Does AFM invest its clients in mutual funds?
A. Generally we do not, though there are occasional exceptions. The reason that we do not is very simple: we think it’s unfair to our clients. In a mutual fund, you are paying a management fee to the fund manager out of the money invested. If we invested you in mutual funds, you’d also have to pay us a management fee. We think this doubling up of fees is very unfair to the client. Instead we build a ‘custom mutual fund’ of individual stocks and bonds for our clients. That way, you only pay one low management fee.