Why a Fiduciary Matters
Who’s Looking Out for You?
The investing world is filled with complicated phrases and obscure terminology. For example, you may have noticed that AFAM Capital is referred to as a “fiduciary.” But what does that mean? In March 2013, the Securities and Exchange Commission offered the following:
Unlike the laws of many other countries, the U.S. federal securities laws do not prescribe minimum experience or qualification requirements for persons providing investment advice. They do not establish maximum fees that advisers may charge. Nor do they preclude advisers from having substantial conflicts of interest that might adversely affect the objectivity of the advice they provide. Rather, investors have the responsibility, based on disclosure they receive, for selecting their own advisers, negotiating their own fee arrangements, and evaluating their advisers’ conflicts.”
Our goal at AFAM Capital is to raise the bar and treat our clients as we would like to be treated.
What it means at AFAM Capital
The word fiduciary in the dictionary is defined as a person to whom property or power is entrusted for the benefit of another. What does being a fiduciary mean to us?
- It means we avoid or disclose conflicts of interest
- It means we don’t get commissions for simply buying or selling a stock
- As a fee-based investment advisor, our interests are aligned with yours
- It means we are clear and transparent about how we get paid
- It means we learn from decades of experience
- It means we are focused on you
Focused on Outcomes
Our goal is clear. We want to grow your portfolio to its maximum value over time. First, we understand your investment goals. Then we match your needs with different investment options generated by our Investment Team. (Yes, a team guides your investments. Not one individual’s personal opinion.)
Past performance is not indicative of future returns, and AFAM does not represent that either the company or its products guarantee a positive outcome with respect to the statements above.