PWL Capital Review, My Take on the Fama French Hedge Fund Method of Managing Money
If you’ve heard of Ben Felix, than you’ve likely also heard of PWL Capital, one of the most popular index fund portfolio management services that takes only a very small fee for putting their clients into index funds and diversifying them properly among global funds. Make no mistake about it, they are a still a business, and as someone who is more of a low fee shopper than a higher gains promises shopper of index funds, their fees are maybe just a tad too high for me. At between 50 and 75 basis points per year, or $10,000 to $12,000 per year on a flat fee if you have more than $1 million, if you have a large amount of money, in the range of $1 to $10 million, then you can get some seriously low fees on your portfolios here, sometimes as low as 10 to 12 basis points. Even with this being the case, their business model is very similar to the Fama French managed portfolio Dimensional Fund Advisors, and these fees could likely be cut in half by doing something like investing in low cost index funds in Vanguard, where you’ll pay just six basis points. In any case, they are a very good company, and after watching enough Ben Felix videos, I can tell you that they have some very sharp portfolio managers over there. In this blog post, we’ll look at my very own PWL Capital review, and will walk you through when you should and should not use them for your investing. For more information on PWL Capital, Index Fund investing and all things finance, be sure to subscribe to our blog for more details and information, and comment down below with your thoughts and opinions, and we’ll get back to you within one business day with a response.
Other popular firms that compete with PWL Capital on their fees and business models include:
Berkshire Hathaway
Dimensional Fund Advisors
Bridgewater Capital
PWL Capital
Vanguard Investments
Fidelity Investments
The Medallion Fund
Rebalance
UBS
Morgan Stanley
Merrill Lynch
And a host of other similar and related investment companies, subscribe for more information.
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My Formal PWL Capital Review, Things I Like, and Things I Don’t Like
Of the things I like about PWL Capital, I can say that I really like their money management style, and that I generally like their fee structure. While most funds, such as mutual funds, have 12B-1 Fees, front end load and back end load sales charges, where you are billed when you buy, billed annually, and billed when you sell, PWL Capital has a fixed dollar amount annual billing on your money, which means that if you have a lot of money, you pay a lot less in fees, just like the way its always been with everything in life. Have $1,000,00.00? Pay $12,000 per year, or about 1.2% in fees. Have $10 million dollars with the firm? $12,000 per year for 12 basis points on your money. Have $100,000,000.00, which I mean really who the heck has $100,000,000….like 10,000 people on the whole plane that’s who, pay just $10,000 in fees on your money, for a basis point structure of a wapping 1.2 basis points on your money. If you can hit the billion dollar mark or the deca billionaire mark by some miracle, and decide to put it all with this firm, you’ll essentially be getting FREE index funds by the firm, in that you’ll have just .12 basis points, or .012 basis points on your money, for a .00012% fee on your money, not too shabby to be keeping 99.99988% of your returns, not too shabby at all.
What I also really like about PWL Capital, is their sole reliance on index funds within their portfolio, and the way in which they only invest in index funds, some with home country bias, like US or Canadian based index funds like the S and P 500 or the CRSP-110, or globally diversified index funds. Overall, a really great company to invest your money with, and I would pick them to invest a portion of my capital with if I had the choice.
Why I Would Put a Portion of My Money Into PWL Capital, Just Not All of It
If I had $10 million, which at this point in time I don’t, but hope to have some day, then I would probably put about 20% of my available capital into the available globally diversified index funds at PWL Capital. or perhaps 30%. The reason for this, is I would likely sink the rest into Vanguard and the remaining into cash from there, in that I would like to have an emergency fund safety net, would like to have all my eggs in more than one basket in case of the off chance that a bank goes under or becomes a Bernie Madoff Ponzi scheme. That’s all for today’s post, if you enjoyed the article, subscribe for daily blog post updates, or comment down below with your thoughts and opinions on the article, and we’ll get back to you within one business day with a response.
Cheers!
*Inflation Hedging.com
Sources:
https://money.cnn.com/data/markets/
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