How do I know if I need professional wealth and money management?
You may want to consider hiring a professional money manager if you do not have the time, interest or knowledge to manage your portfolio. We know that your pool of assets represents years of hard work and savings by you or someone you love. We would be honored if you chose us to manage those assets for you and ease your burden of having to worry about whether you are making smart financial decisions. We will ensure that your money is being managed prudently for the long-term and that there will be wealth to pass on to future generations. We can also help guide you through the tax, insurance, and estate planning implications of your wealth.

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Who are your clients?
Our clients are predominantly high net-worth individuals focused on wealth preservation and wealth enhancement. We also manage assets for institutions, endowments, pensions, trusts, retirement accounts and foundations.

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Is my portfolio large enough to be a PacWest Financial Management Inc. client?
Our current account minimum is $500,000 in cash or marketable securities. For accounts with less than $500,000 in assets, the annual minimum fee of $5,500 will apply.

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Do I fit the profile of your ideal client?
Our ideal client is long-term in focus. The client knows that it will take time to reach their financial goals and objectives. (He/she understands the nature of the financial markets and the characteristics of the various asset classes. The ideal client tends to be a saver rather than a spender.) He/she has decided to give up day-to-day control of their portfolio and turn that over to professionals. We have trusting relationships with our clients that were built from serving them well by always putting their interests first. In return, we have gained their appreciation and their respect.

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What is it like to work with PacWest Financial Management Inc.?
You can expect to work closely with us. During our first couple meetings, we will ask for your input in order to help us construct a suitable portfolio and financial plan for you. We will ask you to fill out a detailed questionnaire that will gather information on your financial positions, investment objective, risk tolerance and time horizon. Based on this information, we will create an investment plan with recommended asset allocations and securities selections and invite you back to review and approve your personalized plan. Then, we will start managing your accounts on your behalf.

If you already have a portfolio, we will evaluate what you have and create a personalized plan to improve your portfolio. We will recommend, and upon your approval, execute specific investment actions to improve your financial position. These may include slowly diversifying out of a concentrated position in one stock, selling underperforming mutual funds, buying tax-advantaged bonds, or adjusting cash reserves.

Trusting your investment advisor is a very important part of this relationship. We will earn your trust by providing the appropriate level of service, exercising care in managing your assets and being sure to communicate frequently.

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What services does PacWest Financial Management Inc. offer?
We are a fee based investment advisory firm. We do not sell any products nor do we receive any commissions for investments we put into our clients' portfolios. This allows us to focus solely on providing unbiased advice that is in the best interest of our clients.

You are paying our firm to be your personal money manager, to research investment ideas, structure your portfolios, monitor your investments, update you on how your portfolios are performing and to make adjustments on an as needed basis. In short, we worry about your money so you don't have to.

We also act as your overall financial coordinator and take an interest in all matters that affect the financial health of you and your family. We are prepared to give you input on issues regarding basic retirement, estate and tax planning. In situations where additional technical help is necessary, we can recommend trusted advisors to help you.

Portfolio accounting, administration and informational tax reporting are included at no additional charge.

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What are your fees?
Generally, PacWest charges clients an asset-based fee ranging between 0.60% and 1.50% depending on the scope of the services to be provided and the complexity of the client’s financial situation. The annual fees for portfolio management services are billed quarterly in arrears based on the market value of the assets on the last day of the quarter, and may be adjusted for deposits and withdrawals into, or out of, the account during the quarter. Fees will be assessed pro rata in the event the portfolio management agreement is executed at any time other than the first day of a calendar quarter. The Arizona and California offices operate independently when maintaining their respective schedules of fees.

Arizona Annual Fee Schedule
The management fee for our investment advisory services and basic financial planning is based on the following formula:

• 1.15% on the first $1,000,000
• 0.9% on the second $1,000,000
• 0.7% on the third $1,000,000
• 0.6% on the fourth $1,000,000 & thereafter
• Annual Fee Minimum: $5,500
• Extraordinary services may be provided at a mutually agreed upon fee.  Examples of extraordinary services may include the following:  comprehensive financial planning, distribution of assets upon divorce or death of account holder, obtaining or recreating cost basis when information is not readily available.
• Management fees are paid in arrears on a quarterly basis.

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What are your language capabilities besides English?
Besides English, we have advisors with language capabilities in all major Chinese dialects: Mandarin, Cantonese and Shanghainese.

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How do you select investments?
Each portfolio can include stocks, bonds and mutual funds. In order to choose our investments, we perform in-house research, use valuation models, stay abreast of company-specific and industry-specific news and trends, and review reports from outside analysts.

From a database of 6600 stocks, we narrow the list down to approximately 150 names. Then we group these stocks into 10 economic sectors and choose about 45 companies that have demonstrated strong earnings growth, price momentum and justifiable valuations. We supplement this quantitative research with technical analysis.

If our clients need income or want less volatility in the portfolios, we use government, corporate and municipal bonds to lower the volatility and to generate the cash flow. We search for bonds that have attractive yields relative to their credit ratings, maturities and other criteria. Only bonds that are investment grade are used.

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Is my money safe?
PacWest Financial Management Inc. is not a broker/dealer and is not the custodian on any of our clients' accounts. PacWest does not hold any cash or securities for our clients. All assets and cash are held at outside broker/dealers or at our affiliated trust company with insurance coverage provided by them. The cash transactions are between the client and the custodian.

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How might you change my portfolio over the next ten years?
Once we set the investment objective and the target asset allocation, we will closely follow that discipline and adjust your portfolio when necessary.

However, as the investment environment changes and your personal situation changes, we will suggest shifts in asset allocations. The economic sectors will also make up different percentages in your stock portfolio during various phases of the economic cycle.

When there are significant changes in tax law that affect investors, we will adjust the portfolios accordingly.

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