Why Dean Ryle

We are different from other investment managers

We believe in performance-linked fees, rather than fees based solely on assets under management. We are paid for outperformance.

Management Fees. Importantly, small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns.

 

Most investment managers charge fixed fees as a percent of assets under management. In 2017 most investors with $750,000 in investable assets paid between 1% and 1.25% in fixed fees.  So, the percent fee is the same whether your investment increases or decreases in value, or whether the manager outperforms or underperforms their benchmark. That is great for investment managers but not for clients. 

 

That’s why we believe in performance-linked fees. We charge Qualified Clients a small fixed fee of 0.21% per annum on assets under management if we perform at or below its benchmark, which is comparable to the cost to invest in passive US equity exchange-traded funds ("ETFs"). 

 

As outperformance is generated a performance-linked fee of 30% is charged if returns are in excess of the benchmark, typically the S&P 500 index. The total performance fee is capped at 2% of assets under management, where outperformance equals 6.67%.  Importantly, the fee calculation is subject to a high water mark.

We don’t think our clients should pay more than the price of passive large-cap ETFs unless they actually get more.

Alignment of interest is a critical aspect of our business model and culture.

Alignment of Interest. To mitigate conflicts of interest, or the appearance of a conflict of interest, alignment of interest is a critical aspect of our business model and culture. This is achieved through the following:

  • The Adviser’s members invest a material proportion of their net worth in Dean Ryle Asset Management, and associated Funds and/or an account managed by Dean Ryle Asset Management,

  • The Adviser’s investment team focuses all its time and energy on managing clients’ money, and

  • The Adviser’s investment team is incentivized according to investment performance, with staff encouraged to re-invest any discretionary bonuses into Dean Ryle managed Investments.

We view risk as not just market price volatility.

Risk. We view risk as not just market price volatility as many other Advisers do, but more a broader and deeper construct of risk, including the risk of losing money.  Volatility risk is too simplistic and not entirely relevant to longer-term superior investment returns.

 

We believe it is more profitable to use our own research, rather than third-party research.

Research. We do not rely on third-party research and conducts all company research in-house.  This means we at Dean Ryle understand what they are investing in, rather than being directed by third-parties that often have conflicts of interest.

We believe "value" and "growth" characteristics of individual companies can often co-exist.

​Value and Growth. We believe "value" and "growth" characteristics of individual companies can often co-exist in the equity market. This sets us apart from most other investment professionals who believe "value" and "growth" are mutually exclusive investment options.  Dean Ryle believes they can identify and make investments in quality companies that represent both growth and value opportunities simultaneously. 

We are incentivized to perform.

​Motivation. We are incentivized to perform. Most investment managers charge fixed fees as a percent of assets under management. The percent fee is the same whether your investment increases or decreases in value, or whether the manager outperforms or underperforms their benchmark.

 

That is great for asset managers but not for clients. This motivates many investment managers to focus on building assets under management rather than performing for their clients.  Dean Ryle believes in performance-linked fees.

 

We believe we best serve our clients as Fee-Only Advisers, to reduce conflicts of interest.

Unlike many advisors, we never accept sales charges or commissions of any kind; instead, our clients pay us a fee directly.

[1] Lanzetta, K. (2018). State of the RIA Market: Market Sizing & Practice Management Issue. Envestnet, p. 41 Used.
[2] SPIVA 2017 Year-End Scorecard, S&P Global, https://us.spindices.com/documents/spiva/spiva-us-year-end-2017.pdf?force_download=true.
[3] Duvall, James, and Morris 
Mitler. 2018. “Trends in the Expenses and Fees of Funds, 2017.” ICI Research Perspective 24, no. 3 (April). Available at www.ici.org/pdf/ per24-03.pdf. [Accessed 18 Oct. 2018].
[4] Duvall, James, and Morris 
Mitler. 2018. “Trends in the Expenses and Fees of Funds, 2017.” ICI Research Perspective 24, no. 3 (April). Available at www.ici.org/pdf/ per24-03.pdf. [Accessed 18 Oct. 2018].