Taylor Investment Services

Client Reports
Frequently Asked Questions

Introduction To Firm

Taylor Investment Services (TIS) is a money management firm providing continuous, personalized management of separate investment portfolios composed primarily of individual stocks. The firm started in 1994 with one outside client and currently manages assets for roughly 65-70 different client accounts comprising numerous sub-accounts for individuals and families. This also includes international clients. TIS uses TD Ameritrade Institutional Services as custodian for most client accounts. All accounts remain in the client's name. The broker generates trading confirmations, monthly statements, and provides a view of all activity on the account on a one day delayed basis through the website www.advisorclient.com. Note: This website contains summary information regarding Taylor Investment Services LLC. For a complete description of the business, please see the company's ADV (available upon request).

TIS offers many compelling advantages for your investment endeavors, including the following:

Flat Fee Schedule

TIS has a $200,000 investment minimum (subject to change) with all assets assessed on a maximum 1% yearly rate. This means that TIS benefits more favorably as your portfolio total increase and thus strives for the best return for your portfolio and reflects a direct financial consequence if your portfolio does well or poorly. As a fee-only money manager, TIS is completely independent.  

Eating My Own Cooking

All client portfolios are designed with Paul Taylor's personal portfolio as the model. While this alignment of interests does not guarantee superior performance, you can be assured that TIS is entirely centered on those results, constantly looking to refine and improve the method used. TIS currently offers three portfolio options: the model, plus, and and specific allocation accounts (though TIS considers these as flexible mandates, regardless of choice). Please refer to the TIS ADV for a more in-depth discussion of these choices.

Candid Performance Reports

In addition to the reports provided by TD Ameritrade Institutional, TIS also provides clients with a performance report showing the return on investment for your individual portfolio. Regardless of how TIS performs, YOU WILL KNOW, and you will be able to identify the areas that are performing well or poorly. For full disclosure, your quarterly reports show after-fee, before-tax return on investment figures for various periods and since inception, and include a running total of TIS's compensation for the quarter and since inception (note: because the latest client quarterly fee is not pre-paid, the investment return reported will not include the impact of this incurred but unpaid fee).

Focus on Individual Stocks

TIS primary focus is on one thing: individual stocks. TIS' time is spent investigating the fundamentals of individual companies and determining their suitability for purchase (though no-load funds, closed end funds, exchange traded funds, and various fixed income investments may appear in client portfolios). TIS has grown primarily from portfolio increases (with the vast majority of TIS' Assets Under Management internally generated), not from the recruitment of new client contributions.

Investment Philosophy

Our investment philosophy is based on the concept that stocks represent shares of a business whose price, over time, will reflect the economic reality of that business. TIS' investment selection is fundamental in nature and favors companies with understandable businesses with strong balance sheets and excess cash flow above and beyond all normal capital expenditures. TIS selections have often been focused on specific industry groups, though stocks from other industries are considered and purchased, including companies domiciled overseas (especially Canada). Please refer to the philosophy and reports section for a more extensive description of TIS' approach.

Summary of TIS Management

TIS offers its services to individuals, trusts, estates, and other charitable organizations, pension and profit sharing plans, and corporations. The following summary describes our management:

Current Minimum Capital Requirement: $200,000

Portfolio Management
* Full discretionary portfolio management of equity accounts
*Detailed quarterly TIS performance reports
*Client Letters on at least a bi-annual basis
Fee Structure
*The TIS fee is based on a flat percentage of total assets under management. With client approval, this fee is usually electronically debited after the quarter is completed (other payment arrangements available). This fee is not pre-paid.
*The maximum yearly fee is 1.0%, assessed on a quarterly basis at the rate of 0.25%. Our current investment minimum is $200,000 (subject to change).
*A client account is opened at TD Ameritrade Institutional Services. This firm acts as custodian. TIS never takes possession of client assets and ready access to funds is always available.
*All activity in the account is visible on a one day delayed basis (some data real-time) through the TD Ameritrade Institutional website.
Function of Broker
*TD Ameritrade Institutional Services generates monthly account statements, trade confirmations, and processes the distribution and receipt of funds.
*Trades are generally executed through block orders to assure equivalent pricing across all portfolios.
* For most stock orders, TD Ameritrade charges $9.95 for either a market order or limit order. TIS does not receive this commission. These expenses are usual and customary. Persons who select investments independently would still have to pay most, if not all, of these brokerage fees.
*Because TIS is compensated by the level of assets in a client's account, TIS has a monetary interest in ensuring that outside charges are kept to a minimum.