We manage our clients’ portfolios on a discretionary basis but we do not custody (possess) our clients’ assets.

This means we make all trading decisions to coincide with the investment objectives of our clients but the actual investments are held with a third party custodian.

We screen our custodians on a variety of attributes but our initial criteria must include both low cost and best price execution. Other attributes include technology and performance reporting.

A custodian protects investors from fraud in four major ways:

Since the investment adviser does not have custody of your assets, they never handle your checks, deposits and withdrawals directly.

Withdrawals must go to another account of yours or be sent by check to your address of record. Withdrawals that are to go elsewhere require your signature before approval is granted.

The custodians we use protect client accounts via the Securities Investor Protection Corporation (SIPC) for a maximum coverage of $500,000 with a cash sub-limit of $250,000.

In addition, most of our custodians provide additional coverage beyond SIPC limits via Lloyd’s of London and can provide protection up to an aggregate limit of $150 million.

As with all securities firms, this coverage provides protection against the insolvency of a custodian, and not against market loss.

A custodian will send monthly or quarterly statements to the client directly. They are required to report all activity in your account directly to the client.

Your adviser also might send you performance reports or account statements that they generate. This duplicate reporting system makes fraud easier to spot.

We use advanced technology to detect signature fraud.

With such technologies, if an investment adviser, their staff or anyone else attempts to forge your signature, it is likely to be detected immediately.