Skip to main content

  •  844-882-0193
  •   jeanne.lipson@sunflowerbank.com
  •  

    • Home
    • Who We Are 
      • Mission
      • Philosophy
      • Process
      • In the News
    • What We Do 
      • Model Management
      • Product Management
      • Program Management
      • Portfolio Construction
      • Portfolio Rebalancing
    • What Makes Us Different 
      • Active Risk Management
      • A Better Cost Equation
      • Tax-Aware Trading
      • Institutional Quality Manager Due Diligence
      • Portfolio Customization
      • Portfolio Transitions
    • Investment Insights 
      • Industry Thought Leadership
      • Useful Websites
      • Financial Calculators
    • Contact

      You are here

    1. Home
    2. What Makes Us Different
    3. A Better Cost Equation

    A Better Cost Equation

    • Share on Facebook
    • Google Plus One
    • Tweet Widget
    • Linkedin Share Button
    • Pinterest

    Perhaps the most important and overlooked consideration in pursuing superior outcomes for clients is the impact of expenses. The relevant outcome for a client portfolio is the net return after all costs are accounted for, including advisory fees, manager fees, and trading costs including bid/ask spreads. Logia pursues the best possible outcome, by reducing costs where it is not justified by the potential value added.

    Separating Beta from the Pursuit of Alpha

    Research shows that a substantial portion of return for active managers is a function of simply participating in the market (Beta).* This is particularly true for core markets, such as large cap stocks. Very few managers achieve a statistically significant excess return over the market (Alpha) after factoring out decisions they don’t control.

    Beta can be bought via ETFs or index funds at a much lower cost than active management, often resulting in better net returns to investors. Logia takes the advantage one step further by manufacturing Beta - modeling the indices with individual securities - creating additional cost savings and better net returns. It also allows for customizations to portfolios, accommodating unique investor preferences or requirements.

    Accessing Active Managers Via Models-Based Management

    Even where active management is justified, or preferred by clients, Logia has the ability to deliver significant savings over conventional mutual funds or separate account managers through models-based management.

    In the models-based approach, managers deliver and update their model portfolio, including the securities and weightings. Logia can implement the strategy at a much lower cost and with much greater control. The models-based approach allows for more effective management of the total portfolio’s tracking error, and enables Logia to customize for clients based on their social or other investment restrictions.

     

    *"The case for Vanguard active management: Solving the low-cost/top-talent paradox?" published January 2013 by Vanguard research, authors Daniel W. Wallick, Brian R. Wimmer, CFA, and James D. Martielli, CFA. Vanguard calculations using data from Morningstar, inc., period ended December 31, 2011.

    What Makes Us Different

    • Active Risk Management
    • A Better Cost Equation
    • Tax-Aware Trading
    • Institutional Quality Manager Due Diligence
    • Portfolio Customization
    • Portfolio Transitions

    Book a Meeting

    15100 Rosewood Street
    Leawood, KS 66224
    •  Tel: 844-882-0193
    •  jeanne.lipson@sunflowerbank.com
    •  

    Investment advisory services are offered through Logia Portfolio Management LLC (“Logia”), an SEC-registered investment adviser. Logia is affiliated with Sunflower Bank, N.A. (“Sunflower Bank”). Both Logia and Sunflower Bank are wholly owned by FirstSun Capital Bancorp (“FirstSun”).

    Sunflower Bank offers various banking, fiduciary and custody products and services, including discretionary portfolio management. In such cases, Sunflower Bank is responsible for the day-to-day management of these accounts.

    Nothing on this website constitutes investment, legal or tax advice, nor that any performance data or any recommendation that any particular security, portfolio of securities, transaction, investment or planning strategy is suitable for any specific person. Investment advice can only be rendered after the engagement of Logia, execution of required documentation, and receipt of required disclosures. Investments in securities involve the risk of loss. Any past performance is no guarantee of future results. Advisory services are only offered to clients or prospective clients where Logia and its advisors are properly licensed or exempted. For more information, please go to https://adviserinfo.sec.gov and search by our firm name or by our CRD #: 269963.

    Click here for FirstSun’s Privacy Policy.

    © 2025 Logia Portfolio Management. All rights reserved.

    Website Design For Financial Services Professionals