ETF Portfolio Management LLC plans to give back, a little at a time.
The Los Angeles- and New York-based firm that manages exchange-traded funds pledged last month to donate 15% of its advisory fees to schools and charities, according to an e-mail from David S. Kreinces, portfolio manager and firm founder.
However, ETF Portfolio Management executives plan to fulfill that promise in stages. The pledge applied to new clients starting Dec. 16. Donations will not be made based on advisory fees earned by the 2-year-old firm from existing clients until next year, Mr. Kreinces stated in his e-mail.
What's more, ETF Portfolio Management does not charge advisory fees on all of its strategies. It has not charged advisory fees on its passive core portfolios since the firm's founding in 2007. The firm also offers five actively managed absolute-return portfolios: five absolute-return strategies include three long-only and two long/short portfolios, according to its website.
“On an annual basis, we plan to ask each client to submit one 501(c)(3) entity for us to send 15% of their respective gross annual advisory fees as a donation in their honor,” Mr. Kreinces said in a separate e-mail response to questions. “Our plan is to support a diverse group of schools and charities that reflect our direct partnership with our clients and their communities.” — Arleen Jacobius
