Baldwin Investment Management, LLC became registered with the Securities and Exchange
Commission on July 5, 1999 and commenced business as an investment adviser on that
date.
Baldwin Investment Management’s Principal Owners are as follows:
Baldwin Investment Management, LLC is wholly owned by Baldwin Management, LLC. The
principal owners of Baldwin Management LLC are as follows:
W. Paul Havens, Jr. and Ida H. Havens Trust F/B/O Peter H. Havens
Peter H. Havens is the Chief Executive Officer and Chairman of the Board of Managers of
Baldwin Management, LLC.
The managers Baldwin Investment Management, LLC are as follows:
Peter H. Havens Peter H. Havens was born July 17, 1954. He earned an A.B. in economics from Harvard
College in 1976 and an M.B.A. in finance from Columbia University in 1981. Mr. Havens
founded Baldwin in May 1999 and is currently Chairman of Baldwin. From May 1995 to
March 1999, Mr. Havens was an Executive Vice President of The Bryn Mawr Trust
Company and was in charge of its Investment Management and Trust Division. From April
1992 to May 1995, Mr. Havens was manager at Kewanee Enterprises, a family investment
office.
Mr. Havens is the Chief Compliance Officer of Baldwin.
Susan Berry Gorelli Susan Berry Gorelli was born July 28, 1959. She earned a B.A. in economics and history
from the University of Delaware in 1981. Ms. Berry Gorelli joined Baldwin in July 1999 and
is currently a Managing Director of Baldwin. From October 1994 to July 1999, Ms. Berry
Gorelli was a portfolio manager of The Bryn Mawr Trust Company. From March 1985 to
May 1994, Ms. Berry Gorelli was a Vice President-Secondary marketing at Meridian
Mortgage Corporation.
David Buten David Buten was born September 8, 1938. He earned a B.S. in accounting from the
University of Pennsylvania – Wharton School in 1960. Mr. Buten joined Baldwin in July
1999 and is currently a Managing Director of Baldwin. From February 1991 to July 1999,
Mr. Buten was a broker at Prudential Securities.
Cathy Berry Cathy Berry was born July 23, 1955. She earned a B.A. in linguistics/communications from
D&E College in 1977. Ms. Berry joined Baldwin in July 1999 and is currently a Managing
Director of Baldwin. From July 1989 to July 1999, she was a broker at Prudential
Securities.
Richard K. May
Richard K. May was born on December 3rd, 1946. He received his B.A. from Princeton
University and his MBA from the University of Michigan. Mr. May is currently a Managing
Director of Baldwin.
Baldwin Investment Management LLC ("Baldwin") provides continuous and regular
supervisory or management services. Baldwin gives continuous advice to its clients based
on the individual needs of each client. Baldwin provides investment supervisory services to
individuals, trusts, estates, charitable organizations, corporations, pension and profit-
sharing plans. Baldwin manages accounts on a discretionary and non-discretionary basis.
In circumstances where Baldwin has discretion, it has discretionary authority regarding
the securities to be bought or sold and the amount of securities to be bought or sold.
Account supervision is guided by the stated objectives of the client (i.e., maximum capital
appreciation, growth, income, or growth and income). Consideration is given to the
allocation of assets to equity and fixed income securities and recommendations and
selections are tailored to the individual's overall investment objective.
Baldwin offers Financial Planning services to clients.
Assets Under Management Baldwin’s Assets under Management are calculated as of December 31, 2019
Discretionary Assets: $ 465,326,899
Non-Discretionary Assets: $ 335,966,620
Total: $ 801,293,519
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Generally, a minimum of $1,000,000 of assets under management is required for accounts,
although there may be exceptions from time to time. Under certain circumstances, certain
assets are excluded from fee calculations.
The client may terminate an investment advisory or financial planning agreement at any
time on written notice, and Baldwin may terminate the agreement after thirty days' written
notice.
FEES- PERCENTAGE OF ASSETS UNDER MANAGEMENT
Client's Fee Schedule For Discretionary Investment Management is as follows:
Equity and Balanced Portfolios:
Market Value Fee
On the first $1 million 1.0%
Accounts over $1 million negotiable
Fees are payable monthly or quarterly (either in advance or in arrears based on client
circumstances) based upon the calendar month end market value as provided by the
custodian (market value or fair market values in the absence of market value, plus any
credit balance or minus any debit balance) of the client's account. Client will authorize
Baldwin to invoice directly the custodian specified in the Advisory Services Agreement for
such management fees earned by Baldwin. Where a fee is based on asset value, such value
shall be determined by Baldwin, unless otherwise determined by the custodian, at the close
of business on the last business day of the billing period. A group of family accounts may be
considered as one account in computing the annual fee. Fees are negotiable. Fees which
may be paid in advance are refunded on a pro-rata basis if the service is terminated within
the payment period. If a client is invested in mutual funds, a proportionate amount of the
operating expenses of the various funds in which they are invested are charged by the fund,
including management fees that are paid to the funds' advisers. Baldwin has no financial
interest in such payments.
