• 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.


  • 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.


  • Who makes the investment decisions?

    The principals of FRM are highly trained and experienced in security and portfolio analysis. Accordingly, they personally select all securities with respect to each client’s investment guidelines. Unlike managers at other firms that pass on the decision making to other managers or mutual funds, FRM has no such intermediaries. FRM is an independent firm with the sole purpose of serving its clients.


  • 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, but the client retains sole authority for the movement of assets into and out of the account.


  • Why does FRM require a third-party custodian?

    FRM requires a 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 leads the investment industry by setting the highest standards of ethics and professional excellence.


  • How do the principals of FRM manage their own 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. The principals and employees of FRM file a personal security transaction report each quarter to ensure that no violation of this restriction occurs.

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401 W. Capitol Ave, Suite 503 | Little Rock, AR 72201 | 501.604.3190


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