Custody and administration
Custody and administration, handled
Client assets stay with an independent custodian, and our team handles the day-to-day account work, so you can stay focused on your clients.
Who holds the accounts
When a client asks who’s holding their money, this is the answer you can give them.
Client funds and securities are held by a qualified, independent custodian. We recommend Charles Schwab & Co., Inc. Advisor Services for our portfolio management program. Schwab is an independent, unaffiliated SEC-registered broker-dealer and a member of FINRA and SIPC, and it holds client securities and handles trade execution, clearance, and settlement. We don’t hold client funds or securities. Because clients authorize us to deduct our advisory fee, Form ADV Part 2A, Item 15 states that we’re deemed to have custody of client funds.
What the custodian does
Custody of securities
Client assets sit in the client’s own account at the custodian.
Trade execution
The custodian executes the trades placed for the account.
Clearance and settlement
The custodian clears and settles those transactions.
Statements
The custodian sends each client a statement at least quarterly, showing all activity, including any fees deducted.
What our team handles
This is the work that eats your evenings, and it’s exactly the work we want you to hand to us.
Trade processing
We place and process orders for the model and for individual client needs.
Systematic withdrawals
We set up and maintain recurring distributions for clients who draw income from their accounts.
Advisor fee deductions
With the client’s written authorization, the custodian deducts the advisory fee from the account, and it shows on the statement.
Portfolio rebalancing
We monitor accounts on an ongoing basis and rebalance when market conditions or a client’s circumstances call for it.
Detailed statements and reporting
Clients receive custodian statements at least quarterly, and we may provide separate reports as needed.
One team handles the operations, so you spend more time building relationships and less time on account upkeep.
How accounts are watched
We monitor accounts on an ongoing basis. The portfolio manager in charge of an account reviews it formally at least once a year, and again when economic conditions, your client’s situation or goals, or a client request call for it. Clients can limit our discretionary authority in writing, for example by restricting the types of securities we buy.
Accounts at other custodians
Some client accounts, such as 401(k) plan accounts, sit at a custodian we can’t access directly. Those can be managed through the Pontera Order Management System. The client connects the account, and we review the allocation and rebalance when needed without holding the client’s login credentials.
What we receive from Schwab
We take part in Schwab’s institutional program and receive some benefits through it, such as research and services that help us manage accounts. These are not soft-dollar compensation, and Form ADV Part 2A, Items 12 and 14 describe them. We don’t receive client referrals from Schwab.
FAQ
Questions about custody
- No. A qualified, independent custodian holds them, and we recommend Charles Schwab & Co., Inc. Advisor Services for our portfolio management program. We either invoice our advisory fee or, with the client’s written authorization, have the custodian deduct it from the account. Because of that fee-deduction authority, Form ADV Part 2A, Item 15 states that we’re deemed to have custody of client funds. Want to see how an account is set up? Ask us on the first call.
- No. Schwab is an independent, unaffiliated SEC-registered broker-dealer and a member of FINRA and SIPC. We take part in Schwab’s institutional program and receive some benefits through it, which we disclose in Form ADV Part 2A, Items 12 and 14. Ask us about it anytime. We’d rather you hear it from us.
- At least quarterly, from the custodian. The statements show all account activity, including any advisory fee deducted. We recommend that clients review them, and we may provide separate reports as needed. If a client has a question about a statement, our team will help you answer it.
- The firm either sends an invoice or, with the client’s written authorization, has the custodian deduct the fee directly from the client’s account, where the deduction appears on the custodian’s statement. Fees vary by service. Form CRS and Form ADV Part 2A have the details. Call 877-766-8488, and we’ll go through them with you.
- Yes. Clients may limit our discretionary authority by giving us restrictions or guidelines in writing, for example on the types of securities bought for the account. Send us the restriction in writing, and our team takes it from there.
Want the account work off your desk?
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