About Evanson Asset Management®
(Updated December 2024)

Business:
Evanson Asset Management®, L.L.C. (EAM) is a registered investment advisor with the Securities and Exchange Commission. It is a fee-only (non-commission) firm providing investment advisory and management services.  EAM  is based in Carmel, CA and also has advisors in California and Virginia. Our recommended account minimum is $500,000 although exceptions may be made. Dr. Evanson, founder and owner, has a research background and has been in the financial services business since 1988, assisted by a team which includes investment advisor representatives and administrative staff. EAM has offered passive and index management along with low fixed quarterly fees since 1995. An investment advisor disclosure document (ADV-II) and current client references are available upon request.  E.A.M. may be contacted at 831-333-2060 or  by e-mail at service@evansonasset.com.  

Investment Strategy:
EAM derives its investment strategy from Modern Portfolio Theory, MPT, and makes use of DFA's passive diversified asset class funds, Vanguard index funds, and ETF's as well as maturity laddered bond portfolios and other passive investment vehicles where appropriate. Passive and index investment management is the practical application of four decades of academic research on investment management and portfolio performance. Passive management offers many benefits including a sound empirical basis, very low cost, broad diversification, specified risk/return ratios, and few taxable events. Occasionally, active strategies may be employed with passive investment vehicles, like sector funds. Securities may be held in taxable accounts or tax-deferred accounts including IRA's, profit sharing plans, defined benefit plans, and annuities. 

Management Services:
Each client's investment portfolio is customized and designed to meet their particular investment needs. Factors such as age, years to retirement, income, taxes, risk tolerance, and total asset allocation are considered in the construction of an investment plan. Pre-existing positions and accounts not managed by EAM are included in the planning process. The planning process usually involves a written portfolio analysis and financial plan. If clients have preexisting portfolios, changes are made only if existing investments are in inappropriate asset classes, risk/return ratios are inappropriate, or internal operating costs are too high. Investment decisions are made jointly with clients before trades are placed unless they wish otherwise.  At the beginning of each quarter, four times per year, clients receive a written portfolio evaluation as well as a statistical analysis of their portfolio. 

Broker/Dealer Relationships:
Most client accounts are maintained at Charles Schwab or Fidelity.  EAM does not take custody of the assets and can only sweep fees from accounts, or disburse money from accounts, when authorized to do so by our clients.  Schwab and other brokerages provide the many investment related services investors may require including: monthly account statements, end of year tax statements, gain-loss reports and online account access.  EAM receives no reimbursement of any kind from any broker-dealers.

Although EAM may recommend that clients establish accounts at Schwab or Fidelity, it is the client's decision as to which of these firms to use as a broker/custodian.  The services of these broker/custodians are not contingent upon E.A.M. committing any specific amount of business in the form to total assets or trading/transaction fees to the firms.  The firms' brokerage services include the execution of securities transactions, custody, research, and access to mutual funds and other investments that are otherwise generally available only to institutional investors or would require a significantly higher minimum initial investment.  For EAM  client accounts maintained at these firms, the firms do not charge a separate management fee but are compensated by small transaction costs on any buys or sells in EAM client accounts.  Typical account transaction fees for EAM clients are a few hundred dollars per year.  The firms also make available other products and services which may benefit EAM and its clients.

Management Fees and Services:
EAM is a fee-only advisor and is compensated only by fixed quarterly retainer fees from our clients.  We have employed and promoted fixed quarterly retainer fees since 1995.  Typical fees range from $625 per quarter or $2500 per year to $2000 per quarter or $8000 per year, regardless of account size, and usually cover all of a nuclear family's accounts.  We manage some small  accounts for less and a few larger family accounts with multiple trusts and objectives for more.  Typical fees range from about 0.05% to 0.20% if calculated on assets under management though they are set and fixed. Services includes the construction of a customized investment allocations plan,  implementation and trade placement, quarterly reviews with both statistical analysis and a narrative commentary, and rebalancing and tax-loss harvesting, if indicated.  If very complicated incoming transfers are involved, a one-time additional set-up fee may be charged, though this is rare.  Our minimum account size is $500,000, although exceptions may be made. 

References:
Client references are available upon request.