Q: What is the Minuteman platform?

The Minuteman is a secure, internet based software platform used by an advisor for managing their client's portfolio risk, through asset allocation. Minuteman uses the patent-pending FLEXbalance™ system for risk monitoring. An advisor's "model" portfolios are monitored minute by minute, and if any asset class has moved outside a preset tolerance, a rebalance is immediately executed in each individual account pegged to that model.

The complete Minuteman platform includes comprehensive analysis and modeling software, presentation materials, a risk tolerance questionnaire, template investment policy statements, and a custom web page where an advisor and their clients can view daily values and performance reports.

Minuteman software can be used for qualified as well as non-qualified investment accounts and we even provide a special platform for 401(k) plan participants.

You must be a Registered Investment Advisor (RIA) with client authorization for discretionary trading in their account, to use Minuteman.

Q: How does the Minuteman software work?

A widely-known study published in 1995 by Brinson, Hood, and Beebower found that the greatest determining factor to portfolio performance was not superior stock selection or market timing, but its asset allocation.

Minuteman uses patent-pending FLEXbalance™ rebalancing to maintain portfolio asset allocation at all times. This proprietary system monitors your model portfolios minute-by-minute against real time market data and if any asset class moves an amount you've set above or below its target asset allocation percentage, it automatically executes all needed trades in each individual account to bring them back into balance.

However, this active monitoring doesn't translate into excessive trade activity. For example, a 1% change in an individual asset class actually requires a 10% change in the market price of the underlying ETF. In addition, Minuteman will only execute one portfolio rebalance activity per day. Best of all, with its $1 per ETF trade cost, rebalancing is efficient.

Q: Is Minuteman an Investment Advisor or Associated Person?

No. Minuteman is an internet-based, customizable software platform of tools and services, licensed for use only by registered investment advisors. In a nutshell, "Minuteman" is portfolio management software used by an individual RIA or firm. The Minuteman software license agreement is between Minuteman and the advisor, not the individual clients of the advisor.

Minuteman is not affiliated with any broker, custodian, or clearing firm. Minuteman will not and does not offer any investment advice. The interactions with our advisor-users is limited to software technical support and training.

Q: Are my client accounts private and protected?

Absolutely. Minuteman is a software program always under your control. You can stop or start using Minuteman at any time. It is an add-on service to which you grant "trade-only" permissions in accounts you designate and only for securities you have chosen to use in each model portfolio. Your client personal information is never exposed to the Minuteman software system.

Every client account is held with an independent broker/custodian (not affiliated with Minuteman) and is protected under their strict security against unauthorized access or activity. Minuteman and its patent-pending FLEXbalance™ system have no ability to direct transfers, withdrawals or deposits in an account; it only can effect trades.

Q: Why should I use Minuteman?

Minuteman is a perfect solution for any investment advisor who prefers the proven superiority of passive (or 'indexing') strategies and understands the benefits of using portfolios of indexed Exchange Traded Funds (ETFs). Minuteman offers a more cost and time efficient way to manage your ETF portfolios and is a simple way to provide your clients full transparency. You save time and money and can pass along this savings to your clients.

Q: Can I use the Minuteman with my current broker/custodian?

Possibly. Minuteman requires direct computer access to the broker's trade execution system through an "API" protocol. You may surprised to learn that the industry is technologically behind the times in this respect. Virtually none of the large brokerage firms or their clearing partners have such an interface yet. For the ones that do, with their trade commissions at $9 or higher per ETF, you may want to consider adjusting our automated rebalancing system (which in volatile markets can rebalance monthly or even weekly), to higher tolerance levels.

We suggest Minuteman accounts be held at our preferred broker/custodian whenever possible. Minuteman is not affiliated with any broker, custodian, or clearing firm, but we do recognize a great deal for our software users, when we see it! Trade commission with this preferred broker is just $1 per ETF (up to 200 shares and .005 thereafter). Also, by utilizing the "soft dollar" arrangement available with this broker, there is no "out of pocket" cost for using the Minuteman total platform.

Q: What does the Minuteman cost?

Your cost is dependent on the program(s) and fee structure you choose. A setup fee, in addition to a minimum monthly charge for a private server and exchange data, may apply. Trade costs for portfolio rebalancing activity will also be incurred in each client account. Contact us using "Get Started Now" above, for more information.