Frequently Asked Questions
What is a Registered Investment Adviser (RIA)?
An RIA is an advisor registered with the Securities and Exchange Commission (SEC) and/or State agency (Florida) who manages the investments of others. The company Newmarket Advisors Inc. is the Registered Investment Advisor. The person employed by the RIA is the Investment Advisor Representative. This registration doesn't mean that the person is recommended by the SEC, it simply means that they are regulated by the SEC or the State (Florida).
Registered Investment Advisers differ from commission-based stock brokers because they must adhere to the role of fiduciary indicated by the Federal Investment Advisers Act of 1940. Newmarket Advisors, Inc. is a fee only Registered Investment Adviser that accepts its fiduciary responsibilities.
What is a fee-only RIA?
A fee only RIA is one who is compensated solely by the client, with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial product or service. The RIA may not receive commissions, rebates, awards, finder's fees, bonuses or any form of compensation from others as a result of a client's transactions.
What is a Fiduciary?
A fiduciary is a person legally appointed and authorized to care for assets of another person. A fiduciary manages assets for the benefit of another person rather than for his or her own profit.
Newmarket Advisors, Inc. is an Independent Registered Investment Adviser (RIA) and it is held to a higher standard than stockbrokers when it comes to putting our clients' interest first. Independent RIA's have a fiduciary responsibility to clients which means we must:
- Act in the BEST interest of clients at all times
- Disclose conflicts of interest
- Adopt and administer a code of ethics
- Monitor for best execution of trades
- Protect your personal and financial information
How often will I hear from you?
Your account custodian, in most cases Fidelity Investments,Inc. will issue monthly account statements. In addition, our clients benefit from our open door policy, we are always available to meet with you or answer questions at your convenience. We meet quarterly with some clients, while others prefer semi-annual or annual meetings. We are flexible to your needs.
Can I view my account online?
Online access is available through the Fidelity Investment website. Our website provides a link to the Fidelity website.
What is a custodian?
A custodian is a brokerage institution such as Fidelity Investments, Inc. that holds clients' assets and provides asset protection through SIPC insurance. Newmarket Advisors, Inc. is not a custodian.
What do I get for your fees?
Newmarket Advisors, Inc. provides ongoing investment management through an asset allocation strategy that is tailored to accommodate your individual needs. Our educational background and years of experience facilitate the development and implementation of your account's asset allocation.
Specifically, the fee covers but is not limited to:
- Portfolio management
- Asset allocation management
- Performance reports and market commentaries
- Meetings and telephone updates
- Assistance with other financial matters
Our commitment is to manage assets prudently and to foster open communication to build long-term relationships. Most important, our clients know our goal and theirs is to add return, net of fees, with a focus on mitigating the downside potential or your investments as compared to the S&P 500 Index over a three to five year period.
What is the next step if I want to open an account with Newmarket Advisors, Inc.?
We would set up an initial meeting where we can sit down to determine if we can meet your investment needs. From there, we can advise you how to proceed.
What if I want to transfer my account from another investment firm?
In most cases we can complete the paperwork for you. We try to make this as simple as possible and work with you through the process. It is all part of our service.
Do you only work with mutual funds and equities? What if I am interested in bonds or fixed-income investments?
Yes, we use these investment products. Fixed-income investments, such as government securities, CD's, taxable bonds, and tax-free bonds, can be used in your asset allocation mix.
Can you guarantee my rate of return?
No!, Unless you are purchasing United States Government issued bonds or notes we can make no guarantee of return for any period of time.
Do you charge for an initial meeting?
We offer a free introductory meeting for prospective clients.
Do you have clients outside South Florida?
We have clients throughout all of Florida and the United States.
What should I bring to the initial meeting?
Here is a brief outline of what documents we might review at our first meetings:
Tax returns, retirement plans, 401K's, IRA's,403b's, insurances (home, auto, health, long term care, life), wills, trusts, assets (mutual funds, brokerage accounts, bank statements, etc.), liabilities, social security statements, home value and any other documents you think would be helpful.
Can clients keep their assets where they are and make the changes themselves?
No. Typically, clients do not facilitate changes to the portfolio quickly enough nor can we monitor the changes. Furthermore, it is impossible for us to report on a client portfolio without direct downloads from each custodian. Instead, we currently house virtually all of your securities accounts at Fidelity Investments, Inc.
Who will work with me?
All meetings are held directly with Steve Newman, President, Newmarket Advisors, Inc.
What are your fees?
A typical charge would be 1% to 1.2% annually of the total amount under management. Billing is quarterly, in advance. As an example, if you had $250,000 under management at the beginning of a calendar quarter, your quarterly fee would be $625.00 at 1% annually.
How often am I billed?
Our clients normally receive a statement during the first weeks of January, April, July and October.
What kind of assets do you invest in?
We invest in a variety of investments appropriate to your situation and risk tolerance including: stocks, bonds and mutual funds and exchange traded funds.
How often will you review an investment portfolio?
Generally, we review each portfolio on a continuing basis. If circumstances warrant, such as market irregularities or a specific client need surfaces, we will review portfolios immediately.
How often do we meet?
We meet with you as often as you like, typically every six months. In reality we talk via phone, e-mail or meet in person much more often.
Do you take possession of, or have access to my assets?
Newmarket Advisors, Inc. is deemed to have limited legal custody of client's accounts. For purposes of providing management services, client's give contractual permission for Newmarket Advisors, Inc. to access client's account via on-line access. This ability to have access to client's accounts causes Newmarket Advisors, Inc. to exercise limited custody over client's funds or securities. We do not have physical custody of client's funds and/or securities. Client's funds and securities will be held with a qualified custodian (i.e., Fidelity Investments).
Do you act as a general partner or participate in or receive compensation from investments you may recommend to me?
No!
Are you licensed?
Yes! Newmarket Advisors, Inc is licensed as a Registered Investment Advisor with the State of Florida Department of Financial Regulations.
Does a client have to stay with Newmarket Advisors service for any length of time?
Obviously, we would like every client to stay with our service forever. However, there is no obligation to do that. We disclose in our Investment Agreement that clients are allowed to terminate our services at any time. We only ask that you give us 30 days notice to process the appropriate paperwork.
