How We Protect you

Our program is unique from a client safety standpoint in that all client assets we manage reside in the individual client's (or Trust's) very own Fidelity investment account protected and audited by that respected institution. Within this particular Fidelity account we are granted very limited rights (via the management agreement) to move these assets within an authorized group of mutual funds and certain ETFs as our interpretation of T Theory® dictates.

Beyond the rights granted by the management agreement, the Fidelity account funds are yours to do with as you wish and we have no other power. The account always stays in your name and you may access its dollar value at any time and its fund composition as determined by Fidelity on a daily basis. Your account data can be accessed online after proper web security precautions have been taken.

Fidelity will also provide you with their own monthly accounting statements and we will follow up with our own monthly summary report describing our plans and strategies for the future. Clients may cancel the management agreement at any time in writing. In this event, our limited influence, over the account would legally be terminated.

From the beginning, we have structured our business this way to protect you.  History tells us to expect fraud to crop up during speculative periods because it always has.  We felt this separation of authority allowing us to develop a unique investment strategy independent of custodial obligations was the far safer long term approach.  It is much like double entry accounting in which two independent sets of figures are compared over time with warning flags being raised whenever either concept see a discrepancy. This extra safety factor amounts to a small extra cost to the client. However, T Theory™ more than compensates for this insurance, as the record demonstrates.

As an added precaution, at the very the outset of our program in 1978 we insisted that our investments be confined to mutual funds, rather than stocks, as the diversification and strict accounting regulations required by funds greatly limit the most serious kind of fraud.  Further, mutual funds are purchased or sold only at the 4 pm ET close. This insures that all clients are treated fairly, buying or selling at the same price.  In recent years, we have added time-tested Exchange Traded Funds (ETFs) to the investment menu for the same diversification/anti-fraud reasons outlined above for mutual funds.