Bason Asset Management acknowledges two major problems facing the investment management industry today. The first is that passive (or “index”) investing is a superior strategy to traditional active management, yet the industry continues to sell actively managed products to clients. Passive management minimizes the intermediary costs of investing and delivers investors their share of the returns of the capital markets. For more about Bason’s passive investment philosophy, including the logic, research and results behind passive management, please click here.
The second problem is that the powerful economies of scale that ought to be reserved for investors putting their capital at risk is instead delivered to investment advisors and mutual fund companies in the form of unconscionable profit margins via asset-based management fees. Often referred to as Assets Under Management (AUM) or “fee-based” financial advice, this fee structure not only asks high net worth investors to overpay for services rendered, but also creates an often-unspoken conflict of interest. Bason Asset Management operates on a flat annual retainer fee. For more about our fee structure, please click here.