QUARTERLY NEWSLETTER | Q3 2023 | ISSUE 15
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A Note From the President
It sure hasn’t felt like October yet, but as a parent with children in school, I enjoy the return to routine that autumn brings. It’s hard to believe that it has already been a year since we were welcoming clients and friends to an open house to celebrate our move to a new office.
At Penobscot we have been busy working on a transition to new reporting software. By the end of the year, you will begin to see new statements from us. They won’t be dramatically different, but you will notice some improvements. Perhaps the most notable improvement, is with our portal. For those of you who access your statements that way – and we encourage everyone to take advantage of our online portal – you will see a much simpler, more intuitive interface. If you would like to learn more about viewing your account on our portal, please reach out to our client service team or your portfolio manager.
Finally, we were thrilled to have Colleen MacPherson, CFA featured in Fortune and Entrepreneur magazines this summer discussing her passion, not just for investing but also mentoring other women in finance. Take a moment to read the article below.
Warm Regards,
Dan
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2023-Third Quarter Review
Successful investment to meet long term goals requires a combination of patience, self-discipline, research, and a steadfast focus on the long-term prospects for the companies represented in a managed portfolio.
This is somewhat contrary to human nature, where we are relentlessly confronted with disturbing news, whether it pertains to politics, world events, national events (like the auto workers' strike) or the economy. All this news is presented in real time, thanks to our own cherished personal devices. Under this scenario, it is not surprising that a series of recent polls point to widespread confusion and anxiety about our financial and emotional well-being
These short term, negative emotions, if unchecked, can easily intrude upon the rational commitment necessary to maintain a long-term investment portfolio- with serious consequences.
At Penobscot, we strive to discount or ignore what we sometimes refer to as "the disaster du jour" and stay focused on the long term. We know from experience that once a crisis passes it is quickly forgotten, and in the rear-view mirror. (Remember the Greek debt crisis? Well, barely).
Our belief in the value of staying invested can be best supported by looking backwards to a ten year chart of the Dow Jones Industrial Average as a very recognizable proxy. It is common to feel weighed down by the daily or monthly gyrations for the stock market, and lose sight of the gains of the past decade (as seen in the chart below).
With the Dow's close on 9/30/23 at 33,507, it is easily forgotten and appreciated that the Dow crossed the 20,000 mark for the first time on January 25, 2017.
The rewards of staying invested with a well-diversified portfolio or portfolios are self-evident, during a decade with its own unique challenges. Accordingly, we remain committed to our long-term investment strategies on your behalf.
Let us also take this opportunity to thank you for your trust and commitment, which inspires us each day. Have a great fall season!
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Relationships are built on trust, and trust is built on integrity. Penobscot Investment Management has helped clients build their futures based on this principle since 1988 by providing
individualized, purpose-driven investing.
“Trust is the key driver to building solid investment portfolios,” says portfolio manager and director of research Colleen MacPherson “To us, people are everything, and no two people or portfolios are alike.”
At Penobscot, high-touch service is key to helping clients preserve and grow their capital. The prestigious, Boston-based investment management firm boasts an average client balance of $2 million with $700 million in total assets under management (as of 12/31/22), thanks to
tenured financial professionals like MacPherson.
“Tailoring personalized, practical investment counsel for individuals, families, and small institutions goes beyond managing assets and reporting returns,” she says. “Our mission is to build solid, collaborative relationships with clients which allows us to design each portfolio based on each unique circumstance and set of goals.”
With more than a decade of hands-on practice, MacPherson began her financial career in private banking and wealth management. Now she’s not only helping clients build tailored, growth-driven portfolios, she’s made it her mission to nurture other female financial professionals to navigate the path to success.
“Women are well-suited for financial careers because we’re empathetic,
an essential trait needed to guide clients through decisions that impact their families and future,” she says.
“Learning how to uncover a client’s wants and needs requires empathy, patience, and skill,” MacPherson explains. “When you ask the right questions and truly listen, you understand what drives their
financial journey.”
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Colleen works with young investors and women who are interested in solidifying their portfolios for the future. “Financially empowering young people—especially women—is my passion,” says MacPherson. “Investing can be intimidating. Traditionally, the male in the family has historically taken the reins of financial planning. Today, families are changing, young people are staying single longer, and women are shifting the wealth balance. I make sure women are included in the conversation.”
Whether retiring or just entering their prime earning years, women investors face unique challenges including risk tolerance, longevity issues, and health care costs. Younger investors have similar concerns. That’s why MacPherson builds holistic investment strategies that align with their concerns and aspirations.
“My conversations with female clients are more personal,” she notes. “They aren’t strictly about investments. Women focus on the bigger picture and ensure every component is covered.”
THE NEXT GENERATION
A mentor for the Babson College Fund, a course in which students manage $5 million of the Babson College endowment, MacPherson says, “We’re mentoring the next generation and introducing them to a rewarding, fulfulling career.
“People are naturally spenders or savers, yet they develop smarter financial habits as they learn. The earlier that starts, the better,” says MacPherson.
“Minimize your debt and begin investing young. It’s not as complicated as it seems,” she advises, noting that more professional possibilities exist for women than ever as the financial industry evolves.
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155 Federal Street Suite 1602 Boston MA 02110 | 617-227-3111 | www.pimboston.com
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