St. Germain Investment Management is a financial advisor firm located in Springfield, Massachusetts. The firm provides a range of financial planning and investment management services to many individual clients, most of whom are below the high-net-worth threshold.
This is a fee-based firm, meaning in addition to receiving client fees, some of its employees can also earn commissions from insurance sales. That's different from a fee-only firm, which avoids conflicts of interest by only receiving advisory fees.
St. Germain Investment Management Background
St. Germain Investment Management is a wholly owned subsidiary of D.J. St. Germain Co., Inc., which was founded back in 1924. St. Germain Investment Management was established in its current form in 2010, when it took over the investment advisory arm of D.J. St. Germain Co. Michael Matty serves as the president and director of the firm, as he has over 20 years of industry experience.
The firm has a fair number of advisory certifications. These include multiple chartered financial analysts (CFAs), certified financial planners (CFPs), chartered financial consultants (ChFCs), accredited investment fiduciaries (AIFs) and more.
St. Germain Investment Management Client Types and Minimum Account Size
St. Germain Investment Management offers portfolio management services to individuals with and without a high net worth, pension and profit sharing plans, charitable organizations and corporations.
While the stated minimum account size for new clients of St. Germain is $100,000, this requirement is negotiable and waivable at the discretion of the firm.
Services Offered by St. Germain Investment Management
St. Germain Investment Management provides investment management services to clients, along with general financial planning. Investment management is carried out on a discretionary basis, with portfolios being based around the financial objectives of each client. The firm further customizes investment plans by taking into account your personal risk tolerance, time horizon, liquidity needs and more.
Financial planning services are specifically tailored to clients' needs. The firm offers advice on topics like business planning, business successions and mergers, insurance needs, estate planning, retirement planning and tax planning.
St. Germain Investment Management Investment Philosophy
St. Germain's investment approaches depend on client needs. Advisors meet and work with clients to determine their risk tolerance, time horizon, income needs and other factors that all combine to inform that client's investment preferences. Overall portfolio strategies range from conservative to aggressive growth. According to the firm's latest SEC filing, methods of analysis that advisors use incorporate macro-economic, sector, industry assessments, and fundamental and technical analysis of broad financial markets as well as individual portfolio holdings.
Advisors at St. Germain invest client assets in accordance with long-term growth rather than shorter-term goals. "Buy and hold" is the primary startegy used by the firm, which, in turn, leads to advisors placing significant emphasis on the creation of an effective asset allocation. The firm's typical investments include equities, mutual funds, variable annuities, corporate and municipal bonds and U.S. government securities.
Fees Under St. Germain Investment Management
Investment management portfolios at St. Germain are charged an annual fee based on the total AUM of the client. Fees are deducted quarterly, in arrears, with the minimum quarterly fee being $25. The specific annual fee or fee schedule is different for each individual and is laid out in the investment advisory agreement between the advisor and each client, though it will not exceed 1.25%, except in specific circumstances where a minimum quarterly management fee applies.
If you subscribe to financial planning services, you may incur an additional fee. However, these services are usually included in the cost of the above investment management fee schedule.
What to Watch Out For
St. Germain Investment Management is a fee-based firm. This is because certain members of the firm's advisory staff have the ability to receive commissions from the sale of insurance products to clients. Despite this potential conflict of interest, the firm and its advisors are still fiduciaries, legally obligating them to act in your best interest at all times.
St. Germain Investment Management has three disclosures on its Form ADV. All three of them are directly attributed to the firm itself. The most recent was in 2021, which was in reference to cash sweep revenue sharing agreement it had with an affiliated broker-dealer. As a result of this, the firm paid a $300,000 fine and submitted to disgorgement.
Opening an Account With St. Germain Investment Management
If you're interested in opening an account with St. Germain Investment Management, visit the firm's website and submit a contact form so an advisor can reach out to you. You can also call the firm yourself at (413) 733-5111.
All information is accurate as of the writing of this article.
Financial Planning Tips
- Finding a qualified financial advisor who can help with your financial plan doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Wondering what kind of return you can earn on your investments? Stop by SmartAsset's investment calculator to see how much your money can grow.
