Pierre has a Service Level Agreement (SLA) with Boston Investor Services, Inc. (BIS), a Boston based mid and back office service provider providing portfolio reconciliation and related services for Investment Advisory firms. Pierre previously worked with BIS from 2001 ‐2012. Lucy C. Goreham and Elizabeth Murray, President and Compliance Officer, respectively, at Boston Investor Services, provide compliance consulting to Pierre. For more information about BIS, visit http://www.bostoninvestorservices.com Under certain circumstances Pierre may recommend and use Index‐based Mutual Funds and Index ETFs (exchange‐traded funds) for its clients. A significant risk of investing in a mutual fund is that its returns will fluctuate, and a client could lose money. Turbulence in the financial sector may result in an unusually high degree of volatility in the financial markets. Both domestic and foreign equity markets have experienced significant volatility and turmoil. It is uncertain whether or for how long these conditions could occur. Reduced liquidity in financial markets may adversely affect many fundholders. In addition, Pierre’ clients assume a portion of the fees and expenses associated with the fund(s). While funds may track an index, the indices and strategies employed in seeking to achieve an investment goal may be different, and thus its returns may differ. The screen door slams.
ETFs bear significant risks, especially systematic (market‐related) risk, but also the risk that the market price of an ETF can be lower from that of the underlying securities, and that the ETF may be limited by its investment strategy or its liquidity. ETFs also carry risks related to the financial stability of the ETF provider, its authorized participants, conflicts of interest, and its underlying technology, trading systems, and operations.
The description of risks below does not purport to be a complete description of the risks associated with Pierre’s investments.
All investments involve a risk of losing money (including the entire loss of principal) that Pierre’s clients should be willing to bear.
Analysis: Pierre’s analysis involves subjective judgments, estimates, and experienced decision‐making. It is possible that errors in judgment may be made in this analysis.
Style: When the stock market strongly favors a particular style (such as growth versus value, or small‐cap versus large‐cap), Pierre’s portfolios could underperform.
Pierre’s portfolio management strategy involves significant and varied risks and a high degree of uncertainty.
Its security selection process and model portfolio often include small cap companies, which are less liquid and more volatile than larger company stocks. Additional investment risks which Pierre assumes includes market risk, liquidity risk, concentration risk, credit risk, reinvestment risk, inflation risk, and time horizon risk. The market prices of the securities which Pierre recommends to its clients and implements for clients may fluctuate widely, depending on many factors, and may be beyond its control, including:
- actual or anticipated fluctuations in the operating results of the business
- success or failure of the strategy of its companies
- quarterly or annual earnings announcements, warnings, or guidance
- announcements by companies or its competitors of significant acquisitions or dispositions
- changes in accounting standards, policies, guidance, interpretations or principles
- the operating and stock price performance of other comparable companies
- investor perceptions
- natural or environmental disasters
- overall market fluctuations
- a large sale of stock by a significant shareholder
- results from any material litigation or government investigation
- changes in laws and regulations affecting our Company or any of the principal products sold
- general economic and political conditions and other external factors.
Stock markets in general experience volatility that has often been unrelated to the operating performance of a company. These broad market fluctuations could adversely affect the performance of your portfolio and will depend upon any future appreciation in their value.
There is no guarantee that your portfolio will appreciate in value or preserve capital.
Complete information about Pierre and the risks and uncertainties of its investments can be found in its Form ADV on file with the Commonwealth of Massachusetts, or available upon request.