SERVICES AND STRATEGIES
"...regardless of style, the strategy is to protect and preserve your assets while seeking competitive returns."
"You must assess what percentage of your assets you are comfortable investing in stocks versus bonds."
"Informed intuition will lead to rational speculation."
"The goal should be consistency."
"Long-term performance is our most important product."
Individual circumstances, future plans, and even personality type lead to the necessity of multiple investment styles.
We recognize that you are unique, and your reasons for selecting a particular style are your own.
At JPIC we offer several different types of account management. Typically, we meet with you to determine your needs as they pertain to income, growth, and risk tolerance. A clear understanding of your individual situation, your goals, and your desires will assist us in the determination of appropriate asset allocation and investment strategy. Together, as client and manager, we reach a decision as to the types of securities in which your account will be invested, and the proper proportions thereof. We then move slowly and carefully, investing your funds as if they were our own.
TYPES OF ACCOUNTS:
Equity accounts primarily hold common stocks and may also hold convertible bonds and convertible preferreds. Issues are selected based upon balance sheet data, relative valuation, and growth prospects, among other factors. We are patient, long-term investors.
Convertibles are often utilized as a balance, and provide cash flow and equity participation.
Objective: Designed to give you maximum capital appreciation, but carries a higher level of market risk.
Consists of primarily investment-grade bonds, and may be balanced with convertible issues, as determined in conference with you, the client. We will occasionally use preferred stocks.
Issues are selected based upon balance sheet strength, call information, and yield, among other factors. Maturities are "laddered". (Convertibles are often not of investment grade, thus utilization of these securities is determined on an individual account basis.)
Objective: Market risk in this style is small, and cash flow is maximized.
A combination of stocks, convertibles and bonds, the proportions determined by JPIC and you, the client. Securities are selected as described above.
Objective: Offers moderate capital growth, stability of principal, and cash flow.
The Process of Opening an Account
When you have decided to engage us, we will ask you to sign our Investment Management Agreement. This document is fairly simple and straightforward; it is a durable, limited power of attorney that gives Pappas full discretion to make the buy and sell decisions in your account, and to receive duplicate confirmations and monthly statements of that account. It is specific in the matter of withdrawal of money or securities from your account: you are the only party with that privilege or ability.
You will then open an account at a brokerage firm, and we strongly prefer that you select from among the brokers (live or online) that we regularly use. This handful of brokers, all at major firms, are effectively a part of the team servicing your account. Using a member of this "team" is ultimately to your advantage as well as ours, as it permits efficiency in placing orders and negotiating rates.
JPIC does not receive or hold any of your securities or cash. The brokerage firm provides these custodial services and also insures the account.
You will receive confirmations of all purchases and sales, as well as a regular monthly statement, directly from the broker. Every calendar quarter you will receive a statement from JPIC, which will recap securities held, prices paid, market value, and performance, along with a brief letter outlining our views on the quarter just past and our thoughts as to the upcoming periods. (View a sampling of these letters under the Quarterly Letters tab.)
While we or your broker can often assist in providing missing documents, it is the ultimate responsibility of you, the client, to retain all confirmations and all necessary tax information.
Our billing accompanies our quarterly statement, and our fees are as follows:
For Equities, we bill quarterly in advance at the rate of one-quarter of one percent (1% per annum), based upon the value of the stocks held in your account at the beginning of each calendar quarter.
For Fixed Income, we bill quarterly in advance at the rate of one-eighth of one percent (0.5% per annum), based upon the value of your account at the beginning of each calendar quarter.
In both types of accounts, cash balances and convertible securities are considered as fixed income for billing purposes.
Please note that hiring an Investment Adviser in no way protects you from loss of principal. We will exercise prudence and diligence in an effort to achieve your investment goals, but it is important that you acknowledge and understand the risks inherent in securities investments and that you agree to assume those risks.
You can reach us:
Via telephone at 1-800-JIM PAPPAS
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