RIDLEY ASSET MANAGEMENT, LLC

What is your minimum account size?

We manage a range of accounts that are both large and small. Our minimum account size is $500,000. Exceptions can be made at our discretion based on several factors including the aggregation of multiple family or associated accounts, and on the premise of additional assets coming under management over time.

Clients can open/transfer an account with existing securities positions. These portfolios may have concentrated positions in a single stock or industry sector (i.e., technology), substantial embedded capital gains (i.e., acquired a stock at $10/share, went to $100/share, trades now at $20/share), or other issues. Ridley Asset Management works with clients to reposition these investments into our "All-Asset" Portfolios in a tax efficient manner.

Who has access to my account assets?

Ridley Asset Management does not take custody of client assets. Investments are held at securities firms as custodians. All assets are managed in separate accounts held in your name, in trust or in retirement plan entities. Access to your assets, or any distribution of funds requires your knowledge and permission.

Why is discretionary trading authority required?

Clients are requested to provide Ridley Asset Management with a Limited Power-of-Attorney. This authorization enables the purchase or sale of securities in your account. We maintain communication with clients on a regular basis. When the initial trades are made in your account(s) they will be discussed with you. When any tactical or rebalancing trades occur, you may prefer that we contact you beforehand. As part of the communication process, clients should notify Ridley Asset Management of their tax situation regarding realized or unrealized gains and losses to help minimize taxes.

What reports or statements will I receive?

Ridley Asset provides detailed performance reports quarterly. These reports detail account performance, asset allocation, securities positions, and provide commentary. Your account custodian furnishes monthly account statements, year-end tax reporting statement, and internet account access if desired.

Why is rebalancing the asset allocation important?

Rebalancing maintains a client's original investment strategy and risk profile. Allocating assets in multiple asset classes results in certain investments outperforming others over time. Annual rebalancing shifts exposure from over-valued assets to under-valued assets based on their market performance. This reinforces our buy low/sell high strategy.

Rebalancing should occur whenever a client needs to adjust their risk profile. Financial circumstances can change based on numerous factors including the timing of tuition bills, health care payments, date of retirement, sale/purchase of a major asset, or receipt of an inheritance.

O.K., I like what I've seen. What's the next step in finding out more about becoming a client of Ridley Asset Management?

It is helpful to start with a telephone or face-to-face conversation. This initial dialogue begins the process of understanding and analyzing your unique financial situation. Should we both agree to move forward, Ridley Asset Management will provide documents for establishing a business relationship -- investment advisor disclosure document (ADV II), Investment Management Agreement, and references. If necessary, we will provide the necessary documents to establish or transfer brokerage accounts.

Ridley Asset will manage the account opening and transfer process, as we review current portfolio securities, and continue the discussion of issues regarding your investments. With your agreement we propose a portfolio solution, and implement the recommended portfolio.

You now have a partner in your financial success. 

"The key to making money in stocks is not to get scared out of them."

~ Peter Lynch

FEE SCHEDULE

Ridley Asset Management is a fee-only investment advisor. Annual fees for advisory services are generally based on assets under management and are negotiable based on the size and nature of the
account(s).

Standard Investment Management Fee:

On all assets up to $1 million, the fee is .75%, and, on assets above $1 million, the fee is .50% (on an annual basis)

On all assets up to $1 million, the fee is 1.00%, and, on assets above $1 million, the fee is .50% (on an annual basis)