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The SCM Mission
- To be your first choice for personal investment advice and successful wealth management.
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Satyen Chatterjee
Founder & President
Satyen Chatterjee comes with an academic background in Engineering and Business Administration. His first fourteen years in engineering management was further solidified with six years of teaching experience at the School of Business Administration, University of Washington, Seattle. At UW, he was associated with the teaching of several undergraduate, MBA and Executive MBA courses. Since 1992, as the founder, Satyen Chatterjee has been working as the team leader at Strategic Capital Management, Inc.
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Why not buy mutual funds myself?
Mutual funds are a fine option for smaller investors. However,
for high-net-worth individuals, we are certain mutual funds are counter
productive. Here's why ..
It is observed that most high-net-worth individuals who invest
in mutual funds own between 5 and 7 funds. Based on our research of Morningstar
data, we know that each fund owns an average in excess of 150 stocks per
fund. So when you own 5 or 7 mutual funds, what you really own is a complex
index with 750 and 1050 stocks - in some unknown weighting - with duplications
of many stocks.
With this complexity, one fund manager may be buying a particular
stock while another is selling. Thus your assets in the funds may end up
double paying in commissions. You can't talk to the people who are making
your investment decisions. To them you are simply an account number on
a spreadsheet.
Even more frustrating is the fact that you really can't tell
what you are paying - but it's probably too much - over 2% on average.
You'll have to look for them in their prospectus.
For high-net-worth investors, mutual funds are a completely
unmanageable investment plan. You can do much better.
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Do I need a portfolio manager?
Incidentally, with the advent of the internet, there's plenty
of free information. Only you can decide if you are comfortable managing
your own assets. We have found that most of our potential clients who self-manage
their assets do so simply because they haven't found anyone competent whom
they can trust.
Most people who manage their own money don't understand the
methods the professional investors use to evaluate invetment's risk or
performance. Even investors who have been self-managing their assets for
decades would be well served to seek out the help of a knowledgeable and
experienced money manager.
Our world is one of ever increasing specialization. Our clients
are experts in their own field and prefer to turn their assets over to
someone who specializes in managing money. By spending less time on their
investments, our clients tend to have more time for family, friends and
leisure as well as more time to use their unique skills to their advantage.
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Do I have to disclose my personal information to the Investment Adviser?
Not necessarily. You can directly open an account with a
brokerage house, who remains the custodian of the account. With your limited
power of attorney, we just get the discretionary power to trade in your
account. All your personal information remains with the custodian. However,
to design a suitable portfolio for you, we need to know some of your financial
situations and your objectives. We need to get a feel of it. If you so
desire, you may give specific instructions regarding your investment objectives
in the client profile questionnaire. We respect your privacy.
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Where do you place the importance of an existing personal relationship
with a potential client?
Our experience is very clear. Having a good personal
relationship has never been a sufficient reason for getting or maintaining
an account. It all starts with a professional relationship built on providing
quality service that meets and then exceeds expectations. Both sides are
to be clear about this right from the beginning.
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Where do you place the importance of customer loyalty in your cost structure?
We do understand it costs much more time and attention to
attract a new customer than to keep a loyal one. We also believe that our
services are not suitable for all.
There is much more in client loyalty than simply avoiding
dissatisfaction. Satisfied clients are not necessarily loyal. Satisfaction,
we believe, is an attitude and a temporary feeling. Loyalty is a repeated
behavior. A loyal client is the result of an ongoing, highly valued professional
relationship. We make you an integral part of the process. We work hard
to turn a new client into a loyal one. It's a win-win situation.
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Do I have access to my account?
Yes -- Remember, your primary relationship is with your custodian,
the brokerage house. You can access all the information about your account
directly from them.
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Can I trade in my account?
Technically yes. But we expect that you won't exercise this
option. Remember, you have hired us for that.
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