FAQs

 

 

FAQs

Describe your team, the year it was founded in its present form, location of its headquarters and all offices that would be part of our service team.

The Moran Edwards Asset Management Group was founded in March of 1990 by Thomas M. Moran, a Managing Director – Investments, and Earl Sistrunk, CFA, Financial Consultant in Naples, FL. The Group now consists of including three principal members and 25 individuals, with a combined experience of more than100 years in the securities industry. The Group has two Portfolio Managers and is headed by Financial Advisors Thomas Moran and Robert Edwards. We are located at 5801 Pelican Bay Blvd, Naples, FL 34108. 

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Please provide details of your team’s assets under management as follows:
a.    What are your total assets under management?
b.    What are the average assets under management per client?
c.    The largest 10 client accounts represent what percentage of your total assets under management?

a. The Moran Edwards Asset Management Group is responsible for $4 billion in assets as of 6/30/18 for families and institutional clients.

b. Our average account size is approximately $305,000. Each account is managed to a specific investment portfolio. The number of investment portfolios each client will hold is determined by household size, account types and investor profiles. The average client has roughly 8 accounts with an average household size of $2.4 million.

c. 4% (Our largest 10 accounts are valued at approx. $112.8 million in assets as of 12/31/2016)

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For a taxable portfolio, what is your team’s income tax mitigation strategy?

Although we are not a tax advisor, we will be glad to work with you, your accountant and tax advisor to help you meet your financial goals. 

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Describe your team’s methodology for determining a clients’ strategic asset allocation. What sets your asset allocation approach apart from most investment advisors?

We believe asset allocation is an important factor in determining the variability of portfolio performance. In our opinion, a diversified portfolio can help smooth your investment ride while aiming to give you a higher likelihood of meeting your objectives.

We believe the most important step in developing a strategic allocation is to determine which asset classes are appropriate for your portfolio, given your risk and return objectives and our group’s Capital Market Assumptions. We also suggest reasonable constraints in order to help ensure that the portfolio is well diversified. We can then create model blends of those asset classes in order to help determine a suitable allocation; that is, the portfolio that we believe would be most likely to offer the best return with the lowest risk in order to meet your goals.

Strategic allocations are determined based on a number of factors including correlation, standard deviation1, alpha2 and macroeconomic considerations. In our opinion, having direct management capabilities over a number of asset classes and investment styles may allow better portfolio oversight and aims to maximize tactical allocation decisions.

Portfolio allocations are managed on both a strategic and tactical basis under strict overall allocation guidelines within each asset class and market cycle.

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Does your team’s lean heavily on strategic or tactical asset allocation for major asset classes throughout market cycles? Does your approach differ for sub-asset classes?

Portfolio allocations are managed on both a strategic and tactical basis under strict overall allocation guidelines within each asset class and market cycle.

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Please describe the use of cash in your portfolio strategy. Is cash used solely as a liquidity reserve or do you actively switch to cash in adverse market conditions?

A small allocation to cash and cash alternatives can be kept in the portfolio as a liquidity reserve.

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Discuss the use of leverage in your portfolio strategy.

The portfolio strategy does not, and will never, use leverage.

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If appropriate, describe your team’s process for determining tactical class adjustments throughout market cycles.

Tactical adjustments to the portfolio are made based on a combination of quantitative and qualitative variables. We use both historical valuation models and a macroeconomic overlay which employs statistically significant variables to determine areas of concern and potential opportunities for reallocation.

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Describe the internal structure and organization of your team’s research department.

Within the Moran Edwards Asset Management Group, research is conducted by a team of analysts headed by Earl Sistrunk, CFA - Senior Vice President/Investment Officer and with support provided by Christina Shaw, CIPM – Financial Consultant and Chelsea Ganey, CFA – Financial Consultant.

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Describe the manner in which external resources and sources of information are used in the research process. How does your firm integrate internal and external research?

The Moran Edwards Group currently utilizes a variety of variables and research firms to arrive at its recommendations. Our processes are designed to benefit clients by bringing together our collective experience in diverse markets, such as macro strategy, international strategy, equities (large-, mid- and small-capitalization), closed-end funds/exchange-traded tracking products (CEFs/ETPs), fixed income securities (investment-grade, high-yield and municipal securities) and market analysis.

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Do client portfolios with the same objectives look significantly similar in holdings? If not, what contributes to their differences?

Clients with the same portfolio objective will look similar in holdings. If there are differences it is typically due to either significant additions or withdrawals of cash or client imposed restrictions which could affect the account’s ability to receive certain trades.

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Describe a sample report that addresses your team’s standard reporting of returns, volatility and risk adjusted metrics. The purpose of this document is not to measure prior performance, but rather to analyze your current reporting metrics for clients.

Performance reports for advisory program clients include comprehensive quarterly reporting, displaying both time-weighted and dollar-weighted returns.  Reporting is provided on an individual account level and well as on a consolidated basis.  The report consists of market commentary, executive summary, asset allocation, investment growth, performance data and glossary. Performance reports are presented in color and compare the manager or manager blend to benchmarks assigned to each account.  Charts and graphs include data on account growth from inception and at quarter, YTD, 1, 3, 5, and 10 year periods.  You have numerous options on the level of detail you wish to see on the quarterly reports.

Optional graphs can be included that include metrics such as Alpha, Beta, Sharpe ratio, and Treynor ratio.

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How would you structure custody of assets?

Custody services are provided through Wells Fargo Clearing Services, LLC (WFCS). WFCS provides safekeeping services and comprehensive accounting of all transaction activity and securities holdings.

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Describe the investment-related education provided to your clients. How would you keep the client advised of emerging issues, new asset classes, regulatory controls, etc.?

Investing with Moran Edwards Asset Management Group involves an ongoing dialogue to review your portfolio, assess new investment opportunities and reevaluate your strategy as market conditions or your objectives change.  Moran Edwards primarily keeps clients up to date on emerging issues through personal portfolio reviews.  The firm also frequently offers client luncheons and seminars on relevant market topics for clients to attend.  Lastly, we are always available through phone, email or meeting to answer any questions the client may have about their portfolio or the market.

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What do you believe sets your team’s services apart from other investment advisors and what unique value-added services could your firm provide?

We believe in long-term relationships and strive to earn your continued trust. A great reputation must be earned and, once earned, can be relied upon by your family for generations. This is not a commitment we take lightly. Doing the right thing is the center of our investment philosophy. Our clients enjoy the personal attention that is the hallmark of Moran Edwards Asset Management Group. We maintain long-term relationships with affluent clients who typically have portfolios of $1 million or more of investable assets. Investing with Moran Edwards Asset Management Group involves an ongoing dialogue to review your portfolio, assess new investment opportunities and reevaluate your strategy as market conditions or your objectives change.

We are performance driven and have been frequently recognized by Lipper’s MarketPlace Best Money Managers list for a number of our investment strategies.

Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

Wells Fargo Advisors does not provide tax or legal advice.

As each Private Investment Management (PIM®) program account is individually managed, construction and ongoing management of portfolios may vary from those discussed. Past performance is not indicative of future results, and there is no assurance that any investment strategy will be successful.

Investments and investment strategies contained herein are provided for informational purposes only. We would need to review your individual situation before recommending appropriate strategies to you. All investing involves risk, including the possible loss of principal. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments.

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