John Moore & Associates, Inc (hereinafter "we, us, Firm, JMA") was founded in 1997.
We are located in Albuquerque, NM. JMA provides investment management services in
a variety of equity, fixed income, and balanced strategies. We provide investment
advisory services through separately managed accounts to various clients, including
business organizations, private pensions, trusts, foundations, charitable organizations,
high net worth individuals, and other entities.
We provide personalized asset management services to our clients that help them meet
their financial goals, using their objectives, time horizons, and risk tolerance. Peace of
mind comes with better education and financial planning.
The firm is owned by Brian Cochran, Emily Cochran, and the Cochran Trust. JMA
provides investment advisory services to individuals, trusts, retirement accounts
(Individual Retirement Accounts, pensions, and profit-sharing plans).
JMA Asset Allocation
The JMA Asset Allocation Model is designed to provide broad equity exposure through
ownership of multiple mutual funds that represent specific asset classes in terms of
investment manager style and market capitalization of the underlying stocks or bonds
owned by the mutual funds. This model can also hold funds that invest in "alternative"
asset classes. These funds can utilize strategies such as short selling, managed
futures, etc.
JMA provides multiple blends of assets within the framework of the Asset Allocation
Model. For example, one version of this model has 70% domestic stocks, 10%
international stocks, 10% bonds, and 10% alternative investments. Another version
reduces the domestic stocks to 50% and increases the bond investment to 30% of the
portfolio.
The objective of this fund is to generate returns competitive with the US stock market
while provided lower volatility. Even so, the Asset Allocation Model is subject to
potentially significant market value fluctuations.
JMA Dynamic Equity
The Dynamic Equity Model utilizes a proprietary quantitative model to determine a
company's potential value and relative risk based on earnings forecasts, current interest
rates, dividend yield, inflation rate, and several other factors. This quantitative method is
designed to identify companies with price potential significantly above current market
price and that have risks significantly below typical market risks. The Dynamic Equity
Model relies on strict buy and sell disciplines utilizing a multi-dimensional screening
process that provides suggested companies for purchase. Companies are added in
allocations of 4-6% depending on the number of screens passed, with a limit of 20 total
companies to be held at any time. The lowest-performing positions are sold based on a
strict sell discipline. The sell criteria can result in increased cash allocation in periods
when no companies pass screens.
The model's objective is capital appreciation with reduced equity exposure during
periods of less attractive market characteristics. The concentrated nature of the strategy
and the ability to raise cash may result in periods of outperformance relative to equity
benchmarks in either up or down market environments.
JMA Managed Bond
The Managed Bond strategy seeks to provide clients with a high-quality, intermediate
term, laddered fixed-income portfolio. Portfolios may consist of municipal bonds (tax-
free or taxable depending on client needs), investment grade corporate bonds, treasury
bonds or certificates of deposit with maturities from 2-12 years. We seek to diversify the
ladder across multiple states and sectors. Portfolios can be customized to client needs,
including state of residence, duration, or taxability of bonds. Fixed income research and
purchases are conducted through a collaboration with Nuveen Asset Management or
SP Financial Group, a subadvisor on the account. Nuveen Asset Management receives
a portion of our management fee. SP Financials compensation is built into the
purchase price of each bond they buy for our clients.
The primary objective of the strategy is the preservation of principal and interest
income. The strategy's short duration and high-quality nature are designed to limit
default risk and interest rate risk.
JMA Income
The JMA Income Model is designed to generate income higher than that available from
other fixed income investments. It primarily invests in closed-end bond funds. Other
income generating assets (such as Master Limited Partnerships and Real Estate
Investment Trusts) may also be held in this portfolio. The objective of this fund is cash
flow first. There can be significant market value fluctuations, normally somewhat less
than the US stock market.
JMA Equity Income
The Equity Income Model Portfolio combines a top-down sector approach with bottom-
up stock selection to attempt to provide a diversified, Large Cap income-oriented equity
portfolio solution. It is a diversified portfolio of 20 predominantly large capitalization
companies followed by Raymond James or another of our research providers.
The portfolio is designed to produce long-term total returns by combining current and
growing dividends with appreciating share prices. The dividend yield of the portfolio is
expected to exceed the dividend yield of the S&P 500.
JMA Equity
The Equity Model utilizes a proprietary quantitative model to determine the potential
value of a company based on forecast earnings, current interest rates, dividend yield,
and several other factors. This valuation technique is designed to create a higher
potential value for companies that are growing their profits faster than the "average"
company that is publicly traded. This valuation model can also provide useful analytics
for the broader market by breaking down common indices
such as the S&P 500,
NASDAQ, etc.
