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How does the primary relationship between me and my clients change?
You will remain the primary contact for the ongoing management of your clients' investments.
How is Altius Select Investment Portfolios similar to the Nationwide program?
The Altius program will remain invested in mutual funds for their professional management, liquidity and diversified attributes. An institutional-caliber investment consultant will still play a crucial role in the management of the program.
What is the new program called?
The new program name is Altius Select Investment Portfolios. Altius is Latin for higher and speaks to our desire to help elevate the investing world through innovative, sustainable solutions.
Who is responsible for Altius?
Bellatore Financial, Inc. will sponsor the program and perform oversight of the sub-advisors.
Who is Bellatore?
Bellatore Financial, Inc. is a division of Bellatore, LLC, a financial services company that delivers core investment management solutions, back office technology and client service to established advisory businesses. Bellatore Financial, Inc. is the firm's Registered Investment Advisor (RIA).
Why did Nationwide select Bellatore?
Bellatore shares a similar focus on portfolio construction and has nearly duplicated the mutual fund portfolio program, allowing for in-kind transfers. Nationwide also selected Bellatore because of the quality of Bellatore's Investment Committee, the experience of our team, and our focus on advisor solutions and relationships.
Which custodian will be working with Altius?
Schwab Institutional will act as custodian.
Who is responsible for portfolio construction?
Ibbotson Associates, Inc. will be the stewards of portfolio construction and will continue to monitor the portfolios annually.
Who will be selecting the investments?
As part of the Altius Select Investment Portfolios, the Ibbotson Associates, Inc. role expands into the area of investment selection. Ibbotson will now oversee both the portfolio construction and the investment selection process. Ibbotson Associates has a long history of coordinating investment decisions and performs these services for more than $54 billion in assets.
Who is a part of the investment committee?
Bellatore Financial's esteemed Investment Committee will review investments and portfolio structure. It includes Nobel Laureate Dr. Harry Markowitz, Behavioral Finance expert Dr. Meir Statman and risk management expert Dr. Sanjiv Das.
Will there be any changes to the investments?
Initially, Altius Select Investment Portfolios will strive to maintain the fund specific models currently used in the Nationwide model portfolios. This helps maintain the existing investment experience while also avoiding adverse tax impacts. There may be changes to a small portion of the investments due to purchase constraints or share class issues.
Will there be a change in the program cost?
Altius Select Investment Portfolios' program cost and fee structure will remain the same as Nationwide's program. The 95 bps gross fee reduced to 45 bps net fee (top tier) will continue from a positioning standpoint. Fees will be charged quarterly.
How will the fees be charged for incoming transfers into the new Altius Select Investment Porfoltios account?
Bellatore's standard billing policy prescribes that fees be calculated and billed on a pro-rata basis as of the date that any cash and/or securities are received into the account (as long as the total fee calculated is a minimum of $20). However, to accommodate the potentially lengthy transfer time from PFPC to Schwab, an exception has been made to allow for a 30 day "grace period" for transfers to be completed. New Altius accounts funded by the "in kind" transfer of securities from PFPC will only be billed once all of the expected securities have been received UNLESS the account is not fully funded within 30 days of the initiation of the transfer. If, after the 30 day "grace period" all securities have not been received, a pro-rata calculation representing the current market value of the account will be billed. In addition, once the account has been fully funded, a final pro-rata calculation will be processed on the remaining assets that have been received. All accounts opened after January 1, 2009 will be processed as per Bellatore's standard billing process.