AG Edwards CAPs Program
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Jun 7, 2006 3:37 pm
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?
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.