It was our goal to design this part of our site to be as informative as possible about the work we do and how we interact with our clients. We also know that there will be many more questions that are not addressed here and welcome you to contact us directly with your questions.
1) What does ‘fee-only' mean?
Fee-only financial advisors are compensated solely by the client and are therefore able to recommend solutions that best serve the client without the conflicts of interest that might come from commonly added incentives such as commissions, sales incentives, rebates or bonuses. Caledonia embraces the fee-only approach and further eschews so called "referral fees" where an advisor would otherwise receive a (sometimes substantial) fee for referring the client to an outside professional (such as an insurance agent).
2) What are your investment management fees?
Our fees for investment management are outlined in the table below.*
Annual Fee Assets Under Management
1.00% On the first $1 Million
.75% On the second $1 Million
.50% Over $2 Million
We recognize our fees are lower than many, if not most, independent financial advisors, however it has always been our desire to keep fees as low as possible, including additional pass through costs clients are often unaware of. We construct our portfolios carefully, looking at all underlying expenses in order to preserve as much return as possible for you.
* Comprehensive financial planning, if desired, is available at no additional cost, subject to a $500K USD minimum of assets under management. Caledonia otherwise generally charges $125 to $200 per hour for financial planning and/or consulting. Please see Caledonia’s Form ADV Part 2A (available upon request) for complete details.
3) Do I give up performance by adopting a strategy of Sustainable Investing.
This is a common question that we believe has now become an investment myth. Years ago, socially responsible investing (SRI) was seen to have a 'premium' associated with it where you would give up performance in return for doing 'the right thing'. This has completely changed over the last decade, with many research reports showing Sustainable Investments yielding equal if not superior results.
4) Is Sustainable Investing better than traditional investing?
In a nutshell, we like to think about it from the perspective of what makes a good company. The best companies in the world share many of the same characteristics, including strong corporate cultures, workplace diversity, strong management and leadership, positive environmental records, corporate responsibility programs and 'best in class' quality and excellence through their products or services. These elements lead allow these firms to be better investment opportunities compared to their peers across all industry, manufacturing and service sectors.
5) What if I want to only invest part of my assets in a certain way, say renewable energy?
We welcome it. Many of our clients have traditional investment allocations in their portfolios as they learn more about Sustainable Investing. We have the ability to create portfolios a la carte, where you can focus on certain areas that are important to you.
6) What separates Caledonia from other advisors who offer Sustainable Investing as an option?
Our primary focus as a firm is on Sustainable Investing. Some advisors are adding this element as a sidebar to their normal practice without truly understanding the space or having the knowledge and expertise. Our practice is based on this from the ground up, forming the basis for all of our investment decisions. It is important to be aware of other advisors who are simply 'greenwashing' in fear of missing out on the growing interest in this area.
7) Is Sustainable Investing just a fad?
It is our belief that in the next couple of decades the majority of smart investing will transition to this type of management. In the work we are doing with the United Nations (United Nations Environmental Programme – Finance Initiative, UNEP FI), we are already seeing this shift on a large corporate scale all over the world. UNEP FI has some of the largest financial institutions in the world as signatories to principles that will move us closer to a sustainable future for investing and finance. With such powerful backing, the possibilities to make fundamental change that will affect consumers at the public level are here to stay.
8) How do I learn more about Caledonia and Sustainable Investing?
Our process is designed to be educational and friendly in order for each of us to learn more about the other. We typically start off with a discovery meeting that allows us to share some background information and evaluate areas to focus on in any follow up meeting.
9) What do you charge for an initial meeting?
There is no fee for our initial meetings. There are no upfront costs in evaluating whether we are the right fit for each other. Our objective is for you to leave each meeting with something of value, even if that means our paths lead in different directions.
The ability to grow your wealth is more than just what happens inside your investment portfolio.
Growing your wealth over time is nothing if you cannot sustain it.
Protection comes in many forms and at several levels.