We ask that clients complete our standard portfolio contract before opening the brokerage account. A client is free to cancel the management contract at any time on written notice and will receive a pro rata refund of the prepaid management fee.
What about Joint Account Contracts?
Joint account contracts must be signed by all participants.
How Are Accounts Opened?
Once we receive a signed contract from a new client, we notify the brokerage firm which, in turn, sends you the necessary documents for opening the brokerage accounts. Accounts may be opened with cash or securities. However, we reserve the right to reject any or all securities if we feel they do not meet our criteria for growth. We provide Comprehensive Investment Management Services to Individuals as well as Corporate Pension and Profit Sharing Plans.
How are the securities registered?
Normally securities are held in street name by the brokerage firm because it is more convenient for collecting dividends and interest. This also relieves the client of concern about stock certificates resulting from stock splits and/or stock dividends. MDH Investment Management, Inc. does not have custody of any cash or securities for any client. Accounts are also held at bank trust departments but the client is responsible for the attendant custodial fees. Every account is insured by both the brokerage and bank trust department.
How Are Funds Invested?
Managed portfolios are invested in a broad spectrum of common stocks as well as fixed income vehicles when so warranted. Normally we do not invest more than 5% of the funds under management in any one position. Many investment advisory firms invest in substantially fewer stocks. This requires considerably less effort while exposing a client to excessive risk. In our opinion, portfolio diversification not only reduces risk but also increases the likelihood of latching on to a real winner. We buy more of a single stock on the way up and rarely average down.
What Happens to Cash in the Account?
Cash in the account is held in a money market fund. Your initial investment check is deposited into this same money market fund. These funds therefore draw interest on a daily basis. We are permitted to withdraw or add funds at any time without brokerage commissions in our money market fund.
What is the minimum investment and annual management fees?
