction costs associated with rebalancing to be significantly less than the cost to establish the portfolio.

Depending on a specific client’s circumstance, DIA may use bond ladders within a client’s portfolio to control risk and provide income. A typical bond transaction would cost $2.50 per bond. Costs to establish a bond ladder would be dependent on the number of bonds within the bond ladder.

At the heart of DIA’s investment approach there is the fundamental belief that a direct correlation exists between portfolio performance and minimizing costs. As a result, DIA places great emphasis on minimizing transactions and controlling costs for clients. Ultimately, DIA’s success is driven by helping clients achieve their investment goals.

2011 Diablo Investment Advisors, LLC     |  Privacy Policy  |   Contact: david@diabloinvest.com

> Asset Management

 

> Financial Planning

 

> Fees

 

 

Services

 

First $5 million

Next $5 million

Over $10 million

0.25%

0.10%

Negotiable

Managing the complexities of substantial wealth is a full-time job. At DIA, we make your life easier by managing the day-to-day financial decisions and the long-term planning required to grow your wealth.