The Interview

What is the Fee Structure?

Servus Capital Management Interview

Being a fee based financial services firm, SCM charges a simple asset based fee. Though the broker dealer who holds custody of the assets may charge a fee for their services, SCM negotiates to lower that fee on behalf of our clients. SCM charges no minimum account fee, no annual fee, no inactivity fee, no low balance fee and receives no commissions from the buying and selling of investment vehicles, like stocks, bonds, mutual funds, etc.

Do you watch over the accounts on a regular basis?

Besides having a personalized plan, individuals want to make sure their assets are being monitored on a constant basis. We monitor the accounts, but more importantly we regularly monitor the investments in the accounts. As SCM monitors the economy, we are also working to determine if the investment vehicles SCM is using are still appropriate to help us reach our clients goals.

We realize a great deal of work goes into developing a plan to achieve the goals of our clients but we believe the most important aspect is the execution of the plan. We believe that performance is an outgrowth of good planning and exceptional service.

Servus Capital Management Interview

How do you manage portfolios?

Servus Capital Management uses a three pronged approach to manage our client’s portfolios:

  • Assess the economic environment
  • Determine asset class
  • Engage price overlay

SCM designs a portfolio according to the client’s goals, risk tolerance, comfort level and needs. Once these objectives are met, the investment vehicles are chosen.

An accurate assessment of the economic environment is important as it provides important information for SCM to decide the appropriate investment vehicles for the client. Once SCM determines the best asset classes and investments to use, a price overlay strategy is engaged to determine the appropriate entry point.

How often do you meet with your clients?

It’s up to you.

Our policy is very simple, determine a review process and then follow it. We allow the client to dictate meeting times, places and frequency as we believe availability is a large part of serving.

Does SCM provide value based portfolio management?

Servus Capital Management will design portfolios that will meet the needs of our clients from a planning standpoint but also from a conscience based approach. We respect that some clients may want a portfolio which takes into consideration their values. So we are prepared to help our clients with the design of portfolios that meet planning needs as well as their personal convictions.

Does SCM have an account minimum?

Servus Capital Management does not have an account minimum. We believe the money, regardless how much it is, is very important to the person who owns those resources and therefore it is important to us.

Does SCM have a minimum amount of production per account /household or per advisor?

Servus Capital Management does not have a minimum amount of revenue per account or household. We do not have a minimum amount of revenue per advisor. Currently I am the only production advisor and I do not have minimum amount of production from the clients we serve. When it comes to revenue it is simple, if there is not enough revenue, then we need more clients, not higher or more fees. We realize this is not what many broker dealers have a policy of doing, but we believe it is in the best interest of our clients to have goals of assets under management not revenue.