Specialized. Distinctive Approach.
9 Ways We Are Different From Other Investment Managers
1. Highly specialized
We are highly specialized US equity investors focused on investment opportunities in the S&P 500 index.
When it comes to investing, most registered investment advisers (RIAs), planners, and wealth managers tend to be generalists. We believe that specializing in equity investing, doing detailed analytical work, sticking to a rigorous investment process, and focusing on the US equity market enhances investment performance for our clients.
2. Performance-linked fees
Small differences in both investment performance, or fees and costs can have a substantial impact on your long-term returns.
A 2020 survey found most investors with $250,000 to $1,000,000 in investable assets paid 1.00% p.a. (100 bps) on assets under management in fixed fees, and also that 81.4% of investors with $250,000 investable assets paid greater than 1.00% p.a. (100 bps) on assets under management in fixed fees. Source: Veres, B., “2020 Inside Information Fee Report”, 2020, p. 27, date accessed 12/01/2020.
The percent fee is the same whether your investment increases or decreases in value, or whether your manager outperforms or underperforms the benchmark. We believe there is a reduced incentive for traditional investment managers to seek outperformance in managing your funds, but rather their focus is on growing their AUM and not on performing for you.
You can read more about our fees, Fees and High Watermark.
3. High watermark to protect our clients
The high watermark is the highest return your account has achieved in comparison to the S&P 500 benchmark since the account was launched.
A performance fee is only charged when your account's accumulated total return in comparison to the benchmark reaches a new high. When this happens, the high watermark is reset at this level.
High watermarking keeps track of accumulated losses, based on the relative performance of our client’s account versus the broad market index, S&P 500, from prior periods. We cannot charge a performance fee if accumulated losses exist.
4. Focused on results, not growing assets under management
We look at investments with unshakeable standards, and we call it as we see it. Investment management is an industry that has too many active managers managing too much money. Fixed fees have long incentivized managers to grow assets under management rather than pursue outperformance. We focus on results.
5. Alignment of interest
We actively reduce our conflict of interest in the following ways:
the owners invest a material proportion of their net worth in Dean Ryle Asset Management, and associated funds, or in accounts managed by Dean Ryle,
the investment team focuses all its time and energy on managing clients’ money, and
the investment team is incentivized according to investment performance.
6. Multiple risk factors not just market price volatility
Volatility risk is too simplistic and not entirely relevant to longer-term superior investment returns.
7. Making the right investment decisions means using in-house research
We do not rely on third-party equities research and prefer to conduct all investment research in-house. The benefits of this are that we better understand what we are investing in, rather than relying on broadly distributed equities research sold by third-party investment research houses or investment banks.
8. Value and growth can co-exist
The idea is that we seek out companies that exhibit both value and growth characteristics sets us apart from most other investment professionals. These are not mutually exclusive investment options.
9. Fee-Only Advisers
We never accept sales charges or commissions of any kind from any other institutions. Instead, we are compensated by fees paid to us directly, these are fully transparent
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