Q & A

What does CAM do?

Custodio Asset Management is exclusively in the business of active management of investment accounts.  At this time, we do not provide individualized financial planning or offer to sell any financial products.

I looked up your performance numbers and tried to cross reference to see which funds matched the rate of return and couldn’t find a match.  What funds do you buy for your clients?

CAM buys a variety of no-load funds offered by Rydex Investments.  By utilizing no-load funds, CAM does not receive a commission from trading any of the funds.  CAM remains focused on performance.  CAM performance numbers are based upon the actual returns of our proprietary investment strategy.  Therefore, no particular fund offered at Rydex Investments will match our investment returns.

What are your fees?  Are they negotiable?

Custodio Asset Management imposes an annual management fee of 3% of assets under management.  The monthly prorated fee of 0.25% is deducted on the first of the month and is based on the previous month-end balance of the account(s).  No additional fees are incurred.  CAM does not negotiate fees.  There are no upfront fees or fees related to terminating the client-adviser relationship.

Are your returns  independently verified by a third party?

Yes.  TimerTrac, an independent firm that retrieves trade transactions directly from Rydex Investments, monitor our rate of returns.  We can provide you with more details upon request.

What are CAM investments?

CAM invests in a variety of no-load mutual funds offered by Rydex Investments.  We do not invest in individual stocks, ETFs, or derivates.

What is the minimum investment with CAM?

At this time, CAM does not have a minimum startup investment requirement.

How many accounts does CAM manage?

As of December 31, 2008, Custodio Asset Management manages 70 investment accounts.  CAM’s single most significant testimonial is that as of this time, CAM has never had a disatisfied investor.

How and when can I access  my account information?

Upon creating an account with CAM, investors are assigned an account number.  Your account representative will familiarize you with the Rydex website (www.rydexfunds.com) where you will create your individual username and password.  You may then access your updated account information at any time.

What is CAM’s withdrawal policy?

CAM has no penalty or fee for withdrawal.  We do not restrict investor activity.  CAM clients may withdraw their funds without penalty at any time.

Does Rydex charge a fee over and above CAM fees?

Yes.  Each Rydex fund has an expense fee of 1.75% annually.  However, CAM’s performance is measured net of those fees.

What is CAM’s biggest monthly gain and loss?

CAM established a new benchmark for gain in July, 2008, when we recorded +10.292%.  At the same time, our year-to-date gain is 11.999%.  Our biggest monthly loss was recorded in January 2008 when CAM recorded -13.804%. 

What percentage of the time is my money invested in Rydex funds?

There are approximately 252 trading days in the fiscal year.  Investor money is invested in the Rydex funds approximately 140 – 150 days per year.  Passive investments, such as a 401(k) are exposed 360 days per year.

Does CAM use leverage?  If so, what is the maximum?

CAM does use leverage.  CAM does not use margin.  Rydex Investments offers leveraged accounts limited to 2x bets of the index either long or inverse funds.  Essentially, an inverse fund is a short fund that does not require short selling or margin requirements. 

How many times a year does  the CAM portfolio turn over?

The CAM portfolio turns over a minimum of 52 times per year.  CAM’s goal is to capture +1% per week.  Once achieved, CAM preserves the gain by moving funds to money market accounts.  CAM constantly evaluates our strategy to best accomplish our targeted goal of 1% per week.

What is the CAM’s maximum peak to trough draw down since inception?

Since inception, CAM’s maximum peak to trough draw down was January 2008 when CAM’s reported loss was -13.8%.  CAM’s most consecutive weekly loss was four.  CAM’s most consecutive positive streak was 15 beginning in February 2008.   As of August 2008, CAM weekly gains are 21 and CAM weekly losses are 9.  In fiscal 2007, we recorded 31 positive weeks and 13 negative weeks.