AG Edwards CAPs Program

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Jun 7, 2006 11:37 am

Does anyone know what this is?  I heard it was a wrap fee around ETFs.  How much do they charge - what is the broker payout?

Jun 7, 2006 12:34 pm

You are partially correct. "CAAP" or Cyclical Asset Allocation Program is a wrap fee around ETF's. The specific sector allocation strategy is driven by internal strategy recommendations from AGE...this is a discreationary account.

Payout is:  First $250k 2.25%/Next $250k 1.75%/then 1.5%. Broker receives 40% which is paid quarterly.

I have used it with about half dozen clients & the performance was very competitive up until recently & like everything else it's gone to hell in a hand basket.

Jun 7, 2006 6:29 pm

Mucho Gracias