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Q:
What are Wescott’s services?
A:
Our services combine financial advisory services with investment management.
This integrated approach is often referred to as Wealth Management.
This approach is equally applicable to individuals (as demonstrated
in our Case Study Section) as to Institutions, which also have important
and sophisticated short and long term financial objectives and restrictions.
Q:
Who works with Wescott clients?
A:
A Wescott Primary Advisor is assigned to each client. Internally a
Secondary Advisor is also assigned for backup and support. Our Advisors
tend to have a specialty in nuances of needs of different client “types”,
as detailed in the Our
Clients Section of this website. However all Advisors are
well experienced and proficient in financial advisory
and portfolio management.
Our
Advisors are supported by our Investment Research Group who ensure
that all portfolios are implemented and maintained in accordance with
our research, strategies and disciplines. All portfolios are reviewed
quarterly by both the Advisor and the Investment Group.
The
Advisor is also supported by the Operations Group, who supports day
to day client portfolio needs as well as Quarterly Reporting to clients.
Q:
What is Wescott’s role in my investments?
A: Wescott’s
Investment Research Group, led by our Chief Investment Officer, provides
model portfolios of diversified investment strategies. These models
are implemented in client portfolios.
Q:
What is Wescott’s Investment Philosophy?
A: History
has demonstrated that investment cycles repeat themselves, providing
a range of expected performance. However, it is not reasonable to
expect to be able to “time” buying or selling within a
market cycle. Historically a diversified portfolio which is thoughtfully
structured and implemented will provide an investor with a greater
likelihood of better, more stabilized performance through these market
cycles.
Q: Does Wescott
select the individual securities which make up my portfolio?
A: Not directly.
Investment market history teaches us that the most important determinant
in portfolio volatility and performance is how the investments are
allocated. For example, if you select all large company growth stocks
for your portfolio, you will not get the benefit (or detriment) of
small company value stocks, simply since you are not invested in that
area of the market. Therefore, the most important decision is the
allocation of your portfolio to bonds, real estate and stocks (be
they large, mid size, small, value, growth, US or Non-US).
Once
the portfolio allocation is determined (in accordance with our model
portfolios) we then choose “managers” who manage one segment
of your portfolio allocation. These managers are not Wescott employees.
They are individuals, men and women, who have had a successful career
in choosing companies for a particular segment of your portfolio,
seeking to achieve a more controlled return which is better than the
benchmark against which they are measured.
Q:
How are income taxes factored into portfolio management?
A: Our heritage
is as tax accountants and attorneys, so we are very sensitive to the
erosion of portfolio returns caused by income taxes.
For
individuals we are vigilant in selecting portfolio investments which
are tax sensitive, and managing every individual client’s portfolio
in a tax sensitive way. Of course, we always remember the most important
objective is to preserve capital, and therefore will at times sell
a security and take the capital gain (or loss) more for investment
efficacy than tax planning.
Institutional
clients such as pensions, foundations, endowments (and IRA’s
for that matter) are tax free (or tax deferred) entities and as such
we manage for the best gross return possible, unconstrained by income
tax considerations.
Q:
How are Investment Portfolios implemented?
A: After
our analysis, an Investment Policy Statement and detailed Implementation
Plan are presented to our client. After client approval, we take care
of all necessary administrative and investment details to ensure the
portfolio is properly invested.
Q:
What is Wescott’s Performance Track Record?
A: Our
Performance Track Record, short term and long term, has well shown
the benefits of diversification, our manager selection
and our rebalancing discipline which is implemented in our Model and
client portfolios.
Our
Model performance information is updated
monthly and provided in each Quarterly Investment Commentary for clients
to compare to their own portfolio. In addition to providing the Commentary
to our clients quarterly, it is available in the Client Library section of this website.
This
information is also provided to prospective clients as part of their
consideration of Wescott.
Q:
How does Wescott charge for services?
A:
Our fees are based upon a percentage of the investment portfolio
size. We receive no compensation from anyone other than directly from
our client.
Q:
What is Wescott’s minimum account size requirement?
A:
Our minimum account size is $2 million in investable assets.
Q:
How do I proceed with considering becoming a Wescott client?
A:
Please contact us by e-mail or phone and we can provide much
more information. We offer each prospective client a no obligation
detailed analysis of their current situation with our recommendations
so that you may see what we can do in your situation before you engage
us.
We try to
make this introductory process as indicative of what you will come
to know as the hallmark of Wescott’s services: warm, thoughtful,
respectful, honest and hard working, yielding excellent results and
stellar client satisfaction.
We are
singularly focused on our mission: to dedicate our skills, values
disciplines and resources to guide our clients in achieving their
goals. We would be proud to share our process and results with you.
©2005- Wescott
Financial Advisory Group LLC | Disclosure
