J.W. Burns & Company, Inc. is an SEC-registered investment adviser with its principal
place of business located in DeWitt, New York. J.W. Burns & Company, Inc. began
conducting business in 1974.
Listed below are the firm's principal shareholders (i.e., those individuals and/or entities
controlling 25% or more of this company).
• James C. Burns, President, Chief Operating Officer
J.W. Burns & Company, Inc. offers the following advisory services to our clients:
INDIVIDUAL PORTFOLIO MANAGEMENT
Our firm provides asset management of client funds based on the individual needs of
the client. Through personal discussions in which goals and objectives based on the
client's particular circumstances are established, we develop the client's personal
investment policy. We create and manage a portfolio based on that policy. During our
data-gathering process, we determine the client's individual objectives, time horizons,
risk tolerance, and liquidity needs. As appropriate, we may also review and discuss a
client's prior investment history, as well as family composition and background.
We manage these advisory accounts on a discretionary or non-discretionary basis.
Account supervision is guided by the client's stated objectives (i.e., maximum capital
appreciation, growth, income, or growth and income), as well as tax considerations.
Clients may impose reasonable restrictions on investing in certain securities, types of
securities, or industry sectors.
Once the client's portfolio has been established, we review the portfolio periodically, and
if necessary, rebalance the portfolio at that time, based on the client's individual needs.
Our investment recommendations are not limited to any specific product or service
offered by a broker-dealer or insurance company and will generally include advice
regarding the following securities:
• Exchange-listed securities
• Commercial paper
• Certificates of deposit
• Corporate bonds
• Municipal securities
• United States governmental securities
• Mutual fund shares
Because some types of investments involve certain additional degrees of risk, they will
only be implemented when consistent with the client's stated investment objectives,
tolerance for risk, liquidity and suitability.
Limitations of Financial Planning and Non-Investment Consulting Services
To the extent requested by a client, we may provide financial planning and related
consulting services. However, we do not assist clients with the implementation of any
financial plan, unless we have agreed to do so in writing.
Although we may provide recommendations regarding non-investment related matters,
such as estate planning, tax planning and insurance we do not serve as a law firm,
accounting firm, or insurance agency, and no portion of our services should be
construed as legal, accounting, or insurance implementation services. Accordingly, we
do not prepare estate planning documents, tax returns or sell insurance products.
To the extent requested by a client, we may recommend the services of other
professionals for certain non-investment implementation purposes (i.e., attorneys,
accountants, insurance agents, etc.). The client is under no obligation to engage the
services of any such recommended professional. The client retains absolute discretion
over all such implementation decisions and is free to accept or reject any
recommendation.
Client Obligations
In performing its services, we shall not be required to verify any information received
from a client or from the client's other designated professionals, and we are expressly
authorized to rely thereon. Moreover, each client is advised that it remains their
responsibility to promptly notify us if there is ever any change in the client’s financial
situation or investment objectives for the purpose of reviewing, evaluating or revising
our previous recommendations and/or services.
Non-Discretionary Service Limitations
Clients that determine to engage us on a non-discretionary investment advisory basis
must be willing to accept that we cannot effect any account transactions without
obtaining prior consent to any such transaction(s) from the client. Therefore, in the
event that we would like to make a transaction for a client’s account (including an
individual holding or in the event of general market correction), and the client is
unavailable, we will be unable to effect the account transaction(s) (as it would for its
discretionary clients) without first obtaining the client’s consent.
Retirement Rollovers-Conflict of Interest
A client or prospective client leaving an employer typically has four options regarding an
existing retirement plan (and may engage in a combination of these options): (i) leave
the money in the former employer’s plan, if permitted, (ii) roll over the assets to the new
employer’s plan, if one is available and rollovers are permitted, (iii) roll over to an
Individual Retirement Account (“IRA”), or (iv) cash out the account value (which could,
depending upon the client’s age, result in adverse tax consequences). We do not
provide recommendations on rollovers. However, if requested, we may provide
educational materials to assist clients who are considering a rollover. No client is under
any obligation to rollover retirement plan assets to an account for us to manage.
Portfolio Activity
We have a fiduciary duty to provide services consistent with the client's best interest.
As part of its investment advisory services, we will review client portfolios on an ongoing
basis to determine if any changes are necessary based upon various factors, including
but not limited to investment performance, fund manager tenure, style drift, account
additions/withdrawals, the client's financial circumstances, and changes in the client's
investment objectives. Based upon these and other factors, there may be extended
periods of time when we determine that changes to a client's portfolio are neither
necessary nor prudent. Notwithstanding, there can be no assurance that investment
decisions we make will be profitable or equal any specific performance levels.
Use of Mutual and Exchange Traded Funds
Most mutual funds and exchange traded funds are available directly to the public.
Therefore, a prospective client can obtain many of the funds that we may use
independent of engaging us as an investment advisor.