Baldwin offers Advisory Investment Management services for a fee of $245/hour.
Baldwin offers Financial Planning services to clients for a minimum fixed fee of $1,500.
Baldwin’s fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses which shall be incurred by the client. Clients may incur certain charges
imposed by custodians, brokers, third party investment and other third parties such as fees
charged by managers, custodial fees, deferred sales charges, odd-lot differentials, transfer
taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions. Mutual funds and exchange traded funds also charge
internal management fees, which are disclosed in a fund’s prospectus.
Such charges, fees and commissions are exclusive of and in addition to Baldwin’s fee, and
Baldwin shall not receive any portion of these commissions, fees, and costs.
Item 12 further describes the factors that Baldwin considers in selecting or recommending
broker-dealers for client transactions and determining the reasonableness of their
compensation (e.g., commissions).
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Baldwin provides portfolio management services to individuals, high net worth individuals,
pension and profit-sharing plans, corporations and charitable organizations.
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Investing in securities involves risk of loss that clients should be prepared to bear.
Methods of Analysis
Our security analysis methods include fundamental analysis, technical and cyclical analysis
of the world economy, national economies, industry sectors and individual securities. Our
main sources of information are financial newspapers and magazines, inspection of
corporate activities, annual reports, prospectuses and filings with the Securities and
Exchange Commission and other regulators, research prepared by others, corporate ratings
services and company press releases.
Investment Strategies
Asset Allocation
Portfolios are individually structured to meet the growth and income needs of each client. We are
mindful of the importance of asset allocation and that tax efficient investing provides enhanced
long-term rewards.
Recognizing that an appropriate asset allocation plan significantly influences investment
performance, we initially meet with our clients to understand their risk sensitivity, as well
as their current and future goals and circumstances. We then structure an asset allocation
plan that fulfills our clients' needs and desires. While cash and high-quality bonds are
included in most asset allocation strategies, we believe that stocks will outperform fixed
income investments over the long run.
Equities
Our stock selection process combines the best of three methodologies: our proprietary
quantitative stock selection model, our qualitative stock research database and our
technical chart guidance.
Baldwin's proprietary quantitative stock selection model identifies global companies that
exhibit superior price and earnings growth patterns, with a lesser but significant focus on
price- earnings and price-to-sales attributes. We begin with a universe of over 800 stocks,
applying our formula to each in order to assign decile rankings. The stocks favored in the
rankings have performed extremely well to date.
From the stock universe, we select and maintain the Baldwin Working List which includes
approximately 150 stocks. Consistently high rankings and appropriate sector
representation are two key criteria in the compilation and maintenance of the Baldwin
Working List. Our portfolio managers meet frequently to discuss the relative growth
potential of each stock sector. Larger stock positions or a greater number of stocks are
purchased within sectors with strong growth prospects, while smaller positions or fewer
stocks are chosen within less favored sectors.
In addition, we maintain a comprehensive stock research database. Each portfolio manager
focuses on one or more equity sectors, such as Technology or Health Care, taking
responsibility for understanding the companies and their stories. Their qualitative
opinions, culled from a wide diversity of Wall Street and independent sources, are regularly
added to the stock research database and support Working and Select list decisions.
Our technical approach consists of reviewing a variety of technical price charts for
companies within our stock universe. These charts may serve as early warning indicators
for companies poised to out- or under- perform the market. We also recognize that these
images can assist us in our timing of stock purchases and sales and further enhance
investment performance.
Fixed Income
Taxable (government, agency and corporate) and tax-exempt (municipal) bonds are
considered, depending upon a client's tax status and overall market conditions.
In many of our fixed income portfolios, bonds mature every year. Replacement bonds may
be purchased with a maturity date beyond the longest existing in the portfolio. The
technique is known as laddering maturities. Laddering maturities ensures that a client's
holdings will better track the long-term direction of interest rates. Alternately, the
proceeds from the bonds maturing annually could be invested in different assets or used
for other purposes, depending upon client circumstances.
In sum, at Baldwin we are adept at structuring and managing fixed income portfolios.
Risks
Investing involves risk, including possible loss of principal. Asset allocation strategies and
diversification do not promise any level of performance or guarantee against loss of
principal, and diversification may not protect against market risk.
