INVESTMENT ADVICE

JHCo. is in the business of managing individually tailored investment portfolios while acting as a fiduciary (keeping clients best interests first).  Our fee (directly debited from client investment accounts) is 1% annually for accounts under $2,000,000 and 0.75% annually for amounts over $2,000,000.

JHCo. receives no other commissions, kickbacks or fees from any other source than the client.  This reduces the inherent conflicts typically associated with large company brokers.  And this has an important impact on achieving each of our client's objectives.

 

INVESTMENT PHILOSOPHY

The JHCo. primary methods of investment analysis are fundamental and passive investing. We also invite our clients to engage with a discipline that includes sustainable, responsible and impact investing (SRI). 

Sustainable. Responsible. Impact Investing (SRI).

SRI has been interpreted in many ways over the years. We see it as an investing discipline that supports assessing long term return potential and risk reduction by considering environmental, social and corporate governance (ESG) factors. According to the Forum for Sustainable and Responsible Investment (US-SIF):

"Sustainable investors have helped push both public and private companies to be more responsible by improving their ESG (environmental, social, governance) practices in the United States and around the world, benefiting countless individuals and communities. They have moved the investment industry to recognize and consider its exposure to climate change, human trafficking, private prisons, conflict minerals, tobacco, and weapons manufacturing. Famously, sustainable investors used their influence to help end Apartheid by pushing many large multi-national corporations and their investors to withdraw from South Africa." - US-SIF

We work as fiduciaries with our clients and investment partners to address the issues our client's care about while achieving their goals. 

Fundamental analysis involves analyzing individual companies and their industry groups, such as a company’s financial statements, details regarding the company’s product line, the experience, and expertise of the company’s management, and the outlook for the company’s industry. The resulting data is used to measure the true value of the company’s stock compared to the current market value. The risk of fundamental analysis is that information obtained may be incorrect and the analysis may not provide an accurate estimate of earnings, which may be the basis for a stock’s value. If securities prices adjust rapidly to new information, utilizing fundamental analysis may not result in favorable performance.

Passive Investment Management

JHCo. primarily practices passive investment management. Passive investing involves building portfolios that are comprised of various distinct asset classes. The asset classes are weighted in a manner to achieve a desired relationship between correlation, risk and return. Funds that passively capture the returns of the desired asset classes are placed in the portfolio. The funds that are used to build passive portfolios are typically index mutual funds or exchange traded funds.

Passive investment management is characterized by low portfolio expenses (i.e. the funds inside the portfolio have low internal costs), minimal trading costs (due to infrequent trading activity), and relative tax efficiency (because the funds inside the portfolio are tax efficient and turnover inside the portfolio is minimal).

 

HOW TO OPEN AN ACCOUNT

JHCo's technology use and fiduciary oath allows for a more seamless account opening process than was available even five years ago.  After establishing the client relationship through initial meetings, information exchange and contract signing, the process is relatively simple.

Here are the steps:

  1. Book an in person or virtual meeting
  2. Share the traditional application information (name, address, beneficiary information, etc.)
  3. Create an electronic signature via email or in person and "sign" to open the account

And that's it.  If there is an account to move over, that can be handled with another signature and/or phone call.  During the data-gathering process, JHCo. will determine your individual objectives, time horizons, risk tolerance, liquidity and sustainability needs. Your prior investment history will also influence your investment plan as well.  After personal discussions determining your particular circumstances are established, a personal investment policy with an asset allocation target is written. 

For more on how to open an account, our custodian TD Ameritrade or to discuss the JHCo. investment philosophy, just set up a call