Personal Asset Management (PAM)

Protect Capital
Allocate for Investment Goals
Monitor For Performance

This personalized management of your Financial Assets is what makes PAM the ideal partner for many investors. This personal service requires a two-pronged approach to asset management.

1. Planning to anticipate known financial requirements
2. Responding to unforeseen situations or events

Each investor’s needs are unique, and from time to time, those needs can change. Planning in advance and addressing unforeseen circumstances are vital. This flexibility is important in keeping your investment picture in balance.

FIRST WE LISTEN

A thorough and complete understanding of your investment goals is the first order of business. We conduct a Confidential Interview to determine your Investment Profile. This will help us determine the best way to allocate and employ your assets.

Diversification of the assets is the most critical component for working towards a successful investment strategy. PAM employs a three-step allocation model which allows us to begin customizing each step to match your investor profile. 

PRIMARY ALLOCATION

First the model is designed to allocate between three categories:

1. Cash / Cash Equivalents
2. Equities
3. Fixed Income
   

These allocations are determined based upon your personal financial objectives, risk tolerance, time horizon, an analysis of the current and forecasted economic environment and the existing current dynamic market conditions.

ECONOMIC SECTOR ALLOCATION     

The sector allocation is determined through analysis of different areas of the economy and of business sectors. Some of these are:

   1. Consumer Staples                    6.  Capital Goods               
   2. Utilities                                    7.  Technology
   3. Energy                                     8.  Transportation
   4. Basic Industry                          9.  Consumer Services                                                   
   5.  Health Care                           10.  Pharmaceuticals
 

SECURITIES SELECTION

This allocation identifies individual securities that are compatible to the personalized investment profile. Cash / Cash Equivalents typically utilize Money Market Funds as a component of almost every strategy. These are used as a ready source for future opportunities that may arise and as a defensive position to reduce volatility.

Equities are selected through our proprietary screening process and then allocated to selected PAM accounts as they qualify for inclusion determined by the investment profile for each account.

FIXED INCOME

Fixed Income choices are numerous and complicated. First, we carefully consider which choices are suitable candidates to fit your individual profile. The following broad choices shall provide part of the scope of our consideration and starts with the taxable vs. non-taxable question. If it is taxable, which is the most suitable, Government or Corporate? Then we must mindfully screen through:

   1. Quality of Issuer                    5.  Individual issues or  Packaged Portfolios
   2. Length of Maturity                 6.  Open End or Closed End Funds
   3. Rating                                  7.  ETF or Managed Bond Portfolios
   4. Call Features

MONITORING YOUR PORTFOLIOS

Your individual PAM account is monitored and a decision made each day for any required action. Our intention is to remain balanced in allocating to minimize frequent changes. We recognize the broad markets are subject to volatility and wide swings, even on a daily basis. Consequently, we exercise discipline to remove the emotion that creates premature purchases and liquidations; chasing markets usually results with dismal results and disappointment.

REPORTING THE DETAILS

You shall receive a daily confirmation for all purchases and security sells. You shall receive a monthly statement that outlines all the activity in the account, the value of the account and summary of any additions or withdrawals. Each quarter, you shall receive a QUARTERLY REPORT that provides:

   1. An Asset Allocation Pie Chart
                  Visual reference to how the assets are employed by industry sectors

   2.  Unrealized Gain and Loss Report
                   Provides a list of Asset Owned, Date of Purchase, Current Market Value,      
                   Unrealized Gains or Losses, Performance Report for Current Quarter, Year    
                   To Date and from Account Inception compared to the appropriate indices

   3. A summary of all purchases and sells that include:
                  a. Date of Sale
                  b. Initial Cost
                  c. Amount of Proceeds
                  d. Realized gain or <Loss>
                  e. Tax Implications Long or Short-Term  Capital gain or <Loss> 

Remember that we provide ready access to your account through the internet, which allows you to access your account at will.

FEES

Fees are always a very important consideration. Believe it or not, this is an issue we like to discuss, so all parties concerned are confident that value and fairness are achieved. We will not be the cheapest you can find, nor will we be the most expensive. Our goal is for you to receive a fee that is fair and comfortable. In turn, we wish to receive a fair profit for our services.

We do have a fee schedule; however, these fees are negotiable. They are determined by several factors. Some of these factors are:

1. Account Values
2. Account Requirements
3. Special Account Request

We do have a very special common interest in keeping fees as low as possible. The better the account performs the more we both gain. As fees are based on account values, if the account doubles, so do our fees. We both benefit when fees DO NOT degrade performance. The second advantage we hope to receive is HIGH CLIENT SATISFACTION.

We believe this satisfaction will encourage you to tell your family and friends about MCPHERSON ASSET MANAGEMENT. It is very important for us to receive referrals. We do not have an active program for solicitation and do not dilute our personal client service with daily marketing efforts. This policy has proved effective and successful for us since 1993.

In summary, we look forward to talking with you about the cost of MCPHERSON PERSONAL ASSET MANAGEMENT.

Comparative summary of PAM and SAM:

PAM provides for greater flexibility for individual personal account management that can be tailored for personal preferences and micro-managed according to investment objectives.

SAM provides for the daily management of each account with fewer options to micro-manage for stated investment objectives. Consequently, the associated cost is reduced for SAM investment services which are considered when determining management fees.