Equities Risk
Systematic risk: Economic crisis, interest rates, political turmoil, recession and a host of
other factors can cause systematic risk. Systematic risk affects the market as a whole. A
broad range of securities in an investor's portfolio are exposed to systematic risk. This risk
impacts the entire markets and cannot be mitigated through diversification.
Correlation risk is the risk that two assets will not move up or down in value as predicted.
Correlation between stock price movements can also compound uncertainties. News
pertaining to some stocks can trigger fluctuations in some other stocks with a high
correlation.
Liquidity risk is the risk that a security is unable to be sold in a timely manner to prevent
significant loss or to reap desired profits. Stocks that are traded in low volumes are
referred to as illiquid and are difficult to sell.
Sector risk is the danger that the stocks of many of the companies in one sector (like health
care or technology) will fall in price at the same time because of an event that affects the
entire industry.
Fixed Income Risk
Bonds and bond funds will decrease in value as interest rates rise. Investment return and
principal value will fluctuate so that a fixed income investment, when sold or redeemed,
may be worth more or less than the original cost and potentially subject to capital gains
taxes. Tax-exempt fixed income strategies invest in securities designed to pay income that
is exempt from certain income taxes, but a portion of the income may be subject to federal
or state income taxes or the alternative minimum tax. Federal or state changes in income or
alternative minimum tax rates or in the tax treatment of municipal bonds may make them
less attractive as investments and cause them to lose value.
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Registered investment advisers are required to disclose all material facts regarding any
legal or disciplinary events that would be material to your evaluation of Baldwin or the
integrity of Baldwin. Baldwin Investment Management has no information applicable to
this Item.
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Baldwin is also a licensed insurance agency. As a part of its financial planning services,
Baldwin may recommend the purchase of life, health and variable annuity insurance
products. If a client purchases insurance products Baldwin and its employees may receive
commissions and other benefits or compensation from the sale of such insurance products.
As a result of the ownership relationship between Baldwin and Baldwin Management LLC,
Baldwin Management LLC will also benefit financially from the sale of insurance products.
Baldwin may also refer clients to an affiliate, Baldwin Family Office LLC, which provides
certain administrative services such as the payment of household bills, maintenance of tax
records and the preparation of tax returns.
The Chief Executive Officer and Chief Compliance Officer for Baldwin is Peter H. Havens.
For its foundation clients, Baldwin may also refer clients to Baldwin Family Office LLC,
which provides certain administrative services such as (I) maintaining a place of business;
(1) maintaining certain books and records; (3) assisting in the definition of
foundation guidelines; (4) conducting site visits; (5) representing foundation at
official functions; (6) providing accounting/tax/payroll functions; (7) arranging a
solicitation compliance file system; (8) scheduling trustees' meetings and preparing
minutes and (9) maintaining compliance with applicable federal and state laws. As a
result of the ownership relationship among Baldwin, Baldwin Management LLC and
Baldwin Family Office LLC, Baldwin Management LLC will also benefit if a Baldwin client
decides to utilize Baldwin Family Office LLC's services.
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Baldwin has adopted a Code of Ethics for all supervised persons of the firm describing its
high standard of business conduct, and fiduciary duty to its clients. The Code of Ethics
includes provisions relating to the confidentiality of client information, a prohibition on
insider trading, a prohibition of rumor mongering, restrictions on the acceptance of
significant gifts and the reporting of certain gifts and business entertainment items, and
personal securities trading procedures, among other things. All supervised persons at
Baldwin must acknowledge the terms of the Code of Ethics annually, or as amended.
Baldwin’s employees and persons associated with Baldwin are required to follow
Baldwin’s Code of Ethics. Subject to satisfying this policy and applicable laws, officers,
directors and employees of Baldwin and its affiliates may trade for their own accounts in
securities which are recommended to and/or purchased for Baldwin’s clients. The Code of
Ethics is designed to assure that the personal securities transactions, activities and
interests of the employees of Baldwin will not interfere with (i) making decisions in the
best interest of advisory clients and (ii) implementing such decisions while, at the same
time, allowing employees to invest for their own accounts. Under the Code certain classes
of securities have been designated as exempt transactions, based upon a determination
that these would materially not interfere with the best interest of Baldwin‘s clients. In
addition, the Code requires pre-clearance of many transactions, and restricts trading in
close proximity to client trading activity. Nonetheless, because the Code of Ethics in some
circumstances would permit employees to invest in the same securities as clients, there is a
possibility that employees might benefit from market activity by a client in a security held
by an employee. Employee trading is continually monitored under the Code of Ethics, and
to reasonably prevent conflicts of interest between Baldwin and its clients.
