Frequently Asked Questions

Q: What is your mission?

A: Pure wants to change the way people invest. The incentives of investment management firms and clients are far too misaligned. By increasing accountability, transparency, and challenging advisors that work against their clients we can raise the professional standards.

Q: Why do you link fees with client outcomes?

A: We want to be accountable for our investment results.

 

We feel strongly that a fee structure should encourage prudent portfolio management rather than gathering assets.

Q: Why did you go independent?

A: Publicly traded investment managers have a duty to maximize profit for shareholders and themselves.

 

Pure Portfolios has a duty to clients. We like to say people over profits.

Q: What are the benefits of being independent from an investment standpoint?

A: We can focus what’s important, managing portfolios, improving our investment process, and educating our investors.

Q: Who does your investment research?

A: Pure has partnered with Charles Schwab and LCG Associates to provide investment research. Schwab, LCG, and Pure can be thought of as co-chief investment officers that shape our capital market expectations.

Q: Do you offer financial planning?

A: Pure Portfolios has partnered with MoneyGuidePro, a leader in financial planning software, to build custom planning solutions for our clients.  Financial planning ensures we are building proper investment portfolios to meet our clients' desired outcomes.

Q: Why don't you use mutual funds?

A: High fees, tax inefficiency, poor performance, insufficient metrics for choosing highly skilled managers, outperformance is random and attributable to luck rather than skill, more challenging investment environment for stock pickers. The mutual fund industry is at risk of being obsolete within 10 years without major reforms.

Q: How often do you meet with clients?

A: Pure can meet or speak as often as needed. We will set a customized schedule with your preferred method of communication when you join the Pure Community. Clients can reach us via e-mail, phone, text, video conferencing, online chat, or face to face.

Q: What is an Exchange Traded Fund (ETF)?

A: An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and sold. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.

Source: Investopedia

Q: What is Pure Portfolios' position on the Fiduciary Rule?

A: There needs to be clearer distinction between financial advisors and salespeople. Raise the barriers of entry & require stringent continual education (follow United Kingdom's lead). Adopt the CFA Code of Ethics. Exile offenders for life.

Q: Is Pure Portfolios a fiduciary?

A: Pure adheres to the fiduciary standard. We also actively promote the CFA Code of Ethics and Statement of Investor Rights. Not only does Pure put clients first, we aim to expose advisors that work against client interests.

Q: Do you manage Nonprofits, Foundations, or Charitable Trusts?

A: Pure Portfolios manages assets for Private and Public Foundations, Charitable Trusts and Nonprofit Organizations. We provide a 20% “Social Good” fee discount for these clients, with an aim to collectively make a positive impact around their social and environmental interests. In addition to investment management and planning, we also advise on organizational structure, process and governance.

Q: How are most advisors incentivized?

A: We believe incentives drive human behavior. Many advisors, financial planners, and investment managers focus on asset gathering or selling products. This is a gross misalignment of incentives with clients. Why would you hire someone that is out chasing the next deal?

Q: What are other common conflicts of interest when working with an advisor?

A:

No accountability for investment results (receive full fee if they do a great job or poor job on the investment management).

 

Compensation arrangements that encourage a culture of sales.

 

Misrepresentation of fiduciary duty.

 

Lack of transparency around the ‘all-in’ cost of investing (account fee + mutual fund expense ratios + sales loads/commissions).

 

Conflicted recommendations under the guise of “financial planning”

Q: How will my information be used?

A: Your information will be used for compliance documentation and to build the proper investment portfolio.

 

Pure does not sell client data.

Q: How are fees taken?

A: Fees are taken quarterly in arrears.

Q: How robust is your online security platform?

A: Charles Schwab is the largest custodian for Registered Investment Advisors in the United States. They take client security and confidentiality very seriously. You can read more about the Charles Schwab website security pledge here.