Investment Management
Investment Management is the decision-making and planning process behind making financial investments and includes goal setting, researching investment options, developing investment strategies, and managing risk.
At 5280 Associates, we’re firm believers that utilizing in-depth research and data is critical to deciding how and where to invest. Our experienced financial advisors are specifically trained in creating, implementing, monitoring, and communicating quantitative investment strategies using custom asset management and real, up to date financial data. We manage a variety of diversified portfolios and have a wide range of investment options for any situation or risk tolerance.
Whatever your investment needs are, we can take the burden of decision-making and ongoing management off of your shoulders.
5280 Associates Investment Management
At 5280 Associates we have a wide range of investment models to meet any specific need or risk tolerance. We have four primary areas of our investment management program: diversified quantitative asset management portfolios, separately managed accounts, and interest management accounts. Regardless of your investment needs, we have a solution for you in one or more of our account offerings.
Quantitative Asset Management
Quantitative asset management is the process of taking large amounts of financial data, quantifying it into actionable indicators, and using those indicators to make emotion free investment decisions. At 5280 Associates, we use proprietary algorithms to quantify financial data and manage our clients’ money according to a strict due diligence process.
See bedrock fee structure below.
Separately Managed Accounts
SMAs are accounts that are managed by external money managers who specialize in specific types of portfolios. Whether you’re looking for the best blue chip, dividend paying stocks, or a growth portfolio that is attempting to beat benchmarks, 5280 Associates has access to professional money managers to meet any need.
See elevation fee structure below.
Interest Managed Accounts
5280 Associates has an interest management program in which we invest in money market funds and bank CDs in order to generate interest on relatively conservative assets. Each account is customized to the client based on how much money they would like to have available in money market funds versus how much they would like to store away in longer-term CDs.
See highland fee structure below.
Alternative Investments
Alternative investments are assets that lie outside traditional categories like stocks, bonds, and cash. They offer distinct opportunities for portfolio diversification, enhanced return potential, inflation protection, and income generation — often through exposure to markets that are less correlated to public equities. At 5280 Associates, we provide qualified investors with access to a curated selection of alternative investment strategies through our strategic partnership with iCapital. Our core alternative offerings include: Private Credit, Private Equity, Real Assets, and Hedge Funds.
See elevation fee structure below.
Process
When our clients come to us for investment management services, we’ll coordinate a time to meet and get the ball rolling. These meetings typically take anywhere between one to two hours and are comprised of four simple steps.
Gather Data
During this stage, we’ll gather all pertinent financial information needed for the investment management process.
Develop Solution
We consider your financial situation and determine what type of investment strategy is appropriate.
Implement Solution
Our team will put your custom investment management plan into action, assisting with opening accounts and processing transfers.
Review
We will conduct an annual account review and shift our investment management strategy as necessary to continue meeting your investment goals.
PRICING
5280 Associates offers a number of options available to you depending on your individual situation. To manage your investments, 5280 Associates charges a percentage of the assets under its care. As your account balance grows, the percentage you pay decreases. Your fee covers advice on account selection based on your risk tolerance, establishing the account, ongoing management, and review meetings. For new clients not enrolled in our Financial Planning Program, the minimum investment amount is $1 million per household. There is not an assets under management minimum for Financial Planning clients.
| BEDROCK Foundational Portfolios |
ELEVATION Specialty Portfolios (Additional manager fee applies) |
HIGHLAND Interest Rate Portfolios |
SAMARITAN Charitable Planning Accounts |
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| Managed allocations of low cost, diversified funds from multiple companies | Money manager portfolios with specialty objectives | Interest rate management accounts | Donor Advised Funds | |||||
| WRAP* | NON-WRAP* | WRAP* | NON-WRAP* | NON-WRAP* | NON-WRAP* | |||
| < $250,000 | 1.20% | 1.15% | 1.55% | 1.50% | 0.50% | 0.90% | ||
| $250,000 | 1.00% | 0.95% | 1.35% | 1.30% | 0.50% | 0.90% | ||
| $500,000 | 0.95% | 0.90% | 1.25% | 1.20% | 0.50% | 0.90% | ||
| $1,000,000 | 0.85% | 0.80% | 1.10% | 1.05% | 0.50% | 0.80% | ||
| $3,000,000 | 0.75% | 0.70% | 1.00% | 0.95% | 0.50% | 0.70% | ||
| $5,000,000 | 0.70% | 0.65% | 0.85% | 0.80% | 0.50% | 0.65% | ||
| $10,000,000 + | 0.65% | 0.60% | 0.60% | 0.55% | 0.50% | 0.60% | ||
*In a wrap account, you pay a single fee that covers both investment management advice provided and the execution of transactions by our custodian. In a non-wrap account, you will pay for our investment advice separately from the cost of individual transactions paid to our custodian.
