An individual in whom another has placed the utmost trust and confidence to manage and protect property or money. The relationship wherein one person has an obligation to act for another's benefit.
PGAM vs. Other Investment Vehicles
✔ Single fee
Only the PGAM management fee and $4.95 per trade execution cost to the custodian
✔ Positive tax implications
Completely controlled buying and selling of individual positions can create a tax benefit
✔ Full transparency
Clients see each individual position, transactions, and all costs associated with the portfolio
✔ Strategic yet tactical
We do not trade to just make moves, but because of our size we can be very nimble when a move is necessary
Other Investment Vehicles
× Double dip fees
Funds have their own fees and when you add advisory fees, costs can become expensive. Total Estimated Advisory & Fund Fee of large institutions: 1.77%**
× Negative tax implications
Inability to control capital gains with the way funds are structured, you could even have gains in a year the fund declines in value!
× Limited transparency
Investors see only the fund symbol and do not know what they are really holding
Trading in a fund is a very bureaucratic process. The fund team can be slow to react to market changes.
**Personal Capital, "The Real Cost of Fees"
Solution: PGAM Separately Managed Account (SMA)
Our typical client owns 30-40 stocks
We trade securities strategically. There are plenty of holdings to diversify risk, but large enough positions where winners will boost performance.
A separately managed account is a private portfolio of actively managed, individual securities. This allows each client to closely monitor the portfolio’s progress and evaluate their individual positions and asset allocations.
The investment committee at Princeton Global Asset Management is comprised of former institutional portfolio managers and analysts. This expertise is now available through our boutique approach of workingwith select individual clients.
Tax flexibility is enhanced through gain/loss harvesting which can potentially reduce the tax impact of the portfolio. Gifting low cost positions from a separately managed account can further reduce this burden.
Controlling Fees is Part of our Fiduciary Obligation
Save more than $1,000,000 by moving away from high fees of big firms
If you are 40 years old, have saved $500,000, and are actively contributing $25,000 annually to savings. By the time you turn 70, you would have given away $1,061,796.58 over the 30 years had you been paying 2% fee versus a 1% fee (assuming a 7% return rate).
That's money you earned and can keep with a PGAM SMA portfolio