Frequently Asked Questions

We manage investments for individuals, institutions and financial representatives. Specifically, Spectrum provides portfolio management services to individuals, IRAs, corporate pensions, profit-sharing plans, 401Ks, charitable institutions, foundations, endowments, and trusts. We also serve advisors and individuals targeting specific personal financial goals, from retirement savings to education funding. Please contact our office for more information.

We offer two types of investment management services. One is a tactical asset allocation service we have named SecurityMaxx^SM, consisting of managing client portfolios made up of mutual funds, variable annuities or life insurance on a discretionary basis through a variety of management strategies. The other is a strategic asset allocation service we have named AssetMaxx^SM, which builds clients’ portfolios using our boutique actively managed mutual funds. We have recently introduced our automated active management solution named AssetMaxxGO^SM which offers Spectrum’s boutique funds to build a customized portfolio based on your online risk assessment.

Performance information can be found at SecurityMaxx^SM

Both brokers investment advisors (RIA) and are licensed professionals who assist investors with their financial goals. Brokers are paid through commissions for the trades they make on behalf of their clients and are regulated through bodies such as Financial Industry Regulatory Authority (FINRA). Investment advisors are paid either a flat fee for their time or a percentage of the assets under management. They are legally prohibited from giving investment advice that may conflict with their clients’ needs, meaning they are fiduciaries¹. We are an RIA.

Yes. One thing to keep in mind is the US tax implications that result from income generated by a mutual fund, which may not be ideal for you. Please contact our office so we can talk with you more about the options available for foreign investors.

There will always be risk when investing. The goal is to manage risk as much as possible to keep your money safe, and that is what we strive for here at Spectrum. Following is a partial list of risks that can apply to you depending on how you invest your money:

1. Market Risk:
   • BOND- Downgrading of securities which may be dependent on issuers’ financial condition, default, or interest rates.
   • EQUITY- Risk of loss due to a drop in the per share price of the shares held.
   • INTEREST RATE- Risk of loss due to changes in interest rates.
   • CURRENCY- Risk of loss when you own foreign securities due to movement in the exchange rate.
2. Liquidity Risk- The risk of being unable to sell your investments at a fair price when you want to get out of invested positions.
3. Non-diversified Risk- The risk of being heavily invested in 1 or 2 holdings. Diversification spreads risk over a large number of issues, different types of investments, and in some cases industries.
4. Credit Risk- The risk of loss due to the issues not being able to pay the interest or principal of the debt.
5. Deflation Risk- The risk of loss in purchasing power because the value of your investments does not earn as much as the inflation rate.
6. Longevity Risks- The risk of outliving your investment earnings.

Your portfolio here at Spectrum is highly customizable for your investment needs. Many times a portfolio will consist of both SecurityMaxx^SM and AssetMaxx^SM.

A fee only investment advisor like Spectrum must act as a fiduciary by law. Fiduciaries act in your best interest while making decisions for your portfolio, and must do what is right for you and your specific needs, as well as disclose any conflicts of interest. Brokers generally are paid by commissions, and while there are many great brokers out there, the downside is they are generally paid based on products sold, not by investment advice. Please check answers regarding our fees here (Cost and Expense)

Spectrum’s Client Services Team has experienced individuals to talk with you and walk you through determining your risk tolerance, your objectives for specific investments, and many other topics which factor into portfolio development. We want to know our clients so we are able to help them meet their financial goals.

3rd party custodians are usually brokerage firms or trust companies. These institutional firms actually hold your investments in either a separate account or an omnibus master account controlled by the entity providing the custodial services such as check writing, deposits, withdrawal, transfers, etc. Spectrum does not have custody of client investments.
Great care is given to selecting a 3rd party custodian. The firm must have a good reputation, up-to-date technology, responsive services and the ability to confirm they follow U.S. Securities and Exchange Commission (SEC) required protocols.

Spectrum is an active participant in NAAIM, an association of active money managers and market technicians that promotes education on the use of technical analysis and related investment strategies.

Yes. Spectrum has extensive, nightly offsite computer file backup and recovery plans. On site, Spectrum has a natural gas powered generator to run our office in the event of a power failure as well as redundant data feeds and telecommunication capabilities. In the event of a building or regional disaster Spectrum also has backup plans for personnel and facilities.