Certain affiliated accounts may trade in the same securities with client accounts on an
aggregated basis when consistent with Baldwin's obligation of best execution. In such
circumstances, the affiliated and client accounts will share commission costs equally and
receive securities at a total average price. Baldwin will retain records of the trade order
(specifying each participating account) and its allocation, which will be completed prior to
the entry of the aggregated order. Completed orders will be allocated as specified in the
initial trade order. Partially filled orders will be allocated on a pro rata basis. Any
exceptions will be explained on the Order.
Baldwin’s clients or prospective clients may request a copy of the firm's Code of Ethics by
contacting Peter H. Havens.
It is Baldwin’s policy that the firm will not affect any principal or agency cross securities
transactions for client accounts. Baldwin will also not cross trades between client accounts.
Principal transactions are generally defined as transactions where an adviser, acting for its
own account or the account of an affiliated broker-dealer, buys from or sells any security to
any advisory client. A principal transaction may also be deemed to have occurred if a
security is crossed between an affiliated hedge fund and another client account. An agency
cross transaction is defined as a transaction where a person acts as an investment adviser
in relation to a transaction in which the investment adviser, or any person controlled by or
under common control with the investment adviser, acts as broker for both the advisory
client and for another person on the other side of the transaction. Agency cross
transactions may arise where an adviser is dually registered as a broker-dealer or has an
affiliated broker-dealer.
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Baldwin will select those brokers or dealers which will provide the best price and
execution. Best price is normally an important factor in this decision, but the selection also
takes into account the reasonableness of commissions, the quality of brokerage services,
including such factors as execution capability, willingness to commit capital,
creditworthiness and financial stability and clearance and settlement capability, and the
broker's ability to provide professional research and other services. Baldwin may,
therefore, use a broker who provides useful research and securities transaction services
even though a lower commission may be charged by another broker who does not offer
research and securities transaction assistance. Accordingly, transactions will not always be
executed at the lowest available price or commission.
Such services may be useful to all of Baldwin's clients, but not all such services may be
useful for the account for which the particular transaction was affected.
Many clients, when undertaking an advisory relationship, have an existing brokerage
relationship, and they will instruct Baldwin to execute all transactions through the broker
with which this brokerage relationship already exists.
In the event that a client directs Baldwin to use a particular broker or dealer, Baldwin may
be unable, under those circumstances, to negotiate commissions and to obtain volume
discounts or best execution and clients who direct Baldwin to use a particular broker or
dealer may pay higher commission charges. In addition, under these circumstances there
may be a disparity in commission charges to clients who direct Baldwin to use a particular
broker or dealer.
Baldwin allocates securities and advisory recommendations among its clients in a fair and
equitable manner. From time to time, Baldwin may aggregate orders on behalf of its
advisory clients. In these cases, transaction costs are shared proportionately by the fund
or account, as applicable, which are part of the block. If an aggregated trade is not
completely filled, then the Adviser typically allocates the trade among the funds or
accounts, as applicable, on a pro rata basis based upon account size. Exemptions are
permitted on a case-by-case basis when judged by the Advisor to be fair and reasonable to
the funds or accounts involved.
Baldwin has implemented procedures (the "Allocation Procedures") to prevent any client
account from being systematically disadvantaged by the aggregation of orders. The
Allocation Procedures require the distribution of investment opportunities among eligible
client accounts based on a number of factors, including the client's goals, the investment
guidelines for the accounts, the account's portfolios, the client's instructions to Baldwin, the
available cash and purchasing power of the accounts and Baldwin's judgment.
Charles Schwab & Co., Inc.
Baldwin Investment Management, LLC may recommend that clients establish brokerage
accounts with the Schwab Institutional division of Charles Schwab & Co., Inc. (Schwab), a
FINRA registered broker-dealer, member SIPC, to maintain custody of clients' assets and to
effect trades for their accounts. Although Baldwin Investment Management, LLC may
recommend that clients establish accounts at Schwab, it is the client's decision to custody
assets with Schwab. Baldwin Investment Management, LLC is independently owned and
operated and not affiliated with Schwab.
Schwab provides Baldwin Investment Management, LLC with access to its institutional
trading and custody services, which are typically not available to Schwab retail investors.
These services generally are available to independent investment advisors on an
unsolicited basis, at no charge to them so long as a total of at least $10 million of the
advisor's clients' assets are maintained in accounts at Schwab Institutional. These services
are not contingent upon Baldwin Investment Management, LLC committing to Schwab any
specific amount of business (assets in custody or trading commissions). Schwab's
brokerage services include the execution of securities transactions, custody, research, and
access to mutual funds and other investments that are otherwise generally available only to
institutional investors or would require a significantly higher minimum initial investment.
