Does FRM register with any regulatory body?
Because of the size of assets under management, FRM is registered with the Securities and Exchange Commission (SEC). Firms that manage less than $25 million are required to register with their state securities department.
What differentiates an investment adviser from a broker?
The major difference lies in the client relationship. Brokers are typically paid for transactions between two parties. The greater the number of trades a client makes, the more the broker will make in commissions. Consequently, trades will always benefit the broker but they do not always benefit the client. In contrast, an investment adviser is usually paid a fee tied to the market value of the assets under management. As a result, the interest of the client and the adviser are much more closely aligned. Additionally, the standard of care required for investment advisers is that of a fiduciary, putting the client's interests ahead of the adviser's interests. This "fiduciary" standard is a more strict legal standard of care than the "suitability" standard to which brokers adhere.
How is FRM compensated?
FRM is compensated through separate fee structures (equity and fixed income) designed to closely align its interests with its clients. Fees are charged on a quarterly basis in arrears based on the client's quarter-ending asset values.
What services does FRM offer?
FRM is a discretionary manager of equity, fixed income, and balanced portfolios with a value orientation.
What does it mean that FRM has "discretion" over an account?
FRM is the sole decision maker for the assets in the client’s account, and has the discretion to make investment choices without the client's approval on each individual investment. However, the client retains sole authority for the movement of assets into and out of the account.
Who makes the investment decisions?
FRM's investment team members are highly trained and experienced in security and portfolio analysis. Accordingly, they personally select all securities with respect to each client’s investment guidelines so there are no other intermediaries making the actual investing decisions as with mutual funds. FRM is an independent firm with the sole purpose of serving its clients.
How do the principals of FRM manage their own personal assets?
The principals of FRM invest in the same securities as their clients with one over-riding restriction. They only purchase or sell a security after all of their clients have had an opportunity to purchase or sell that security first. Our personal investment policy ensures that our team is not spending their time preoccupied with personal investments that distract and add no value to our clients. The principals and employees of FRM file a personal security transaction report each quarter to ensure that there are no violations of this restriction.
Why does FRM require a third party custodian?
FRM requires a qualified, third party custodian to hold all client assets for independent accounting and safekeeping.
What is the Chartered Financial Analyst (CFA) designation?
Chartered Financial Analyst is a professional designation earned by candidates that have passed a series of rigorous examinations measuring their competence and integrity. Awarded by the CFA Institute, it is one of the fastest growing professional credentials in the world and is a globally recognized standard. The CFA Institute mission statement is "To lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society."
How may I request more information?
We would love to share more information about our firm and services. You may contact us using the "Contact Us" tab above or by reaching out directly to a member of our team. You may also click the following links to download our Form ADV or Form CRS or find more information about our company at https://adviserinfo.sec.gov/.