Professionally Managed Portfolios of Exchange Traded Funds (ETF’s)
Efficient Market Advisors, LLC is the Investment Advisor to the Efficient Market Portfolios™ account. Efficient Market Portfolios accounts provide investors with an account that seeks to maximize investment performance given the investor's time horizon and willingness to accept risk. The Efficient Market Portfolios account is offered exclusively through qualified financial advisors and Efficient Market Advisors. LLC.
|
| |
Herb W. Morgan
Chief Investment Officer, Efficient Market Advisors, LLC |
 Herb W. Morgan
Chief Investment
Officer
|
Herb W. Morgan is CEO and Chief Investment Officer of Efficient Market Advisors, LLC (EMA), which he founded in 2004. Considered to be one of the nation’s premier experts in the area of Exchange Traded Funds, he is the creator of the Efficient Market Portfolios Account, a unique low cost, tax-efficient investment account that utilizes Exchange Traded Funds. (ETFs)
Prior to becoming CEO of EMA, Mr. Morgan held the post of Senior Vice President of Advisory at Linsco/Private Ledger Financial Services, Inc. His role involved leading the nationwide business efforts, and managing LPL’s entire advisory account offerings. While at LPL Mr. Morgan successfully launched the Optimum Market Portfolios Account which grew to over $600 million in client assets in its first year of operation. Mr. Morgan was also Sr. Vice President with Dreyfus as well as Sr. Vice President with ING Funds group. (Then known as Pilgrim Funds) From 1990 to 1996 Herb held positions with J&W Seligman & Co. Herb Morgan graduated from The University of California, Santa Cruz with a Bachelor of Arts Degree in Economics. (Honors)
Mr. Morgan has been interviewed by multiple publications including Forbes Magazine, CBS Market Watch, Business Week, Investment News and The Wall Street Journal. Mr. Morgan has also been a guest on Fox News and CNBC television. Additionally, Herb has served as an expert witness in cases involving mutual fund trustee fiduciary liability. Mr. Morgan is an advisory board member of Rydex Financial Services and serves on the Advisory Council of Orion Advisors Services, LLC.
In 2008 Mr. Morgan initiated The Homeowner Empowerment Act of 2008 (HR 5776) which was introduced in the US House of Representatives by Congressman John Shadegg of Arizona. The bill which has 24 co-sponsors is currently in committee.
Mr. Morgan is involved with philanthropy in education where he serves on the board of directors of a non profit public foundation which provides academic scholarships to deserving undergraduate and post graduate students.
Mr. Morgan is the author of “Good Money – Bad Investments” and numerous informational articles for “ETF Investor.com” a financial and investing website. |
| |
| |
Jeffrey C. Anderson, Jr.
Chief Operating Officer, Efficient Market Advisors, LLC |
Jeffrey C. Anderson
Chief Operating
Officer |
In addition, to serving as COO he also is a member of the Investment Policy Committee. Mr. Anderson comes to EMA with 18 years of financial services experience.
Mr. Anderson most recently was President of StandSure Wealth Management an independent investment advisory firm. Prior to founding StandSure Wealth Management in 2003 Mr. Anderson worked for Smith Barney as a Financial Consultant (1996-2003) and Tullett and Tokyo Forex as an inter-bank broker (1989-1996).
Mr. Anderson holds an MBA from Pepperdine University (1993) and a BA from the University of California, Los Angeles (1989). In addition, he also holds a Professional Certificate in International Business from the Thunderbird School of Global Management (1990) and attended the graduate seminar of International Finance at London University (1989). |
| |
|
| |
Austine Crowe
Regional Sales Director, Efficient Market Advisors, LLC |
 Austine Crowe
Regional
Sales Director |
Mr. Crowe joined Efficient Market Advisors, LLC in 2006 and is presently the Regional Sales Director and a member of the firm’s Investment Policy Committee.
Previously, Mr. Crowe was Executive Vice President, Chairman of the Investment Committee and lead portfolio manager at T.O. Richardson Company, Inc. Mr. Crowe was portfolio manager for TO Richardson’s Sector Rotation and Enhanced Index mutual funds. Prior to this, he was a commercial pilot with Eastern Air Lines, Inc where he served on the Air Line Pilots Association Retirement and Insurance Committee.
Mr. Crowe also serves on the Advisory Board of Rydex Financial Services, the Broker Dealer firm for Rydex Mutual Funds.
Mr. Crowe graduated, with merit, from the United States Naval Academy with a Bachelor of Science degree with majors in Mathematics and Aeronautical Engineering. |
| |
| |
Modern Portfolio Theory |
 Harry Markowitz
Economist
|
Our investment philosophy, rooted in academia and nurtured by real world experience, is designed to provide “optimal” before and after tax returns to investors. We use the term “optimal” because our investment philosophy has at its origin the widely accepted Modern Portfolio Theory, developed in 1951 by Nobel Prize winning economist Harry Markowitz. Modern portfolio theory says that for every level of risk an investor is willing to assume there is an optimal asset allocation that is expected to produce the highest result. Mr. Markowitz is not affiliated with EMA.
|
| |
| |
Efficient Market Hypothesis |
 Alfred Cowles
Economist
|
We also subscribe to The Efficient Market Hypothesis originally attributable to economist Alfred Cowles, III. The Efficient Market Hypothesis proposes that security markets are efficient at distributing and incorporating information into security prices. Simply put, the current price of any security incorporates all information currently known about the security and that no one individual can (unless he posesses inside information) know more than any other individual about the future performance of any security. Therefore the theory asserts that no one can predict accurately over a statistically significant period of time, changes in stock prices. |
| |
| |
Taxes Matter |
| |
We utilize Exchange Traded Funds (ETF's) in our client accounts. ETF's are very tax efficient because their holdings are not actively traded, thereby minimizing realized gains which must be distributed. ETF's are constructed to perform nearly identically to an unmanaged index. Trading activity may occur occasionally in an ETF when securities are added or removed from an index. Because our clients own ETF's exclusively they can expect little in the way annual capital gains distributions. We also review each account annually to identify possible "swap" opportunities. A swap opportunity occurs when an investor is carrying a position at a higher cost basis than the current market value. For example, if an investor owns one Large Cap ETF and his/her cost basis is above the market value, then we may swap it for another Large Cap ETF which tracks a similar but not identical index. This is known as "tax loss harvesting". When rebalancing occurs in a client account, we will be selling off some shares of the asset class that has risen the most in their portfolio. This may result in a tax liability for a taxable account. |
| |
|
| |
Expenses Matter |
| |
Investors often overlook the internal expenses of a mutual fund they own. Typically expenses of actively managed mutual funds run in the neighborhood of 1.5% per year. What most people do not know is that the expense ratio published by your mutual fund in its prospectus and elsewhere does not fully account for all expenses. The commissions that a mutual fund pays to buy and sell securities are not included in the expense ratio. These commissions if included can add substantially to your expenses. Exchange Traded Funds not only carry low expense ratios but because they trade their securities infrequently, incur very little in the way of internal commission costs. When you add in the typical fees charged by brokers to administer your account your total expenses can approach four percent.
The website of the Financial Industry Regulatory Authority (FINRA) offers a free Mutual Fund vs. ETF Expense Analyzer.
|
| |
|
 |
View the FINRA's Mutual Fund and ETF Expense Analyzer |
| |
|
