All security holdings are reviewed on a continuous basis. Every portfolio is reviewed at least monthly. More frequent reviews may be necessary due to changing market conditions, withdrawals, or additions to capital, change in the outlook of a security, the need to invest idle cash, or circumstantial changes in the investment objectives of the client.
As a small firm, we are not encumbered by the slow flow of information inherent in many larger investment firms. Our investment decisions are not timed according to committee or "morning meeting" scheduling. As a result, we are able to more effectively react to changing market conditions in an effort to better serve our clients.
Monthly or quarterly statements are provided for each and every account showing portfolio market values, transaction activity within the account, and dividends and interest received. Annual statements provide the client with total dividends, interest, and proceeds from sales that were collected during the year. Beaton Management also maintains in-house transaction records to provide individualized accounting of real gains and losses for our clients' convenience during tax season.
Beaton Management does not physically custody client securities. Therefore, we recommend that our clients maintain a brokerage account specifically for that purpose. Traditionally, we select a broker who can service the account to meet our standards, but our clients are free to choose any broker they desire. Securities held at a brokerage firm are insured by the Securities Investors Protection Corporation (SPIC) and most brokerage firms also insure their money market funds in each account. Brokers are recommended on the basis of services provided on behalf of our clients, such as online access to your accounts, account check-writing privileges and security research availability. Commissions are negotiated with the brokers so that our clients can benefit from brokerage firm services at a discounted fee. Research services available through any of the brokerage firms we utilize are shared with all of our clients in order to provide them with the most current, in-depth information.
Beaton Management Company primarily invests in equity securities, US Treasury and other obligations of the US Government, as well as municipal and corporate debt securities. As directed by our clients, we also invest in ETFs, SPDRs, and other indexing funds. We also research and advise our clients on numerous mutual fund companies. As we are not affiliated with any other firms in the brokerage, insurance, or banking industries, our mutual fund service can be tailored specifically to a client's individual need rather than a particular fund family. Use of conservative option strategies are made only upon written instructions from the client.
Our investment strategy is tailored to the particular goals and objectives of each client. Primary emphasis is placed upon fundamental analysis and supported by both technical and quantitative analysis.