FAQ
What is the minimum for investing with NECM?
$50,000
Who are your typical investors?
We currently manage money for individuals, families, charitable foundations, donor advised funds, family trusts, and retirement plans.
I already have investment accounts at large brokerage firms and large money managers. Why would I move assets to NECM?
- Returns: NECM’s flagship Global Growth Fund has averaged 15.74% annually for the last 21 years since inception to 12/31/23 versus 10.49% over the same time period for the S&P 500.
- Lower trading costs and fees: NECM uses discount online trading accounts to manage the assets which often saves investors over 90% on trading commissions. NECM does not charge sales loads, redemption fees, or 12b-1 fees.
- Diversification: Successful investing over the long term involves diversifying assets to reduce risk and to gain access to outperforming investments. Different investment managers perform well and poorly in different markets. If you have assets with an investment manager who has consistently underperformed market averages and charges high fees, then maybe it is time for a move. The more assets you have, the more diversified you can be.
- Experience: Our portfolio manager has over 20 years of experience investing in stocks and professional work experience at both mutual funds and hedge funds.
Why the name New Economy Capital?
We realize that the economy is not static, but is changing over time. Dominant companies and industries today may not be dominant in future years. We strive to identify these changes and keep our portfolios positioned in the new economy.
I recently received a large sum of money, and I am trying to decide how to allocate it between different investment choices. Can you advise me on a comprehensive investment strategy?
Yes, we do offer free initial consultations to help define a potential client’s financial goals and there is no obligation with the initial meeting.
Do you focus on a specific industry, or are your portfolios diversified?
We use a bottom up approach to investing, meaning that we first focus on finding individual companies in any industry which we feel will outperform the overall stock market. We run comprehensive stock screens across all industries, and as a result our portfolios are diversified among many different industries.
Are there any limits on the minimum and maximum market capitalization for the companies in which you invest?
No, we are a multi-cap manager, and we will consider investing in any publicly traded company regardless of market capitalization. We currently own small-caps, mid-caps, and large-caps.
Does NECM invest in foreign stocks?
Yes, we do invest in some select shares of companies domiciled outside the U.S. by investing in ADRs. ADRs, or American Depository Receipts, are NYSE listed shares which trade in US dollars. Their price movements are based on the underlying foreign stock which trades on a foreign stock exchange in the local currency.
What is a 12b-1 fee, and does NECM have a 12b-1 fee?
A 12b-1 fee is a marketing fee charged by mutual funds to compensate brokers for recommending their funds over other funds that don’t pay 12b-1 fees. The major problem with 12b-1 fees is that ultimately the individual investor is hurt because he or she receives biased investment advice from brokers that are motivated by the extra hidden fees. No, NECM does not have any hidden 12b-1 fees.
Is NECM an independent investment manager or does it have financial obligations to outside banks and brokerages which might influence its investment decisions?
NECM is independent and no banks or brokerages have any influence on its investment decisions for clients. We feel this is the only way to keep our clients’ interests the top priority in our investment decisions.
Can NECM construct a custom portfolio for my specific goals?
If you feel a customized portfolio would better suit your financial goals, please contact us directly to discuss the details of your investment goals. In some situations it does make sense to construct a custom portfolio, and we do currently manage custom portfolios.
Why would I want to move money out of my checking account or savings account and into the stock market? I am currently earning interest with very little risk.
With increased risk comes the opportunity for increased rewards. It is true that checking or savings accounts will guarantee small returns, but over the long-term the opportunity cost can be significant. NECM’s investing graph illustrates how an initial $50,000 investment grows over a 25-year time horizon earning 4%, 8%, 12%, and 16% per year. As you can see from the graph, the rewards for taking on more risk and earning a higher rate of return per year are highly significant.
How can I become one of NECM’s clients?
Fill out the form on the “Becoming a Client” page of this website. We will then contact you to discuss the specifics that apply to your situation. Or, feel free to give us a call.
