Why consider a Separately Managed Account?

A separately managed account gives you the opportunity for personalized tax management. Individual ownership of the portfolio’s securities can offer tax advantages not available through a mutual fund. Additionally, you may  restrict purchases of securities in industries (such as tobacco, gaming, and alcohol) whose products or services might conflict with your beliefs.

How is Phronimos Capital compensated?

Fees are charged based on the value of assets under management. Or, for certain qualifying investors, fees may be based on account performance. Fees are not earned through commissions or through the sale of any investment product.

Does Phronimos take custody of client assets? If not, where are the accounts managed by Phronimos Capital custodied?

Accounts managed by Phronimos Capital are typically custodied with Interactive Brokers, a fiscally-stable provider with global operations. Except as described below, Phronimos does not take custody of client assets. 

Phronimos Capital has discretionary trading authority over client accounts and management fees. Phronimos obtains discretionary authority to invest and manage client assets pursuant to an investment management agreement. The client remains the account holder of the brokerage account at the broker/dealer, which is authorized by the client to take investment instructions from Phronimos pursuant to a form of limited power of attorney signed by both the client and Phronimos. Phronimos will not be able to withdraw funds or assets from client accounts; however, management fees are deducted automatically from his or her account on their due date. Phronimos sends the client and the broker/dealer (acting as custodian at the same time) an invoice showing the amount of the management fee, value of the client assets on which the fee was based, and the manner in which the fee was calculated. Such custodian also sends the client a statement, at least quarterly, indicating all amounts disbursed from the client's account, including the amount of fees paid directly to Phronimos from the account.


What is the minimum beginning account size?

The minimum beginning account size is US$500,000 or the equivalent in foreign currency.