Spectrum has built an Investment Services Team which assists in the management of all separately managed accounts (SMA) and mutual fund strategies. Continuity plans have been established to ensure smooth transition of responsibilities if death or disability occurs to one of our investment team members.

Over 10+ years ago we wanted to brand our approach to investing and show how we execute that approach for our clients. We wanted to clearly articulate our company’s vision and how we look at investing differently. We chose VisionMaxx^SM.

Since both of our services use mutual funds, there may be taxable events that take place within your account. We are not tax accounts, and by law cannot give any advice regarding taxes. However, when you speak with our client services team to decide which services and strategies are right for you, taxable impacts are taken into consideration.

For Spectrum’s SecurityMaxx^SM strategies there may be trading costs. Depending on what mutual fund is selected a $16.95 transaction fee may be charged by the custodian. Not all trades will incur transaction fees. Spectrum does not participate in these fees. There are no commissions generated in any of our SecurityMaxx^SM strategies. Our trading team takes great care when selecting mutual funds used in SecurityMaxx^SM strategies. Fund selection is important to your portfolios’ performance and every selection is made with multiple levels of research and filters.

Spectrum's SecurityMaxx^SM service calculates advisory fees based on the dollar amount of assets under management. Fees are not based upon a share of capital gains or capital appreciation of the assets managed. Spectrum's AssetMaxx^SM and AssetMaxxGO^SM services will receive a servicing fee (12b-1) generated by the Hundredfold Select Alternative Fund as payment for ongoing account maintenance. For The Spectrum Funds, Spectrum receives a management fee for its sub-advisory services. When these fees are paid, Spectrum's normal SecurityMaxx^SM fee structure does not apply.

All strategies offered through Ceros Financial Services or Schwab are charged a quarterly fee of .48% except for the Leveraged High Yield Strategy which is .63%. Quarterly fees are billed one quarter in advance and no prorated refunds are available. For Variable Annuity or Life Insurance Products, billing is done annually in advance. Accounts are billed at 1.9% of the contract value at the time of billing. Annually billed accounts, if cancelled, may have prorated fees refunded to the client.

This question relates to the AssetMaxx^SM actively managed mutual funds. An expense ratio is calculated annually and represents the ratio of expenses to the equity within the mutual fund. Part of the expense ratio is the management fee, which is paid to the portfolio manager for portfolio management. An expense ratio exists for all mutual funds.

Many funds used by our strategies do not have a transaction fee when traded. Specific funds may have these costs due to the product not being on a non-transaction fee (NTF) platform. Typically, these funds with transaction fees may have lower expense ratios or better performance. Of course, this is not a guarantee.

Yes, all materials generated by Spectrum are net fees unless specifically stated

Your money is held at 3rd party custodians. These custodians are closely monitored by the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC). These are regulatory bodies to protect investors. FINRA is a non-government organization authorized by Congress to protect America’s investors by making sure the broker dealer industry operates fairly and honestly. The SEC is an agency of the U.S. federal government whose primary responsibility is to protect investors.

Spectrum provides a privacy notice annually to clients which states that we do not share our client data unless it is with our 3rd party partners. You can view our privacy policy here.

Initially, our Client Services Team will help you create a diversified portfolio among Spectrum's various management strategies. This includes setting up the accounts with a 3rd party custodian allocating you into the right positions.
Spectrum also offers an online solution AssetMaxxGO^SM that allows investors to create their own portfolio mix depending on a number of weighted risk assessment questions. Once these are completed, an investor can open an account using AssetMaxxGO^SM onboarding process.

On the contract anniversary, holdings and the performance for the 12-month period will be reported to you. A quarterly newsletter is also provided outlining a non-weighted average performance for strategies during that period. Statements are also generated by the custodian on a monthly or quarterly basis depending on client preference. Clients are always welcome to contact our office at any time to talk about your portfolio.

Just call Spectrum's office and speak with a Client Services Team member. After talking with you and finding a solution to your portfolio needs, our Client Services Team will provide you with the proper account paperwork to open your account. During this process, you will be directed on how to fund your account. This is usually done by check, wire, or a Transfer of Asset form. Our AssetMaxxGO^SM service offers clients an online solution that allows you to open your account automatically and become invested in mutual funds offered in our AssetMaxxGO^SM service.

