Clear Objectives and Flexible Strategies
We employ flexible strategies that blend concentrated risk with broader market diversification by investing in individual stocks, bonds, ETFs and mutual funds. Our clients range from conservative to more growth-oriented, depending on their life situation. To effectively meet their investment and financial goals, we actively manage portfolios on a discretionary basis according to distinct GPM objective strategies including:
* Long-Term Growth
* Conservative Fixed Income
* A Balanced Approach that pursues both growth and income
* Tax-Free Fixed Income
GPM favors a value-oriented, multi-cap approach to stock investing, while taxable fixed income portfolios generally include government, corporate and high-yield bonds. Our balanced strategy is our most flexible, with portfolios managed to produce attractive returns with lower volatility than a pure stock approach. Tax-free fixed income portfolios invest in state and municipal bonds.
Our analysts follow securities and companies on their assignment lists closely and provide timely updates and recommendations to other GPM team members. GPMStock, our proprietary database, tracks about 5,500 stocks, ETFs, closed-end funds and indices. We monitor markets, screen our data and evaluate opportunities in an efficient and disciplined manner. Our stock focus list is normally comprised of 150 to 200 companies.
Objective Strategies
GPM's Long-Term Growth Strategy blends concentrated risk with broader market diversification. Portfolios typically hold 20-30 individual stocks for concentration in businesses that we think are attractive. We add ETFs and mutual funds to broaden diversification in the market generally or among sectors, regions and countries that we like. This strategy is straightforward and has been effective. Our stock buy list is dynamic and comprised of companies that are thoroughly researched by GPM and perceived to be substantially undervalued relative to their growth prospects, profits and cash flow. Stock mutual funds and ETFs are selected by GPM after careful, independent research. We evaluate the manager’s investment philosophy, distinct style of stock investing, performance and other factors. As part of GPM's active management strategy, growth portfolios may hold high cash and money market balances at times and also invest in corporate and government bonds, individually or through bond mutual funds, ETFs and closed-end funds (CEFs). Bonds may be owned for both offensive and defensive reasons.
GPM's Taxable Fixed Income Strategy seeks predictable current income by investing conservatively in government, investment grade corporate and high yield bonds. Unless instructed otherwise, up to 25% of the portfolio may be allocated to high-yield (junk) bonds. Allocation between corporate and government bonds will vary depending on perceived opportunities. Active portfolio management includes individual securities, bond mutual funds, ETFs, closed-end funds (CEFs) and at times, high cash and/or money market balances.
GPM's Balanced Strategy pursues growth and income. This strategy emphasizes flexibility, with portfolios managed to produce attractive returns with lower volatility than a pure stock approach. Portfolio composition is tailored to individual client preference and appropriately allocated between stocks and bonds, including government, corporate and high-yield issues. Allocation among classes will vary over time depending on changing market conditions, perceived opportunities and risk. Active portfolio management includes individual securities, stock and bond mutual funds, ETFs, closed-end funds (CEFs) and at times, high cash and/or money market balances.
GPM's Tax-Free Fixed Income Strategy seeks predictable current income that is generally free from Federal Income Tax. Portfolios are conservatively positioned in investment grade state and municipal tax-free bonds. Unless instructed otherwise, up to 20% of the portfolio may also be allocated to high-yield municipals. Securities selection is based on duration, expenses, credit quality and fund composition. Active portfolio management includes bond mutual funds, ETFs, closed-end funds (CEFs), individual securities and at times, high cash and/or money market balances.
* There can be no assurance that portfolio objectives will be realized. Investing involves risk and losses can occur.
Portfolio Setup and Reporting
GPM will establish brokerage accounts solely in your name(s) with our preferred custodian, Charles Schwab & Co., Inc. GPM has discretionary authority to manage the accounts according to your specific guidelines and objectives and implement strategic decisions regarding selection and/or disposition of investments. We keep a close eye on your portfolio and measure performance against appropriate benchmarks.
You are kept well informed of activity and progress in your overall portfolio and individual accounts. Charles Schwab & Co., Inc. will deliver directly to you (electronically or regular mail) confirmations of all transactions on the day they occur, detailed monthly statements and a full year realized gain/loss report to assist you in income tax preparation. GPM provides you with a weekly recap e-mail and clear, concise performance reports with a client letter, shortly after the end of each quarter. Your account(s) can easily be accessed over the internet through the Schwab Alliance website and of course, we are always available to talk.
Standard Annual Portfolio Management Fees
(expressed as % of account assets)
Strategy
|
Annual Fee
|
Account Minimum
|
| Long-Term Growth |
1.00% of first $1,000,000, plus 0.85% above $1,000,000.
|
$100,000 |
|
Taxable Fixed Income |
0.65% of first $1,000,000, plus 0.50% above $1,000,000.
|
$100,000 |
| Balanced |
1.00% of first $1,000,000, plus 0.85% above $1,000,000.
|
$100,000 |
Tax-Free Fixed Income |
0.50% of first $1,000,000, plus 0.35% above $1,000,000, plus 0.30% above $5,000,000.
|
$250,000 |
Our fees are calculated each quarter and automatically deducted from your
account or billed to you for payment.
