FAQs

  • Frequently Asked Questions

Who owns New Harbor Financial Group?

New Harbor Financial Group is 100% owned by us. We answer only to you.

What are your investment management fees and how are they determined?

We charge a fixed-percentage based on the amount of assets in managed accounts. Due to economies of scale, we charge lower-percentage fees for larger accounts. Fees are clearly reported and automatically debited from the client’s account once per calendar quarter.

In light of our fee-based model, our compensation for managed accounts is independent of how many or how few transactions are executed. Simply put, clients can take comfort in the fact that we never have a financial incentive to create unnecessary or inappropriate activity within their accounts.

Our fees are very transparent. We want our clients to be able to continually compare our fee against the value we add to their financial picture. If a client feels they are not getting sufficient value to justify our fees, they are free to end their relationship with us at any time, without any penalties or constraints.

What types of investment products do you use?

  • Exchange traded funds (ETFs)
  • Stocks (equity securities)
  • Bonds
  • Options
  • Mutual funds

Will you invest in alternative assets like commodities or real estate?

There are times when these asset classes can be important sources of added return, and can potentially reduce overall portfolio risks due to their low correlation with traditional assets, such as stocks and bonds. When our technical models suggest, we will invest modest amounts of client funds in such alternative asset classes as commodities (energy, agricultural, precious/base metals), foreign currencies, and real estate. These products present unique risks and we will only recommend them when suitable to the investor.

Do you manage individual stocks in the portfolio?

Yes. However, we often favor diversified equity investment vehicles. We believe gaining exposure to an entire sector, as opposed to one or a limited number of stocks in that sector, will likely deliver superior risk-adjusted returns. Rest assured that if you have individual stock positions that you would like us to manage as part of your portfolio, we can apply many of the same value-added investment management techniques that we employ with other investment vehicles. Often, important considerations such as unrealized capital gains justify maintaining long-term individual stock holdings.

You talk about risk-managed investing. How do you hedge investment risks in the portfolio?

We use a variety of strategies to manage risk in the portfolio. In terms of portfolio holdings, inverse ETFs, covered call options, protective put options, and collars are all ways to mitigate the investment risk of other holdings. A strategy that hedges risk is NOT the same thing as a hedge fund. See below.

Options involve certain risks and are not suitable for all investors. Copies of the Options Disclosure Document are available from New Harbor Financial Group at (978) 537-7701.

I’m concerned about hedge funds and other complex investments. Do you utilize these types of funds?

We generally do not use illiquid investments such as hedge funds and limited partnerships. Many hedge fund investors learned that not only can these kinds of investments suffer from significant declines in value, but investors may be restricted or limited from withdrawing their money during times of market turmoil.

How is my account protected from fraud?

Integrity and transparency are very important to us. Your account is protected from fraudulent activity through a variety of checks and balances. We use an independent third-party custodian and recordkeeper to track, audit and report on all investments. Deposits to and withdrawals from all client accounts are made directly to them—not us.

As a federally-registered investment adviser, New Harbor Financial Group is directly regulated by the Securities & Exchange Commission.

Finally, you have complete access to all your account information 24/7. See below.

How can I track my portfolio activity and performance?

Clients can access their accounts online 24 hours a day, 7 days a week, through our secure internet login site.

You will receive printed trade confirmations within a couple days of any transaction and monthly statements showing month-end portfolio values, changes in value since prior month, summary of any transactions conducted during the month, and a detailed list of each investment holding in your account. For those clients who prefer electronic delivery of confirmations and statements, we offer that as an alternative.

At least once a year, and as often as requested by a client, we provide detailed performance summaries which show, both graphically and numerically, the actual performance of a client account (net of our fees). This report also compares your account performance relative to appropriate benchmarks, so you can assess whether we are delivering the value you expect from us.

How often does New Harbor review my investment portfolio?

We take an active approach to managing client assets. We monitor the investment markets and investment positions held in client portfolios several times a day, every day.

What if I need money or want to withdraw funds? How long do I have to wait?

Typically, funds will be available to you within a few days of your request. We generally use highly liquid investments that do not have redemption restrictions, and our custodian is able to process withdrawal requests from such investments very quickly.

Do you have a question you don’t see here? Just ask! We welcome your inquiries and look forward to hearing from you soon. You can contact us now at 800.930.NHFG (x6434), 978.537.7701, or by e-mail at info@newharborfinancial.com.