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Frequently Asked Questions

What Exactly does PJS Investment Management do?

PJS Investment Management provides a fee-only, personal and professional investment experience with an emphasis on strong after-tax performance and long-term relationship with our clients. Quite simply, we attempt to take the worry out of personal finance and help individuals and families make wise financial decisions at critical times in their lives.

Why seek professional portfolio management?

The current state of the economy has definitely contributed to financial stress and anxiety among individual investors. The predominant sentiment of the average investor is fear, cynicism, disillusionment with old theories, tired advisors, myopic money managers. The options available to many are lackluster due to the professional seeming less skilled at building solutions and more likely to sell products or recommend complex instruments. Instead of focusing on outcomes or setting goals, too many are focused on marketing, growing assets, and hosting fancy client events.

We believe professional portfolio management is a disciplined skill that can be improved with education and experience – however, don’t leave out the realism of everyday common sense! The basic realities of risk and return, of cost vs. value, and the importance of integrity and self-knowledge do not change because the topic is money management.

Our goal is to promote healthy investment behavior – advocating a disciplined unemotional approach to investing. Decisions based on emotions can be very costly, as they all too often lead investors to buy high and to sell low.

What is a Fiduciary duty?

A fiduciary duty is the highest standard of care at either equity or law. A good question to ask might be, “Are you a ‘Fiduciary’ and thereby legally obligated to work only for me, the client, or are you a ‘salesperson’ and only obligated to meet a sales suitability standard?” True advisors are not and never should be sales people. PJS Investment Management is held to this fiduciary standard and always strives to act in the best interest of their clients.

What qualities should someone look for in an investment professional?

Trust – To begin developing trust in your asset manager, you should be able to ask them about their experience, expertise, credentials and references. A salesperson or broker may have a financial background but rarely has the experience or credentials to fundamentally analyze prospective investment opportunities being made on your behalf. Meeting regularly to review client objectives and progress, effectively communicating and acting as a fiduciary to our clients, exhibit just some of the reasons why clients have chosen PJS Investment Management as their trusted advisor. Additional client and professional references are available upon request.

Competence – There are no shortcuts in knowledge and analysis. Our portfolio managers have extensive education, training and experience in the area of financial analysis and portfolio management. As a result of our experiences, PJS Investment Management believes risk control via strategic diversification among different asset classes, minimizing fees and tax consequences associated with investing, and understanding of our clients’ objectives are critical to investment success.

Independence - One factor that is often neglected when people choose a financial professional is their independence. The assumption is that if they work for a recognizable institution, they must be free of any conflict of interest issues. The reality is many advisors at well-known institutions are compensated in ways that compromise their independence. Some advisors have affiliations with other financial companies, e.g. mutual funds, insurance, banks, etc., which compensate the advisor for putting clients in investments managed by the affiliated company. Advisors that are not strictly fee-based may also be compensated via commissions generated on the purchase or sale of investments for their clients.

PJS Investment Management does not have an affiliation with any insurance company, major wire house or financial institution. PJS Investment Management's fee is based solely on a percentage of assets under management and we are not compensated via incentives or commissions when purchasing or selling investments on behalf of our clients.

Accessibility – A criteria that is often overlooked that should be a primary factor to look for is timely access to the asset manager of your account. Frustration can set in when a salesperson cannot answer the questions you have about the investments in your portfolio. As a boutique investment firm, our clients have direct access to their portfolio manager. Rather than being two or three persons removed from the investment professional performing analytics and making the investment decisions, your personal portfolio manager at PJS Investment Management can provide you with thorough and logical explanations to your questions in a relaxed setting.

Security – You should ask which custodian your investment advisor uses, i.e. where your assets are held. Is it an institution that is a potential party to a conflict of interest or is it a custodian that is completely independent?

PJS Investment Management clients typically utilize the services of Fidelity, an established custodian firm which independent registered investment advisers (RIAs) can rely for news, trading, research, and custody of their clients’ assets. Clients can access their portfolio online at any time.

How is PJS Investment Management regulated?

We are regulated by the U.S. Securities and Exchange Commission (SEC). This registration doesn't mean that the person is recommended by the SEC, it simply means that they are regulated by the SEC.

How is PJS Investment Management compensated?

We are compensated by fees determined on the assets under management, not commissions on products that some in the industry. Fee-only not only describes how we are compensated but rather describes one who has minimized potential conflicts of interest and works only for the client. True fee-only advisors are a rare breed.

What is an Investment Policy Statement (IPS)?

An Investment Policy Statement (IPS) is a written document which states one's investment philosophy, goals, guidelines, and constraints to be adhered to with respect to money management. Every investor should have one but only a competent advisor is likely to be able to make sure the IPS created does what it is supposed to do.