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1. What is your background?
Talbot Capital Management, Inc. (TCM) is a Registered Investment Adviser, formed in 1989 to offer investment management services on a fee-only basis.
George B. Talbot, Jr. is the sole investment professional. He is a Chartered Financial Analyst. His employment history is:
1967-1973 Dabbs Sullivan, Trulock & Co. – Little Rock
1973-1974 Stephens Inc. – Little Rock
1974-1989 Simmons First National Bank Trust Department
1989-Present Talbot Capital Management, Inc.
As an independent investment adviser, TCM neither represents nor is affiliated with any other organization. There are no commitments or obligations to direct business to any particular company or individual, and there are no “in-house” funds or investment products to sell.
2. What services will TCM provide?
TCM provides portfolio management and investment counseling services. An individualized portfolio of securities and/or mutual funds is supervised and managed for each client to achieve an investment objective. You may instruct TCM to manage your money with a predetermined, but mutually agreed-upon, objective, or you may request the advice and counsel of TCM in establishing a realistic investment plan to meet your needs.
3. How will TCM help me?
TCM will meet with you to discuss your expectations and investment objectives, and to offer experience and objectivity in the assessment of investment opportunities and investment planning. TCM will manage your money, implement plans, meet with you to review your investments and provide regular written reports.
4. What kinds of clients does TCM serve?
TCM offers investment management services to individuals (including IRA accounts), pension and profit-sharing plans, trusts, estates, foundations and endowment funds.
5. What types of investments does the firm manage?
Stocks, mutual funds, corporate bonds, tax-free bonds and U. S. Government securities are managed. TCM does not generally manage options, futures contracts, insurance-related investments or interests in limited partnerships.
6. How much does this cost?
TCM is a fee-only adviser. The fee is a percentage of the value of the assets managed.
The annual fee is 0.8 percent of the account value up to and including $1,000,000 and 0.4 percent for that amount over $1,000,000. Fees are charged quarterly in advance, based on the previous quarter’s ending portfolio value.
TCM’s income rises or falls in direct proportion to the value of assets under management. Adviser and client objectives, therefore, are in harmony: to maintain and enhance portfolio values.
7. What is TCM’s investment philosophy?
We believe that investment securities are efficiently priced by the market. Long-term investment success comes from (1) good diversification, (2) discipline in sticking to a plan through good times and bad, and, (3) minimizing costs and fees wherever possible.
Our equity investment strategy is to structure a foundation for the portfolio using asset-class, low cost mutual funds. “Asset-class” simply means a mutual fund dedicated to a particular class of securities, such as small-capitalization domestic stocks or large-capitalization international value stocks. The goal is to assure broad, pure diversification. This foundation should make up the largest part, if not all, of the equity share of the portfolio.
Bond investments are generally limited to short-term fixed-income mutual funds, government notes, high-grade corporate bonds and/or high-grade tax-free debt securities. Maturities are generally maintained in the intermediate time period of two to five years.
8. How is an account set up?
An investment advisory agreement is signed with TCM and a custody account is opened at a brokerage firm or bank in your name authorizing TCM to implement transactions on your behalf. Trade confirmations, monthly and annual statements are prepared by the custodian and mailed to you directly with copies to TCM. TCM provides quarterly reports.
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