Valuations created by the Equity model are the basis for additional screening of results
to provide "short lists" of stocks that fit certain criteria such as earnings growth, dividend
yield, etc. These shortlists allow more in-depth analysis of these companies to
determine their inclusion in the actual portfolio owned by clients.
The Equity model is normally comprised of 15-25 individual stocks or exchange-traded
funds. These stocks can be of any size company but will normally be companies
growing their earnings faster than the average publicly-traded company.
Because of the concentrated number of holdings in the portfolio, it can be subject to
substantial market fluctuations. It can also be subject to extended periods of "streaky"
performance. In other words, there can be periods when the portfolio will significantly
underperform or outperform appropriate benchmarks. This "streakiness" is an important
characteristic that makes this portfolio not suitable for every investor.
JMA does provide portfolio management services for wrap fee programs, but we do not
sponsor wrap fee programs. Our wrap fee accounts are by and large managed the
same as non-wrap fee accounts. A portion of the wrap fee is paid to us as
compensation for our services.
Certain securities may be held in the client's account and designated "Administrative-
Only Investments". The Administrative-Only Investments are generally Client-
designated. Client-designated Administrative-Only Investments may be designated by
financial advisors that do not wish to collect an advisory fee on certain assets. For
example, a financial advisor may arrange with a client that holds a security that the
financial advisor did not recommend or the client wishes to hold for an extended period
of time and does not wish for their financial advisor to sell for the foreseeable future. In
such cases, the financial advisor may elect to waive the advisory fee on this security but
allow it to be held in the client's advisory account – such designations fall into the Client-
designated category.
PLEASE NOTE: Due to Department of Labor ("DOL") regulations, the designation of
Client-designated Administrative-Only Investments and the maintenance of such
positions in the client's account are not permissible in DOL-impacted retirement
accounts (such as IRAs and employer-sponsored retirement plans). The underlying
premise of this prohibition is that the maintenance of assets in an advisory account that
are not being assessed an advisory fee introduces a potential conflict that the financial
advisor's advice may be biased due to their not being compensated on this asset. As a
result, the financial advisor may recommend a course of action in their and not the
client's interest (such as selling the security to increase the financial advisor's
compensation). Raymond James has elected to preserve the ability for clients and their
financial advisors to designate assets as Client-designated Administrative-Only in their
non-DOL impacted accounts in order to maintain client choice and avoid the need to
maintain a separate account to hold these securities or cash. Nevertheless, while
Raymond James cannot accommodate this level of flexibility in DOL-impacted
retirement accounts, clients can choose to maintain securities or cash in their brokerage
account that they do not wish to be assessed an advisory fee. Administrative-Only
Investments will not be included in the Account Value when calculating applicable
asset-based advisory fee rates.
JMA assesses advisory fees on cash sweep balances ("cash") held in advisory
accounts.
Cash balances are generally expected to be a small percentage of the overall account
value in EHNW, Freedom, Freedom UMA, MDA, RJCS, RJRP, and Russell managed
accounts. However, cash balances may fluctuate at any given time at the discretion of
the portfolio manager or the AMS Investment Committee, as applicable. However,
Freedom offers the Defensive Conservative Strategy, which includes a 50% cash
allocation, and the Defensive Balanced and Defensive Growth Strategies, which include
a 20% cash allocation. These Strategies are intended to provide clients the flexibility of
raising cash in their Freedom account while maintaining continued market exposure.
Clients selecting one of these Defensive Strategies should understand the cash balance
is subject to the asset-based advisory fee. Due to the high cash allocation of the
Defensive Strategies, clients should periodically re-evaluate whether their selection of
such a strategy is appropriate in light of their financial situation and investment goals.
Billing cash balances, particularly when the cash balance is maintained for an extended
period of time or comprises a significant portion of the Account Value, may create a
financial incentive for a financial advisor to recommend maintenance of this cash versus
investing in an otherwise advisory fee-eligible security. For example, it's generally
expected that the advisory fee will be higher than the interest a client will earn on this
cash balance through their sweep account, so the client should expect to achieve a
negative return on this portion of their account. However, such cash balances will not be
subject to market risk (that is, risk of loss) associated with securities investments. As a
result, clients should periodically re-evaluate whether their maintenance of a cash
balance is appropriate in light of their financial situation and investment goals and
should understand that this cash may be held outside of their advisory account and not
subject to advisory fees.
Assets under management as of December 31, 2023, were:
Discretionary: $577,668,663.00
Non-Discretionary: $180,531,525.00
Total: $758,200,188.00