Investment Process

  • Analyze client financial information
    • Assets / liabilities
    • Cash flow
    • Income requirements
    • Tax bracket
  • Set Objectives for portfolio
  • Develop strategy to achieve goals
  • Monitor client relationship
  • Measure and report investment performance
A successful investment management relationship necessarily requires a process. First, investment objectives for an account must be established. Once this is done, a strategy to achieve those objectives is carefully developed. This strategy ultimately determines the allocation of assets among common stocks, bonds and cash. The portfolio is then invested in accordance with the investment strategy.

The process continues with the measuring of the performance of the portfolio and by reporting those results to the client on a quarterly basis. Periodic meetings and constant communication between the client and MMPW not only keep the client informed, but also make certain the investment manager is aware of changes in the client's affairs which may require an adjustment in investment strategy.

Controlling client account information with a highly sophisticated portfolio management system provides accurate accounting at all times. Custodian statements are reconciled each quarter against the records of MMPW to assure that an accurate accounting is being provided by MMPW and by the client's custodian.

Each client receives a portfolio summary, a portfolio review and a portfolio performance report on a quarterly basis. Performance reports provide absolute and relative investment return data for each asset category for the year-to-date, for the previous quarter, for the previous 12 months and since the inception of the account. Reports scheduling investment income and capital gain and loss information are provided on an annual basis to the client. Interim reports and meetings may be requested by the client as frequently as desired. MMPW professionals are also available to meet with the client's accountants and legal advisors whenever the need arises.

Administrative Procedures

Custodial Relationship: Each client must have a custodial relationship with a bank or brokerage firm. The custodian takes possession of all securities, collects dividends and interest and provides for the investment of cash. Each month the custodian provides a statement of the account to the client and to MMPW. MMPW reconciles the information provided by the custodian to assure that all transactions have been recorded.

Investment Management Fees: Fees are computed in accordance with the Firm's fee schedule and are charged quarterly in advance. The client can be billed directly, or have MMPW bill the custodian.

Management Contract: Each client relationship will be governed by an investment management contract outlining the duties and authority of MMPW. This agreement may be terminated by either party upon written notice.

Reporting: MMPW will provide each client with reconciled quarterly reports. These reports will update the condition of the account as reflected by the current market value of the assets. They also will provide investment performance information for different time periods. Performance information is also provided for various indexes for the same periods. This comparative information will allow clients to evaluate the relative performance of their portfolios.

Year-end reports are also provided to each client. These reconciled reports detail capital gains and losses and income and expenses for the calendar year.



  The purpose of this Web site is to provide general information about services provided by Mitchell, McLeod, Pugh & Williams, Inc. This site is not intended to provide investment advice nor is it in any way a solicitation or offer to sell investment advisory services in any jurisdiction in which it would be unlawful to do so. Visitors to this Web site should neither act nor refrain from acting on the basis of any information found on this site without first obtaining advice from a licensed professional.