However, if a prospective client
determines to do so, they will not receive our initial and ongoing investment advisory
services.
Socially Responsible (ESG) Investing Limitations
Socially Responsible Investing involves the incorporation of Environmental, Social and
Governance (“ESG”) considerations into the investment due diligence process. ESG
investing incorporates a set of criteria/factors used in evaluating potential investments:
Environmental (i.e., considers how a company safeguards the environment);
Social (i.e., the manner in which a company manages relationships with its employees,
customers, and the communities in which it operates); and Governance (i.e., company
management considerations). The number of companies that meet an acceptable ESG
mandate can be limited when compared to those that do not and could underperform
broad market indices. Investors must accept these limitations, including potential for
underperformance. Correspondingly, the number of ESG mutual funds and exchange-
traded funds are limited when compared to those that do not maintain such a mandate.
As with any type of investment (including any investment and/or investment strategies
we recommended and/or undertake), there can be no assurance that an investment in
ESG securities or funds will be profitable or prove successful. We do not maintain or
advocate an ESG investment strategy but will seek to employ ESG if directed by a client
to do so. If implemented, we shall rely upon the assessments undertaken by the
unaffiliated mutual fund, exchange traded fund or separate account portfolio manager to
determine that the fund’s or portfolio’s underlying company securities meet a socially
responsible mandate.
Cash Positions
We continue to treat cash as an asset class. As such, unless we determine to the
contrary, all cash positions (money markets, etc.) shall continue to be included as part
of a client’s total assets under management for purposes of calculating our advisory fee.
At any specific point in time, depending upon perceived or anticipated market
conditions/events (there being no guarantee that such anticipated market
conditions/events will occur), we may maintain cash positions for defensive purposes. In
addition, while assets are maintained in cash, such amounts could miss market
advances. Depending upon current yields, at any point in time, our advisory fee could
exceed the interest paid by the client’s money market fund.
Cash Sweep Accounts
Certain account custodians can require that cash proceeds from account transactions or
new deposits, be swept to and/or initially maintained in a specific custodian designated
sweep account. The yield on the sweep account will generally be lower than
those available for other money market accounts. When this occurs, to help mitigate the
corresponding yield dispersion we shall (usually within 30 days thereafter) generally
(with exceptions) purchase a higher yielding money market fund (or other type security)
available on the custodian’s platform, unless we reasonably anticipate that we will utilize
the cash proceeds during the subsequent 30-day period to purchase additional
investments for the client’s account. Exceptions and/or modifications can and will
occur with respect to all or a portion of the cash balances for various reasons, including,
but not limited to the amount of dispersion between the sweep account and a money
market fund, the size of the cash balance, an indication from the client of an imminent
need for such cash, or the client has a demonstrated history of writing checks from the
account.
The above does not apply to the cash component maintained within an actively
managed investment strategy (the cash balances for which shall generally remain in the
custodian designated cash sweep account), an indication from the client of a need for
access to such cash, assets allocated to an unaffiliated investment manager and cash
balances maintained for fee billing purposes.
The client shall remain exclusively responsible for yield dispersion/cash balance
decisions and corresponding transactions for cash balances maintained in any
unmanaged accounts.
Cybersecurity Risk
The information technology systems and networks that we and our third-party service
providers use to provide services to clients employ various controls, which are designed
to prevent cybersecurity incidents stemming from intentional or unintentional actions
that could cause significant interruptions in our operations and result in the unauthorized
acquisition or use of clients’ confidential or non-public personal information. Clients and
our firm are nonetheless subject to the risk of cybersecurity incidents that could
ultimately cause them to incur losses, including for example: financial losses, cost and
reputational damage to respond to regulatory obligations, other costs associated with
corrective measures, and loss from damage or interruption to systems. Although we
have established procedures to reduce the risk of cybersecurity incidents, there is no
guarantee that these efforts will always be successful, especially considering that we do
not directly control the cybersecurity measures and policies employed by third-party
service providers. Clients could incur similar adverse consequences resulting from
cybersecurity incidents that more directly affect issuers of securities in which those
clients invest, broker-dealers, qualified custodians, governmental and other regulatory
authorities, exchange and other financial market operators, or other financial
institutions.
Wrap / Separately Managed Account Programs
In the event that we are engaged to provide investment advisory services as part of an
unaffiliated wrap-fee program, we will be unable to negotiate commissions and/or
transaction costs. Higher transaction costs adversely impact account performance.
Under a wrap program, the wrap program sponsor arranges for the investor participant
to receive investment advisory services, the execution of securities brokerage
transactions, custody and reporting services for a single specified fee. Participation in a
wrap program may cost the participant more or less than purchasing such services
separately.
AMOUNT OF MANAGED ASSETS
As of 12/31/2023 we were actively managing $773,927,472 of clients' assets on a
discretionary basis plus $27,955,982 of clients' assets on a non-discretionary basis.