What is a Model?
A Model is a filtered list of stocks that meet select quantitative criteria and is continually updated so the stocks that fail to meet the criteria are removed and replaced with stocks that do meet the criteria. Each Model has its own proprietary investment methodology. For more specific information, please contact us directly or review the information from our Model providers.
What happens when I open an account with Ariston - CPR?
Once you have completed the application process, selected an investment Model, and funded your account, Ariston - CPR will invest your assets, monitor your investments and automatically rebalance your portfolio within the FOLIOfn platform. You can access your account online at any time to check balances, receive updates, monthly statements, detailed reports and holdings.
How do I open an account?
To open an account, please call 800.521.0267. An Ariston representative will answer any questions and open your account. If you prefer, let us contact you at your convenience.
What type of account can I open?
We offer a variety of accounts. Learn more about the available accounts
How is my money managed?
Your money is invested in a Model(s). The Model provider provides the filtered list of stocks and applicable weightings for each security. Ariston executes the trades to mirror the Model via the FOLIOfn platform. The trades are executed during FOLIOfn's windows which allow Ariston to buy or sell stocks without having to pay commission. Currently, the windows begin at 11AM and 2PM when the stock market is open.
Who is the custodian for the assets?
The custodian is FOLIOfn Investments Inc. Your money is never sent directly to Ariston - CPR.
What is the relationship between Ariston - CPR and its Model providers?
Ariston - CPR is a registered investment advisor that facilitates the investment in Models. Ariston - CPR enters into licensing agreements with its partners to redistribute, offer and invest its clients' assets in the Models.
What is the minimum investment to open an account with Ariston - CPR?
The minimum investment to open an account with Ariston is $50,000. Please note that some Model providers might have higher minimums.
How do I add money or transfer assets to my account?
After opening an account, you can mail a check, use online bill pay, EFT, wire money, transfer an account, or use direct deposit to fund your investment account with FOLIOfn. Please login to your account or contact us directly for further assistance.
What are the benefits that make Models via Ariston so attractive?Diversification
How do I invest in a Model?
Investors can invest in our Models simply by opening account with Ariston - CPR. You can begin the application process by calling us at 800.521.0267 or contacting us online now.
Are there any dividend distributions?
Yes. Dividends may be reinvested in the Model(s) or paid out as distributions. Depending on the Model, Ariston - CPR typically reinvests the dividends or keeps them in cash in your account.
How often are Models rebalanced?
Each provider has its own methodology and time frame for rebalancing - see specific information from each Model provider. Typically, Models are rebalanced every 4 to 5 weeks but some could be more or less frequently depending on the methodology, corporate actions, and changes in market conditions.
Can I see which stocks are held in the Model?
Yes, after opening an account and investing in a Model you can see all your holdings, balances, performance, etc., by logging into your FOLIOfn account.
What risks are involved?
Models are made up of publicly traded securities that can and will move higher and lower with market movements thus loss of principle is a risk. The investment return and principle value of an investment in Models will fluctuate so that shares, when sold, may be worth more or less than their original cost. An investment in a Model may lose value and is not guaranteed or insured by the FDIC, another government agency or any bank.
Can I lose money?
As with any equity investment, loss of money is a possibility. Read the information and disclosures carefully before investing. The investment is not FDIC insured or guaranteed.
How does Ariston - CPR charge for its services?
Ariston - CPR charges a 1.75% annual management fee that is billed monthly in arrears. Management fees are automatically deducted from the account as a percentage of assets under management. If assets are invested in the middle of the month, the management fee is prorated to reflect the portion of the month the capital has been invested in the model.
Does Ariston short stocks or use margin?
How many stocks are in a Model?
Each provider determines how many stocks are in the Model, but no more than 100 stocks can be in a Model.
Do you provide any tax tracking tools?
FOLIOfn tracks each purchase and sale of a security as an individual tax lot. This enables our system to pick the exact shares that will help you keep your tax bill as low as possible. This is a major benefit of Folios versus mutual funds. With Folios, you escape the unexpected and unwelcome tax bills that often come with mutual funds.
At the end of the year, FOLIOfn will send you a statement listing the dividends you received and the short- and long-term capital gains and losses for securities you have sold. This list can be attached to your Internal Revenue Service Schedule D, or downloaded and imported into popular tax software programs.
How can I monitor the performance of my Folios?
FOLIO Advisor offers a variety of tools that enable you to track the performance of your clients' investments. For example, you can review the performance of a Folio compared to the S&P 500, the Dow Jones Industrial Average, or any mutual fund or individual stock. You can also compare a Folio's sector weightings, price/earnings and price/sales ratios, market capitalization, and beta to the S&P 500 or the Dow Jones Industrial Average.
Do I have to pay a commission for each transaction?
No, Ariston - CPR executes the trades during FOLIOfn's commission free Window Periods (only Tier 1 companies or approximately 3800 co's traded commission free). Ariston attempts to offer models that only contain Tier 1 companies. In rare instances a model could contain a Tier 2 company and a $1.95 commission would apply if a trade were executed.
What do the headers mean in the "Key Statistics" chart?
Alpha is a measure of the performance of the model relative to its market risk (beta) and is the regression intercept. It is calculated by taking the model's excess returns (total return less the 13 week T-bill return over the period) and subtracting from it the model's expected return given its Beta. The model's expected return is given by the Beta multiplied by the market risk premium, which is the S&P 500 return less the 13 week T-bill return over the period. A higher alpha is considered desirable.
Beta is a measure of relative risk and is the regression of the slope. It is a measure of the market risk that the model experiences. It is found by regressing the model's weekly returns and the S&P 500's weekly returns.
Correlation is a measure of similarity of results.
Maximum Draw-down can be loosely defined as the largest drop from a peak to a bottom in a certain time period.
Sharpe Ratio is the risk adjusted return and is the return less the risk free rate (the 3 year average of the 90 day Treasury Bill) divided by the standard deviation. It is a measure of the risk-adjusted returns of the model. A higher value is considered desirable.
Sortino Ratio is the risk adjusted return accounting only for downside deviation and is the return less the risk free rate divided by the standard deviation of negative returns. A higher value is considered desirable.
Volatility is the annualized standard deviation of weekly returns. Volatility is a measure of risk of the investment and lower volatility is considered desirable.