Glossary of Terms

Fiduciary: A fiduciary is a person or company that is legally appointed and authorized to act in the best interest of their clients. This duty extends in all aspects of conduct, from investing wisely to safeguarding private information. RIAs must put their clients interests in front of their own. This is a key difference between the independent RIA community and the traditional Broker/Dealers (BDs). BDs are only obligated to provide suitable investments, but those may not always be the best.

Discretionary: Discretionary is a type of authority that allows us to buy and sell securities without client consent. However, as a fiduciary, RIAs are required to buy and sell securities that are in your best interest, and that are in line with your risk tolerance, objectives, and needs. At Jamestown, we receive a limited discretionary authority on client accounts. "Limited" means we cannot add or move money from the account without your consent.

Custodian: A custodian is a bank or financial institution that holds onto the client's investment assets. As independent RIAs, Jamestown works closely with many custodians to provide safety and security for our clients.

Active Management: Active management is an investment philosophy that believes that through using key market technical indicators, decisions can be made on a daily basis as to where to best allocate your money. This requires a disciplined set of rules, procedures, and dedication to execute correctly. While active management is not always the best method of investing, at times it can prove far superior to the traditional buy-and-hold approach.

Registered Investment Advisor (RIA): RIA is a legal term for investment advisors that are registered either with a state division of securities or with the Securities and Exchange Commission (SEC). RIAs have a fiduciary responsibility to its clients.