For accounts of Baldwin's clients maintained in custody at Schwab, Schwab will not charge
the client separately for custody, but will receive compensation from Baldwin's clients in
the form of other transaction-related compensation on securities trades executed through
Schwab. Schwab also will receive a fee (generally lower than the applicable commission
on trades it executes) for clearance and settlement of trades executed through broker-
dealers other than Schwab. Schwab's fees for trades executed at other broker-dealers are
in addition to the other broker-dealer's fees. Thus, Baldwin may have an incentive to cause
trades to be executed through Schwab rather than another broker-dealer. Trades for client
accounts held in custody at Schwab may be executed through a different broker-dealer
than trades for Baldwin's other clients. Thus, trades for accounts custodied at Schwab may
be executed at different times and different prices than trades for other accounts that are
executed at other broker-dealers.
Schwab's products and services that assist Baldwin Investment Management, LLC in
managing and administering clients' accounts include software and other technology that
(i) provide access to client account data (such as trade confirmations and account
statements); (ii) facilitate trade execution and allocate aggregated trade orders for multiple
client accounts; (iii) provide research, pricing and other market data; (iv) facilitate
payment of Baldwin Investment Management, LLC fees from its clients' accounts; and (v)
assist with back-office functions, recordkeeping and client reporting. When Baldwin
receives such research and other services in connection with client securities transactions
through Schwab, we receive an economic benefit because we do not have to produce or pay
for that research and other services.
Baldwin also receives unsolicited research reports from various broker-dealers that
receive client commissions. Receipt of these unsolicited reports is not contingent upon any
level of brokerage business and Baldwin has not entered into any contract or agreement
concerning these reports. Baldwin does not receive any other research or products or
services from any broker-dealer or third party in connection with client securities
transactions (“soft dollar benefits”).
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Accounts are reviewed by a portfolio manager at least quarterly. Review may also be
undertaken because of changes in market conditions, changes of securities positions or
changes in investment goals or policies. Applicant currently has seven portfolio
managers. Clients receive quarterly reports outlining cost and market value of all assets,
a history of transactions during the preceding period, and a summary of all gains and
losses secured.
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Clients should receive at least quarterly statements from the broker dealer, bank or other
qualified custodian that holds and maintains client’s investment assets. Baldwin urges you
to carefully review such statements and compare such official custodial records to the
account statements that we may provide to you. Our statements may vary from custodial
statements based on accounting procedures, reporting dates, or valuation methodologies of
certain securities.
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Baldwin usually receives discretionary authority from the client at the outset of an
advisory relationship to select the identity and amount of securities to be bought or sold. In
all cases, however, such discretion is to be exercised in a manner consistent with the stated
investment objectives for the particular client account. Investment discretion is granted to
Baldwin by the client by the execution of a limited power of attorney. This power of
attorney is a part of the Baldwin Investment Management Account and the brokerage
account application.
When selecting securities and determining amounts, Baldwin observes the investment
policies, limitations and restrictions of the clients for which it advises. Investment
guidelines and restrictions must be provided to Baldwin in writing.
Clients that select discretionary accounts have the opportunity to impose reasonable
investment restrictions applicable to Client’s assets. Investment restrictions must be
reasonable, as solely determined by Baldwin, and must be complete and consistent with
applicable law.
Baldwin will observe the investment restrictions that the Client provides, if deemed
reasonable; provided that Baldwin reserves the right to seek further direction from the
Client before any such investment restrictions are observed.
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Unless specifically directed, Client is responsible to vote proxies, consents, waivers and
other documents regarding corporate actions, with respect to any securities held in Client's
Account. However, when so directed by the client, Baldwin will vote to protect the rights
and enhance the economic welfare of those to whom we owe a fiduciary duty.
ERISA also sets forth special requirements for proxy voting for shares held by pension plan
accounts. Consistent with the ERISA definition of fiduciary responsibility, Baldwin votes all
proxies, and all proxy voting decisions are made solely in the best interests of the Plan's
participants and beneficiaries, unless the client has reserved the authority to direct the
voting of all proxies or a specified class of proxy issues. There must be an express
reservation of such authority, or the authority to unilaterally revoke Baldwin's authority to
vote proxies, if desired, in the Advisory Agreement.
A member of Baldwin Investment Committee reviews all proxies for which we have voting
responsibility, and generally vote all proxies to protect and forward the interests of our
clients.
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Baldwin Investment Management has no financial commitment that impairs its ability to
meet contractual and fiduciary commitments to clients and has not been the subject of a
bankruptcy proceeding.
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Open Brochure from SEC website