Frequently Asked Questions
What does a portfolio review include?
At FMD Capital Management we analyze every new client’s portfolio individually. We study the current asset allocation, discuss your goals, and then formulate a detailed game plan for every single position. We take the time to listen to your needs and tailor our strategies to your objectives. With any available cash, we overlay the opportunities that are most attractive from the positions we own for our existing clients. This way, highly appreciated positions with less than ideal risk-to-reward characteristics are left aside, and only the opportunities that will complement the current asset mix are recommended. In addition, we talk about how we would implement risk management strategies on your portfolio moving forward.
What type of communication do we receive as a client?
At our firm, communication with clients is a top priority. That is why we offer annual portfolio reviews, quarterly update calls from our executive team, and an exclusive client memo that is mailed to you each month. In addition, we regularly send all of our clients performance reports so that you can review the progress of your account and we email you any time we make a change to our portfolio allocations.
You should never feel like you are out of touch with our strategy or your account, but in the event that you do, please don’t hesitate to call our offices directly and speak with a principal of the firm. We make ourselves available to you to answer any questions. Our phone number is (888) 823-8111.
What is a closed-end fund?
A closed-end fund (CEF) is similar to an ETF in that it is a basket of underlying securities that is traded throughout the day. However, most of the similarities end there. CEFs are created by an initial public offering that raises money to seed the fund and is then actively managed according to the constraints of the prospectus. Unlike ETFs, which create and redeem shares throughout the day, CEFs have a fixed number of shares and can therefore trade at a premium or discount to the fund’s net asset value.
The benefit of a CEF is that the fund manager is able to actively select and hold investments according to their research and analysis expertise. Because the number of shares is fixed, they do not have to sell distressed holdings at inopportune times to satisfy redemption’s. In addition, CEFs are able to use leverage and unconventional strategies, such as options, to enhance their returns over time. They are also able to diversify their portfolios in ways that many passive index-based ETFs are unable to replicate. To learn more about these innovative products, check out our Dynamic CEF Income Portfolio.
Can I watch what FMD is doing with my money?
When your accounts are at Fidelity, they are in your name with direct access to your account at all times. The accounts can be monitored 24/7 at www.fidelity.com. In addition, you will receive monthly independent account statements from Fidelity that show you the positions in your account and any transactions.
Can I work with FMD if I live out of state?
Yes! We have clients spread out all over the country, with the majority located outside of California. We overcome this small obstacle by adhering to a strict communication plan, thereby keeping our clients informed of exactly what is happening with their accounts or any changes to our strategies. Every client also has the ability to log in to Fidelity.com at any time for an up-to-the-minute view of their account value and holdings.
If I need to make a change to my account, do I contact you or Fidelity?
FMD Capital Management is your primary point of contact for all account service needs. We pride ourselves on providing world class customer service to our clients and keeping them up to speed on their portfolios. You can call our offices any time Monday through Friday between the hours of 8 a.m. and 4 p.m. Pacific Time. Our phone number is (888) 823-8111.
Many account functions are also available online at www.fidelity.com or by calling Fidelity directly at (800) 544-6666.
Can I trade on my account?
When you are a client of FMD Capital Management we restrict the ability for you to place an online trade on your account. This is because we don’t want you and our traders using the same cash on the same day to buy or sell a position. Instead, we encourage you to call our offices if you wish to place a trade for a specific security. We would be happy to advise you on a particular strategy and implement these trades on your behalf at no extra charge.
How do I add money to my account?
There are several ways that you can add money to an account that we manage. You can either send a check, or complete a wire transfer of funds directly to Fidelity. Make sure that you make the check payable to the name of the account, or Fidelity Investments, and write your account number on the check.
You also can send a check to our offices and we will forward it on to Fidelity on your behalf. DO NOT make the check payable to FMD Capital Management unless you are paying management fees.
If you are making an IRA contribution, make sure that you note the year that the contribution is for.
How do I access my capital if I need to make a distribution or withdrawal?
There are two methods of accessing cash in your account: 1) If there is cash available in the account then you can request a check or wire transfer directly through your online login at www.fidelity.com. 2) If you need to free up cash by selling securities, then please call our offices at (888) 823-8111 and we can make those adjustments for your account and send you a form to distribute the amount of funds you require.
Keep in mind that if we need to sell positions, there is a three day settlement period for all securities transactions in the account before the cash is made available for distribution.
How do I change my investment objective?
We will review your investment objectives on an annual basis to make sure that your assets are properly positioned to meet your risk tolerance and goals. In some circumstances, clients may want to switch from a more aggressive to a more conservative portfolio (or vice versa).
If this is the case, we encourage you to call our offices to review your objectives and determine if another portfolio may be better suited to your needs. We will then send you a Change of Investment Objectives form that will need to be signed and returned to our offices to before we make any changes.
Remember that it is up to you to inform us in writing of any changes to your investment objective.