MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, April 23, 1999 James Bruyette -- Sullivan, Bruyette, Speros & Blayney James Bruyette, CPA, CFP, of Sullivan, Bruyette, Speros & Blayney, is a veteran of Worth magazine's list of the country's top financial advisors. With staff of 21, Bruyette's McLean, Virginia firm handles financial planning and portfolio management for 450 clients with $500 million in assets on a fee basis. The firm invests 80% of its client's assets in mutual funds and 20% in stocks. Bruyette buys only large-cap stocks; his clients' small-cap and international money is in mutual funds. Charles Schwab serves as the primary custodian.
With a three year return of 32.5%, 29.5% over five years and 21.8% a year since inception in December 1987, it's easy to see how Harbor Capital Appreciation, which is consistently ranked in the top 20% of its Lipper peer group, caught Bruyette's attention. Year-to-date, the fund is up 12.3%. Other performance related characteristics on Bruyette's must-have list are low expenses and good tax-adjusted returns. The fund's expense ratio is .68 basis points and its turnover is 70%. Style consistency is also important to Bruyette. "We want managers with a disciplined philosophy that they pursue day in and day out," he says. While Bruyette prefers to meet face-to-face with a fund manager, he has not met with Spiros Segalas. Instead, the pair schedule two or three conference calls a year. "Because Harbor has a sub-advisor, they are a little bit less accessible than most of our managers," Bruyette notes. When it comes to marketing support from fund companies, Bruyette is sure of what he wants -- current portfolio information. "We want to know where the managers are looking, what sectors they find attractive, their overall view of the market and what they are holding," he says. While Bruyette appreciates getting fund information quarterly, he says once a month is even better. "We value the opportunity to get an inside, updated, current story on the philosophy of the fund. Any information the fund companies can provide in between the couple times a year we meet face-to-face or have conference calls is great," he says. Detailed information enables Bruyette to use funds most appropriately and to "personalize" the funds for his clients. He says the fact that clients do not become as attached to mutual funds as they do to stocks is a problem advisors must overcome. "Clients don't get attached to funds as easily as they get attached to individual stocks," he explains. "Take Harbor Capital Appreciation -- its two largest holdings are MCI Worldcom and Microsoft. If I owned those two stocks, I'd read about them and I'd know something about the management of the companies. Accordingly, those stocks would mean something to me. In contrast, without fund information, Harbor Appreciation would be just a name." To ensure that the funds in their portfolios are more than names on a quarterly report, Bruyette uses information from the fund companies, as well as articles culled from his own reading, to educate clients about their mutual funds. "We want our clients to know about the people behind the funds -- about the managers' philosophy and how they go about making decisions," concludes Bruyette. "We also want our clients to be familiar with the funds' individual holdings. More information enables our clients to feel more of a connection with the funds." Printed from: MFWire.com/story.asp?s=24792 Copyright 1999, InvestmentWires, Inc. All Rights Reserved | ||||||||||||