George McKelvey Co., Inc. - Frequently Asked Questions

How large is George McKelvey Company?

We are a mid-sized firm with one office. We have nine advisors who
make all investment decisions and have direct management
responsibility for each account. Our advisors have been with the firm an
average of 14 years. A minimum of two advisors, including a partner of
the firm, supervises each account so it is covered at all times. There are
11 additional individuals who serve as support staff.

It’s located in a small town. Is that a problem?

We started in a small town and have been here since inception. In a
small town, one cannot grow and prosper over the years without doing
well by one’s clients who may also be one’s neighbors and friends.
Today, we have national and international clients, and with modern
communications, geographic distance has proved no barrier to good
investment relationships. Regardless of location, we primarily work with
our clients via telephone, email, fax, and, of course, regular mail. We are
responsible for approximately $450 million under direct management.

We also have significant philanthropic commitments as trustees or
voluntary advisors to the endowments of major colleges, national
foundations, and other organizations. This brings us into contact with the
leading financial thinkers and money managers in the country.

What is the nature of George McKelvey Company’s business?

George McKelvey Co., Inc. serves primarily as investment advisor to
individuals and families. We are registered investment advisors with the
Securities and Exchange Commission. We manage money on a fee
basis and execute any transactions on a discounted commission basis.
In other words, we receive a flat fee based on the assets under
management, with a nominal transaction cost for our discretionary
clients. Therefore, we have limited economic interest in commissions on
any specific transactions. Personal and customized service is our
hallmark.

What protections exist for my account?
All our client securities are held by the largest professional custodian in
the securities industry. Client accounts have two important safeguards.
First, every month the custodian sends to each client a statement that
outlines all activity in the account. The custodian sends it to each client
directly, independent of us (we receive a copy). In short, the custodian
acts as an independent fiduciary and reports separately to our clients on
all activity. Second, our custodian provides insurance independent of
SIPC for each account’s full amount. Neither coverage protects against a
decline in the market value of securities.