Biltmore Investment Managers • Green Bay, Wisconsin
number of disciplines are used in the design of a client’s equity
portfolio. These include diversifying among industries to reduce sector
specific risk, balancing growth prospects with valuation measurements,
and taking into consideration risk tolerance levels and time horizons.
This investment approach is designed to afford clients the opportunity
to participate in a variety of market segments over a market cycle,
because over time various segments are rewarded.
Biltmore Investment Management • Green Bay, Wisconsin
far as fixed income or bond investment are concerned, fixed income
securities are relied upon for two characteristics: steady income
stream, and as a way to stabilize a portfolio. Maturities are kept in
the short to intermediate range and only high quality investment grade
bonds are recommended. This is true whether a client needs involve
investments in municipal, corporate or U.S. Government instruments. It
is our belief that there is not a significant reward to warrant the risk
of investing in low quality or longer-term bonds.
A mutual fund pools money from hundreds and thousands of investors to construct a portfolio of stocks, bonds, real estate, or other securities, according to its charter. Each investor in the fund gets a slice of the total pie.
Mutual funds make it easy to
diversify. Most funds require only moderate minimum investments, from a
few hundred to a few thousand dollars, enabling investors to construct a
diversified portfolio much more cheaply than they could on their own.
are many kinds of stock funds. The number of categories is dizzying.
Some examples: growth funds, which buy shares of burgeoning companies;
sector funds, which buy shares of companies in a particular sector, such
as technology or health care; and index funds, which buy shares of
every stock in a particular index, such as the S&P 500.
Biltmore Investment Management is an independent investment advisory firm. It is a fee based firm, there are no sales commissions, but rather a fee that is based on the market value of the account. In this way our reward is tied to the success of the account over the long-term.
We are regulated on the Federal level by the SEC, and the State level by the Wisconsin Department of Financial Institutions. These regulators hold Biltmore to a much higher Fiduciary Standard in their practice than many of their competitors.
LARGE BANK TRUST DEPARTMENTS
In recent years, trust companies associated with large bank holding companies have undergone a tremendous change, which, unfortunately, has resulted in a decrease of service.
Banks have gone through merger mania. With each acquisition or merger, there is overwhelming pressure to cut staff and services at local levels in an effort to produce the “economies of scale” touted when the merger was announced. As a consequence, the decision-making authority is transferred away from the local level and to a distant out of state bureaucracy that has no knowledge of the local market, or clients goals and desires. Local offices are transitioned away from service delivery, and focus almost exclusively on sales of various proprietary bank products.
In short, they have forced their local officers to move away from their strong emphasis on personal service, which their clients have come to rely on, and more toward expense reduction in an effort to finance the corporations desire to get bigger and bigger. This change is contrary to the desires of the client, and is certainly the principal reason for the substantial turnover in the corporation’s local representatives. No one, not the clients, nor the local employees signed on for this reduction in service levels.
NATIONAL BROKERAGE CHAINS
Much has been written about the lack of independence of the brokerage industry. The fact that these groups are so actively involved in underwriting, bringing companies public and making markets in stocks leads many of their clients to wonder if their investment recommendations are tainted.
Recent revelations in the press have confirmed their client’s fears.
Due to the size and complexity of these organizations, in many cases, the local representative will make good faith recommendations to the client based on directions from the home office and he will not be aware of the self serving nature of the transaction.
Recent Required Disclosure by Brokerage Firms
THIS IS A BROKERAGE SERVICE
The Securities and Exchange Commission requires all broker-dealers who give brokerage advice for a fee to make the following disclosure. Accounts enrolled in this service are brokerage accounts and not advisory accounts. Our interests may not always be the same as yours. We are paid both by you and, sometimes, by people who compensate us based on what you buy. Therefore, our profits, and our salespersons’ compensation, may vary by product and over time.