Download Verdence Form CRS here:
Verdence Form CRS filed June 24 2020
Verdence Capital Advisors, LLC
June 24, 2020
Verdence Capital Advisors, LLC (“Verdence”, “we”, “us”) is an independent, private wealth advisory and multi-family office firm. We are registered as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”).
Services and fees offered by investment advisory firms like Verdence differ from those offered by brokerage firms and it is important for you to understand the differences. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
What investment services and advice can you provide me?
Scope of Services: We offer investment advisory services to retail investors. Our advisory services include investment management, financial planning, consulting, and wrap fee program sponsorship. Verdence advises clients in the daily activities and significant events that advance their financial lives. We begin by spending time learning your financial needs and life goals. We then work with you to create an appropriate financial path.
You may engage us to provide any or all of the following services: (a) investment management; (b) asset aggregation; (c) retirement and estate planning; (d) business exit and transition planning; (e) outsourced Chief Investment Officer; (f) advisory and financial team coordination; (g) family governance; and (h) philanthropic strategies. While we help clients with tax minimization strategies, we do not provide tax or legal advice.
Monitoring: As part of our standard investment advisory services, we monitor your account holdings on an ongoing basis. We review client accounts on a periodic basis, at least annually. We further conduct account reviews on an event driven basis, in response to changes in your investment objectives and/or financial situation, market corrections and upon request. We urge you to advise us of any changes in your objectives and financial situation.
Discretionary Authority: We accept discretionary authority to manage securities accounts on your behalf. This means we (or third-party managers we select for you) buy and sell securities determined to be in your best interest in an amount and in the timeframe that deemed to be appropriate. You may impose reasonable restrictions on our discretionary authority. Nearly all account transactions are executed with your custodian, although we are authorized to trade away from your custodian if deemed to be in your best interest.
Account Opening Requirements: You are required to sign a written Investment Advisory Agreement which authorizes us to manage your investments. You may cancel the Agreement at any time. We generally require a minimum annual fee of $10,000, although in our sole discretion, we may reduce or waive the minimum fee.
What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?
Please see our Form ADV Part 2A and related Appendix 1 for more information about our advisory services: https://verdence.com/adv-part-2a/.
What fees will I pay?
Fees are calculated as a percentage of assets under management including cash. Non-wrap fees are negotiable up to 1.3% annually. Wrap fees are negotiable up to 1.5% annually. Fees are billed quarterly in advance based on the value of account assets calculated on the last day of the prior quarter. Stand-alone financial planning and consulting service fees are negotiable, ranging from fixed fees of $15,000 to $25,000 to hourly fees of $250 to $500.
All fees paid to Verdence are separate and distinct from the fees and expenses charged by mutual funds and ETFs. In our non-wrap fee program, you are subject to fees and expenses charged by independent investment managers and limited partnerships. You are also responsible for all transaction, brokerage and custodial fees incurred as part of your portfolio management program. In our wrap fee program, all such fees are bundled wherein the asset-based fee includes most transaction costs and fees to the custodian and independent managers and therefore are higher than a typical asset-based advisory fee. The more assets we manage for you, the greater our fee and so we are incentivized to urge you to increase account assets.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. Please see our Form ADV Part 2A and related Appendix 1 for more information about fees and expenses: https://verdence.com/adv-part-2a/.
What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. In the chart below we present examples to help you understand what this means. Conflicts of Interest
Description of Conflict of Interest
Employee Personal Trading
Our employees buy or sell certain securities that are also recommended to clients. At times, they may buy or sell these securities at or around the same time as such securities are recommended to clients. This practice creates a situation where employees are positioned to benefit from the sale or purchase of those securities, which may present a conflict of interest.
Affiliate’s Private Funds
We may recommend, on a non-discretionary basis, that certain qualified clients consider allocating a portion of their investment assets to one or more private funds sponsored by our affiliate. Although the affiliate waives fees for such investments, Verdence advisory fees still apply. This may present a conflict of interest.