Frequently Asked Questions About Investment Management
Investment Strategy and Philosophy
What is Quantitative Asset Management, and how could it benefit my portfolio?
Quantitative Asset Management is the process of using in-depth research and data to implement investment strategies. At 5280 Associates, we use proprietary algorithms to quantify financial data and guide investment decisions. This data-driven approach removes emotion from the decision-making process, allowing us to manage your money according to a strict due diligence process that aligns with your specific risk tolerance.
How does 5280 Associates determine my investment strategy?
Our strategy is customized through a disciplined four-step process. We begin by gathering all necessary financial data, including your full risk tolerance and liquidity needs. We then develop a solution tailored to your financial situation and implement the plan. Finally, we conduct an annual account review to adjust the strategy as necessary, helping ensure that it continues to meet your long-term investment goals.
Portfolio Offerings and Assets
Do you use traditional investments, or do you offer alternative assets?
We offer a wide range of investment models to help meet any specific need. We utilize both traditional and alternative assets to support comprehensive diversification.
- BEDROCK Portfolios: These are our Foundational Portfolios that use managed allocations of low-cost, diversified funds.
- ELEVATION Portfolios: These are our Specialty Portfolios that provide access to Alternative Investments (such as Private Credit, Private Equity, and Hedge Funds) through our strategic partnership with iCapital. These options offer distinct opportunities for portfolio diversification, but may carry higher risk.
Why do you use both in-house quantitative strategies and external money managers?
We utilize both in-house quantitative strategies and external managers for comprehensive coverage. We use Separately Managed Accounts (SMAs) as part of our ELEVATION portfolios. These are accounts managed by external money managers who specialize in specific portfolio types (like blue-chip dividend stocks), complementing our own internal data-driven strategies.
Our Service and Fee Structure
How does your tiered AUM fee structure work, and what is the minimum investment?
We bill using a percentage of assets under care, but that percentage decreases as your account balance grows. This tiered fee structure is transparent and is published clearly. For new clients seeking only Investment Management, the investment minimum is $1 million per household.
How do Investment Management and Financial Planning services function at 5280 Associates?
Investment Management and high-net-worth Financial Planning are two distinct services that we offer to our clients.
- Financial Planning: This is our foundational, flat-fee service, establishing a comprehensive roadmap for your financial life. It involves analyzing your current state, defining your goals, and providing specific written recommendations across topics like retirement, tax, and estate analysis.
- Investment Management: This service involves the active management of your portfolio assets, utilizing in-depth research and quantitative strategies (such as Quantitative Asset Management or Separately Managed Accounts) to align your holdings with your overall financial objectives.
While you can engage us for either service separately, we find that having a thorough financial plan is the critical starting point for all wealth management.
What is the difference between a Wrap and a Non-Wrap investment account?
The difference lies in how trading costs are covered. In a Wrap account, you pay a single fee that covers both our investment management advice and the transaction costs from the custodian. In a Non-Wrap account, you pay our management fee separately, and you pay the custodian for individual transactions as they occur. We guide you in selecting the option that offers the most cost-effective structure for your specific trading frequency.
Do you use external money managers for any of your portfolios?
Yes, we utilize Separately Managed Accounts (SMAs) as part of our ELEVATION portfolios. These are accounts managed by external money managers who specialize in specific types of portfolios. This gives our clients access to specialized expertise in areas like blue-chip dividend stocks or high-growth portfolios, complementing our in-house quantitative strategies.