Institutional Trading
Soft-Dollar and Commission Recapture Programs
Municipal Underwriting

Institutional Trading

Because of our commitment to provide best execution, add value, and surpass expectations, we are uniquely qualified to provide equity and fixed income-trading services to institutional investment managers, pension funds, foundations, and endowments. With an average of 20 years of trading experience, our traders have the ability to innovatively execute trades without adversely affecting the market, access information that will assist our clients in making effective trading decisions, and ensure a client's anonymity.

Capabilities

  • With direct lines to independent floor brokers, we are well positioned to execute trades on the NYSE and Regional exchanges.
  • By keeping pace with the electronic developments in the brokerage industry, and utilizing the most up-to-date trading systems available, our traders can effectively execute equity orders for both Passive and Active money managers.
  • We are a principal market maker in a tailored list of NASDAQ stocks.
  • We have the ability to obtain competitive prices on the following fixed income securities: US Government and Agency issues, Mortgage-Backed issues, Municipal Bonds, and Certificates of Deposit.
  • To meet the needs of clients that wish to trade foreign equities, we have formed alliances with Merrill Lynch, Pershing, and HSBC to execute trades on our behalf.

Clearing

Pacific American Securities has domestic clearing relationships with Pershing LLC and Broadcort.

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Soft Dollar Programs

Investment Managers may utilize commission dollars to obtain research services by establishing a soft-dollar account with Pacific American Securities. We are committed to providing our soft-dollar clients with the following services:

  • Accurate and timely trade execution.
  • Competitive commission ratios.
  • An accurate accounting of soft-dollar expenses vs. commissions.
  • A monthly detail of soft-dollar balances.
  • Effective monitoring of all soft-dollar expenses to ensure that payments are made for expenses allowable under 28(e), the safe harbor rule.

Commission Recapture Programs

Commission Recapture programs have become very popular with Pension Funds. The primary reason for their popularity is the desire of trustees to maximize returns for their participants. Pension Funds use the programs to simultaneously increase cash flow and reduce transaction costs.

Our Commission Recapture program will satisfy the following fiduciary guidelines:

  • Control the assets of the Fund.
  • Conserve the assets of the Fund.
  • Effectively use commissions for the benefit of the participants.

We recognize that these programs are dependent upon participation of the investment managers. We encourage their participation by providing the same level of service that we provide to all of our clients. Our traders communicate regularly with our money managers. Our traders are proactive, they will not "wait by the phone" for an order.

Because every retirement plan has unique needs, we can customize a program specific to each Fund. Included in each program is a complete record keeping service that will report trade and commission breakdowns, and provide monthly and quarterly statements.

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Municipal Underwriting

Pacific American Securities is among the firms listed in the State of California's underwriting pool and acts, from time to time, as co-manager for new bond issues from both the State of California and local governments.

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