Pure Portfolios is gaining attention for its disruptive business model that ties fees to client outcomes. Financial Advisor Magazine ran a national feature on Pure Portfolios in the November issue (see the story here). FA Magazine did a great job of capturing the essence of our fee structure and firm values. Les Abromovitz is a highly respected regulatory expert in the Registered Investment Advisor space. It’s great to see a person of his stature comment on our downside fee protection.
The safeguards we have put in the place strongly deter the incentive to take excessive risk to meet or exceed a hurdle rate. Our trading activity and client holdings are available 24/7 via Pureportfolios.com and our mobile app. All of our portfolios are assigned a ‘Risk Score’ through our partners at Riskalyze. The system would alert us if the client was out of compliance or invested incorrectly. In addition, all of our clients have investment objectives that dictate the asset allocation ranges of the portfolio (+/- 5% of the target allocation).
The performance calculation for client portfolios is administered by Charles Schwab (custodian of client assets) & Orion Advisor Services (portfolio accounting). Pure Portfolios has zero role in performance calculations nor can we manually manipulate the numbers. However, we do offer net of fee performance through Orion via the Pure Portfolios client portal & smartphone app. Allowing clients access to real-time, net of fee performance is very rare within the investment management industry. We believe in being fully transparent so clients can easily measure if we are doing what they hired us to do…maximize their wealth, net of fees & taxes.
Pure Portfolios adheres to a fiduciary standard. Our duty is to our clients and we act in their best interests at all times. Pure Portfolios takes this responsibility beyond a traditional RIA. We have adopted the CFA Code of Ethics which guides our professional conduct (view the Code here). Pure advocates for investor rights through social media and aims to shame & expose those that bring a reputation of mistrust within wealth management.