Today’s investors have more choices than ever for managing their investments—including doing it themselves. In the internet age, access to extensive information and sophisticated tools can make everyone feel like an expert.
But not everyone really is an expert.
We are fiduciaries, which makes us different from other investment managers. That status does not make us infallible, nor does it come with a crystal ball for seeing into the future. But it does mean these things:
- We are subject to special legal duties of fidelity and loyalty to our clients. When it comes to trust management, we are required by law to put the interests of trust beneficiaries ahead of our own;
- Trust assets must, by law, be kept separate from the bank’s assets;
- We are subject to audit and regulatory supervision;
- Our fees are linked to the size of the accounts that we manage, not to the number of transactions we generate. That means our investment advice can be truly unbiased;
- In managing trust assets, we must take into account the interests of both present and future beneficiaries, which is an unusual investment perspective. This approach is not risk free, but it tends to be risk averse;
- Because investment management is a core part of our business, we are professionally staffed and equipped for the job.
If you would like to learn more about “fiduciary duties,” we will be pleased to meet with you at your convenience.
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