Roffman Miller Associates Reviews

Overview of Roffman Miller Associates

Roffman Miller was incorporated in 1990 and opened its doors to its first client in July of 1991. Its principal owners are R. Peters Miller, Robert Hofmann, and Paulette Greenwell.

The firm’s primary business is the provision of investment management services.

Its investment strategy is focused on achieving long-term goals and reducing volatility of returns. To meet a client’s investment target, the firm usually adheres to a value-oriented investment selection process utilizing a variety of asset classes and diversification.

The firm typically invests in individual stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Its investment horizons are generally for 3 to 5 years. However, the firm will, under appropriate circumstances, engage in short-term purchases (holding for less than a year) or trading (intra-month).

The firm accepts clients that hold legacy positions or certain self-directed securities.

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What We Like About Roffman Miller Associates

1. Roffman Miller is fee-only; being fee-only means that Roffman Miller is independent. The firm’s fees are calculated as a percentage of the assets it manages and are not derived from commissions from the sale of financial products to clients nor compensation based on recommending a particular course of action to clients. A fee-only advisor is also under a fiduciary duty to his/her client and must always place a client’s interest before his/her own.

2. Roffman Miller is focused on alpha: The firm’s primary business is investment management. ALL of its wealth management professionals – nine in total – sit on the investment committee. In Modern Portfolio Theory, there is a defined relationship between risk and returns. Usually, the expected return of an investment can be increased by taking on more risk. In a sense, returns are “paid for” by risk. Alpha is the excess return of the investment (i.e., the return over and above what might be expected from the investment’s risk profile). Roffman Miller is, in reality, a money management firm that also offers financial planning services.

3. Account Protection: Roffman Miller does not have custody of its clients’ cash or securities. The firm mainly uses Charles Schwab & Co. as its broker/dealer of choice and as a custodian. It takes great pains to explain the inherent conflicts of interest. For example, the firm receives certain support services from Charles Schwab & Co., such as the custodian service, if it maintains at least $10 million in accounts at Schwab.

4. Roffman Miller informs and educates: The firm publishes a quarterly newsletter called Outlook, the archives of which are available at Client Correspondence. It is also one of the few wealth management firms to provide its SEC-mandated brochure on its website.

5. Roffman Miller does not charge performance-based fees nor engage in side-by-side management. Fees are computed on total assets under management (AUM) and not on a share of capital gains or capital appreciation of a client’s assets.

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Roffman Miller Associates Review – Services

The firm’s services fall under four heads: (i) financial planning, (ii) portfolio management, (iii) selection of other advisors, and (iv) educational seminars and workshops.

The firm’s portfolio management services are undertaken in the following areas: common stock management, fixed income management, mutual fund management, and equity research. Common stock management is based on two pillars which are sell discipline and diversification approaches.

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A security is considered for sale when its price reaches a level which indicates that further price appreciation is limited, the fundamental reasons for owning the stock have changed or the individual stock is greater than 10% of the stock portfolio.

Diversification follows two guidelines: (i) invest up to five percent initially in one stock or ten percent in one industry and (ii) maintain equity accounts that have between twenty and thirty-five stocks.

Fixed income management is designed to provide predictability, offer stability, and meet a client’s need for income.

The firm’s fixed income investments are restricted U.S. government obligations, U.S. government agencies, investment-grade corporate bonds, and tax-free municipal bonds.

Roffman Miller mutual fund management allows the firm’s clients to access some funds that are closed to the public but open to institutional investors. The firm will utilize some loaded mutual funds; however, the loads are waived to the clients of Roffman Miller. The firm usually seeks mutual funds with low turnover and low expenses and those that have performed well in both bull and bear markets.

The mutual fund managers that are selected generally operate in a specific market capitalization: large cap, mid cap, small cap or international.

Roffman Miller provides company research. The firm “understands the importance of going out and ‘kicking the tires.’ ”

The firm’s research focuses on (i) identifying quality companies with a superior management team, clear plan for success, proven track record, and focus on increasing shareholder value over the long term; (ii) recognizing companies with favorable valuations based on financial measures such as profits, book value, and cash flow; (iii) identifying industry leaders with a competitive advantage in size, price, geography or high barriers to entry; and (iv) selecting companies that not only have financial strength in solid sales, earnings, and appropriate levels of debt but also those which can persevere and take advantage of opportunities that occur in difficult economic environments.

Although the firm currently manages all client funds directly, it has, in the past, used sub-advisors or separately managed accounts such as the Charles Schwab Managed Account Platform. Separately managed accounts allow an investment manager to employ other managers with a different approach. The firm reiterates, however, that even when this is done, it exercises supervision and retains responsibility for ensuring a client’s investment plan is followed.

Roffman Miller Associates Address Information

1835 Market Street, Suite 500, Philadelphia, PA 19103

Tel: 215-981-1030

To Contact Roffman Miller Associates

Contact page: http://www.roffmanmiller.com/contactus.asp

E-mail: [email protected]

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