Q: I’m satisfied with investing on my own. Why should I change to Morton Capital Management?

A: With more than 17,000 mutual funds, 9000 individual stocks, Ishares, ETF’s, REIT’s, hedge funds etc., do you really feel capable of developing a consistent, risk-tested, investment portfolio strategy that is right for you??

But that’s just part of the story. Morton Capital believes in the TOTAL RELATIONSHIP. On the investment side, Morton Capital has access to many institutional and closed funds unavailable to most individual investors. Further, MCM clients receive substantial discounts on transaction fees and other services from our primary custodian, Charles Schwab and Company.

Q: Why do you charge a percentage of assets as your fee and not a commission?

A: We believe that our clients should never have to worry about our motivation. By charging a percentage of the assets under management, we believe we can provide you with objective advice that is not tainted by commissions (see MCM disclaimer on MCM’s home page.) We gain as your assets increase and feel your pain when markets decline.

Q: Why shouldn’t I just use index funds?

A: Index fund investing is an assured method of achieving “average” returns (by definition). Our feeling is that with proper analysis, due diligence and research a portfolio of actively managed mutual funds will outperform an indexed portfolio.

For example, consider the rankings of the following Vanguard index funds for the three years ending 12/31/07:

Q: Why do you use mutual funds instead of individual stocks?

A. While we will offer individual stocks in appropriate circumstances, we believe we can add greater value as a “manager of money managers”. In other words, we create an asset allocation for our clients’ portfolio and then select the managers that we believe will provide superior results in each asset class. By managing other money managers, we are able to develop a well-diversified portfolio of money managers. Furthermore, that portfolio will be diversified by investment style and by asset class.

Q: Can you be tax efficient using mutual funds?

A: Yes. Some mutual fund managers focus on being more tax efficient, i.e. low turnover, deferring some sales for long term capital gains. Additionally, prior to year-end we are in contact with the fund managers we are utilizing in order to determine, in advance, what is projected for that fund’s year-end distributions? Where appropriate, in a taxable account, we make adjustments to help minimize income taxes.

Q: How does Morton Capital Management work in teams?

A: There is always one advisor who has primary responsibility for your portfolio. However, Morton Capital Management advisors may also work in teams so that there is more than one advisor familiar with your account, goals, objectives and risk profile. Therefore, should you need to speak with your advisor and they are unavailable, you have the fellow teammate to consult. Also note that MCM uses technology so other advisors can help you in the event that your initial team is unavailable.

Q: How do you communicate with me?

A: We believe that communication with the client should be based upon their comfort level. You automatically receive a quarterly performance report from Morton Capital Management, which supplements your monthly custodial statement. You and your advisory team will decide how often you would like to meet in person in order to review your portfolio. The bottom line is: we will meet with you as often as is necessary in order to educate you and elevate your comfort level.

Q: What makes you different from all the other advisors?

A: MCM is a “boutique firm”. We have never had the philosophy that bigger is better. We believe that our greatest strength is truly understanding our client’s goals and fears, and then customizing a portfolio that will make us partners in their financial success.

We know that’s what everyone will tell you but we are prepared to meet with you, show you our facilities, show you our method of operation and provide you with references with whom you can speak openly about the way we do business.

Q: What is the minimum investment for your firm?

A: Our minimum investment portfolio is generally $1,000,000.

Q: Why do you invest in international funds?

A: We live in a global economy. Most investors don’t realize that both, international and small-cap funds have been the best performers of all major asset classes over the last 30 years. Since 1973, while large-cap stocks have been the best performing asset class 5 times, both small cap stocks and international stocks have been the “best place to be” 9 times! The addition of international funds will add to the diversification of your portfolio.

Q: Why are most funds custodianed at Charles Schwab & Co., Inc?

A: MCM utilizes Charles Schwab & Company to custodian most of its client’s accounts. Schwab is one of the country’s largest discount brokers. Additionally, Schwab offers tremendous research and reporting services to our clients. Finally, MCM is able to download all client information via a secure web site so that we spend more time working for you.