One of the reasons we like to use mutual funds is because they are highly liquid. Liquidity is another word for accessible. The majority of the mutual funds we use can be sold before market closure at 4pm, and sent to you the next day. There will be times you may be invested in an “T+3” fund which means it will take 3 days for your money to be sent to you.
Our Client Services Team can arrange for a check to be mailed to the address of record. If wiring instructions were established on the account when it was set up, you may have the funds wired. The Custodian often charges a small fee for this service.

Spectrum’s accounts are actively managed and therefore we discourage non-managed portions in the account. You may call our office for additional information on how we handle unique situations.

Online account viewing is available and can be established when you set up an account either through our office or AssetMaxxGO^SM. Logins can be found here.

Spectrum's strategies have minimum account sizes ranging from $50,000 to $250,000 depending on the strategy and the custodian selected.
AssetMaxxGO^SM has lower minimums starting at $10,000.

Yes, Spectrum can assist with rolling over funds from corporate pensions.

We build our SecurityMaxx^SM strategies from investment models created for unique or specific asset exposure. Those investment models are comprised of various analytical tools that give us a daily message to best manage risk and provide potential for a steady return. We monitor all strategies on a daily basis to make sure we are striving to meet the objective of managing risk and providing desirable returns, relative to the asset class.

Ralph Doudera, selected sub-advisors (managers), and the investment team review information gathered daily using charting, technical and cyclical analysis. The use of newspapers, magazines, newsletters and other information is also incorporated into the analysis. After review of the information, decisions are made on what and when to buy and sell. Clients are not consulted with prior to entering orders on their behalf.

It will depend on the service or strategy selected. The trading frequency in SecurityMaxx^SM strategies will depend on the strategy. Please refer to our SecurityMaxx^SM strategy stories here to find out the trading frequency unique to that strategy, or you can always contact our office and our Client Services Team would be happy to talk with you. Aside from the frequency of trades or rebalances in your account, our investment team is monitoring markets on a second-by-second, hourly, and daily basis to actively manage risk and provide a steady return for our investors. AssetMaxx^SM allocations are not rebalanced or traded unless the client’s objectives and/or risks change.

At any time, our client services team can provide you with several different types of portfolio reports, including general tax reports to help your accountant during tax season. However, you will receive at least one annual investment summary report on your anniversary month. By law, our 3rd party custodians will send you a monthly investment statement with your investment positions and any transaction history. Our client service team is here to assist you and service any of your investment needs. Our door and phone lines are always open for our clients.

Our asset allocation service allocates a client’s assets between actively managed mutual funds. Since the service has an emphasis on asset allocation, we decided on branding this service AssetMaxx^SM

ETFs, or exchange traded funds, are products that offer an investor the ability to pool their money in a fund. The ETF can invest in products like bonds, stocks or other assets just like mutual funds. One of the main differences between an ETF and a mutual fund comes from where and how the ETF shares are traded. ETFs are traded on the national stock exchange, meaning you can buy and sell an ETF at any time during market hours. Most mutual funds are purchased or sold at the end of each trading day at its net asset value (NAV) per share (some can trade “intra-day”). There are other differences between these two types of investment products, but how the ETFs are priced and traded are mainly where these products differ. At Spectrum, we have decided to use mutual funds in both our SecurityMaxx^SM (separately managed accounts) strategies and AssetMaxx^SM (actively managed funds) allocation service because of the liquidity and risk management a mutual fund can offer. The argument can be made that the cost of a fund vs. ETF is greater which is true when just comparing, but if a mutual fund is built to be actively managed and held long-term because of its active management vs. buying and selling an ETF constantly, then the ETF trading cost can add up and sometimes equal the same or more for an investor.

The strategies in our SecurityMaxx^SM service were built so that all strategies can, and may, go to a defensive cash position in severe market environments for the security of investment principle. Since our main goal is to secure your principal so you have investable dollars for the next healthy market environement, we decided to brand this service SecurityMaxx^SM.

• Financial professional

If you have forgotten your login credentials, please contact our office and we will provide you with new credentials.

• AssetMaxxGO^SM

If you have forgotten your login credentials, follow the instructions on the AssetMaxxGO^SM login page to reset your password.

• Direct Spectrum Retail Investor

If you have forgotten your Ceros username, please email or call our office. Our Client Services Team will facilitate resetting your username. If you have forgotten your password, please follow the instructions on the Ceros login page.

The relationships we have with financial advisors are important to us, so please contact your financial advisors first for all your questions. If your advisor directs you to contact us, our client service team will be happy to assist you.