Capital Income Management, LLC (CIM) offers individual account management to high-net worth investors, trusts, businesses and retirement plans/IRAs. Getting to understand your financial picture and your financial goals is the first step in our client relationship. Whether you're nearing retirement, have come into more investable assets, rolling over your 401(k) or just want to consider a new investment approach, every client relationship is unique and we strive to ensure that we are answering your questions and meeting your expectations.

Communicating with our clients and keeping them informed during the inevitable ups and downs of the markets is also paramount. We're confident that once a client understands our investment thesis and strategy that they will feel more comfortable with their investments in all market environments. Since the financial crisis of 2008, we hear more and more from clients that protection of principal and more income is their primary objective. Our goal is to meet these needs and to smooth out portfolio returns no matter how the markets perform.

The client relationship is important to us and our services are designed to make the client feel involved every step of the way. Some of the more common questions we encounter early in the client relationship are as follows.

FAQ's


Where Are Accounts Held?

Accounts are held at Scottrade Advisor Services though CIM can act as an Investment Advisor at other brokers such as Charles Schwab, if a client needs to retain their current discount broker. Please contact us for more information.

Does CIM Ever Have Access To Client Assets?

No. CIM acts only as the limited discretionary investment advisor. All account assets are held at the selected custodian, typically Scottrade Advisor Services. In addition, all account statements and tax documents are issued by the custodian as well.

What Is Your Management Fee?

Management fees are applied based on account assets. Typically, for the first $250,000 of householded assets, a management fee of 1.2% is applied. For the next $250,000 in householded assets, a management fee of 0.9% is applied, and so on and so forth. Please contact us for more information.

Are There Broker Commissions?

Yes. Brokers will apply their standard commission rate to all trades in the account. For Scottrade Advisor Services the standard commission rate is $7 for most security trades. Some online brokers, such as Scottrade do offer commission free ETF trading for certain affiliated ETF securities.

How Does Trading In My Account Work?

We typically do bulk trades in a master account and then allocate securities to each account based on the security weighting by percentage. For example, if 10,000 shares of XYZ is purchased and will represent a 3% weighting in each account, then the total number of shares are allocated to each account according to that 3%. Each account allocation is then charged a standard commission fee no matter the total number of shares.

How Many Positions Will I Have In My Account?

Portfolios typically include 15-20 positions in Exchange Traded funds (ETFs) and Closed-End funds (CEFs). We typically hold core positions in our buy rated CEFs though these positions may be added to or reduced during ex-dividend periods or when extreme dislocations occurs.

Will I Be Able To Have Online Access To My Account?

Absolutely. Accounts are accessible online through Scottrade's standard login screen or through your existing broker. Client's can also have check writing capability as well as automatic monthly or periodic distributions.



Capital Income Management, LLC is a Registered Investment Advisor licensed in Oregon. Prior to conducting business in any other state, the firm will ensure that all licensing requirements or exemptions from licensing are met.