Conditions for Managing Accounts

RFG’s investment advisory services are available to individuals, high-net-worth individuals, families, trusts, estates, endowments, charitable organizations, corporations, and profit-sharing plans.  For Portfolio Management Services, there is no stated minimum Account size for starting or maintaining a client Account.  However, the Client must have financial circumstances that make it likely that he or she can benefit from the use of Vahick A. Yedgarian's services.

Vahick A. Yedgarian counsels each client in the creation of an investment policy statement, thereby tailoring its advisory services to the individual needs of each client.  This statement sets out certain asset classes that maybe utilized in the client’s account.  The investment policy statement further limits Vahick A. Yedgarian’s discretion by setting minimum and maximum inclusion levels for each asset class.  Within these limits, Vahick A. Yedgarian has the discretion to determine the exact amount of each asset class to include in a client’s portfolio and the specific mutual funds, bonds, exchange-traded funds, and stocks to be utilized within each asset class.  Vahick A. Yedgarian does not have the authority to withdraw funds from a client’s custodial account or to take custody.

Vahick A. Yedgarian does not provide or participate in wrap fee programs.

Here are my fees:

Asset Management

Assets under management Annual fee (as % of your portfolio)

Less than $5,000,000: 0.02083% per month, 0.25% annualized

Amounts over $5,000,000:  0.01666% per month, 0.20% annualized

Accounts $10,000,000 plus ($1 to $10,000,000 plus): 0.01250% per month, 0.15% annualized 

The fees are negotiable. Fees are paid monthly in arrears and are automatically debited from your account at Charles Schwab based on the Account valuation as of the end of each month. For more information, please see ADV Part 2

All fees are subject to negotiation. For example, some existing clients have negotiated free investment management services for IRA/SEP accounts or small accounts for their children. Lower fees for comparable services may be available from other sources.  RFG may waive or reduce the advisory fee at its discretion.  

The specific manner in which Vahick A. Yedgarian charges fees is established in the Client’s written Client Asset Management Agreement (CAMA) with Vahick A. Yedgarian.  RFG may waive or reduce the advisory fee at its discretion.  Vahick A. Yedgarian will bill his fees every month in arrears.  Fees will be calculated on a “per Client” basis rather than a “per Account” basis. The fees will be computed at the beginning of each calendar month based on the value of the CAM Account at the end of the preceding month.  Clients may also elect to be billed directly for fees or to authorize Vahick A. Yedgarian to directly debit fees from client accounts. Management fees shall be prorated for each capital contribution and withdrawal made during the applicable calendar month (with the exception of de minimis contributions and withdrawals).  Accounts initiated or terminated during a calendar month will be charged a prorated fee.  Upon termination of any account, any prepaid, unearned fees will be promptly refunded, and any earned, unpaid fees will be due and payable. The client has the right to terminate an agreement without penalty within five business days after entering into the agreement.

Vahick A. Yedgarian’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and expenses, which shall be incurred by the client.  Clients may incur certain charges imposed by custodians, brokers, third-party investment, and other third parties, such as fees charged by managers, custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer, and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds and exchange-traded funds also charge internal management fees, which are disclosed in a fund’s prospectus. Such charges, fees, and commissions are exclusive of and in addition to Vahick A. Yedgarian’s fee, and Vahick A. Yedgarian shall not receive any portion of these commissions, fees, and costs.

Investing in securities involves risk of loss that clients should be prepared to bear.

Past performance does not guarantee future results.  The value of your investment may stay unchanged, increase, decrease, or result in a total loss of your investment.

All investments involve risks, including the possible loss of principal. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging markets, of which frontier markets are a subset, involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Because these frameworks are typically even less developed in frontier markets, as well as various factors including the increased potential for extreme price volatility, illiquidity, trade barriers and exchange controls, the risks associated with emerging markets are magnified in frontier markets. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.

Financial Planning Fees and Compensation

Fee Schedule for Financial Planning and Financial Advice. 

Financial Plan

The cost of a one-time financial plan can vary based on the specifics of each individual's situation. Half of the fee is payable upon signing of this Agreement and the balance upon delivery of the written Plan. Please see ADV Part 2

Financial Advice

I also offer financial advisory services at an hourly rate of $600.00. Please see ADV Part 2

An hourly rate of $600 is charged for the above planning and analysis activities.  The total financial planning fees vary.  The actual rate is disclosed in the Financial Planning Agreement.  An estimate of the complexity and completeness of the Client’s planning needs are made during the initial no-obligation office consultation.  The Client is quoted a firm fixed price at that time; the fee is negotiable.  Comprehensive financial planning generally requires 15 hours (15 x $600 = $9,000) to 30 hours (30 x $600 = $18,000) whereas planning in only one or two areas may require only a fraction of this amount.

Compensation Payment for Financial Planning. 

Financial Planning fees are payable one-half at the time of signing the Financial Planning Agreement (Agreement) and one-half at the time the plan is presented. The Agreement terminates upon presentation of the written plan. An agreement for Financial Planning services may be canceled at any time, by either party, for any reason, upon receipt of written notice. Upon termination of the Agreement, any prepaid, unearned fees will be promptly refunded and any earned, unpaid fees will be due and payable.  Similar Services for lower or higher fees may be available elsewhere.

Performance-Based Fees and Side-By-Side Management

Performance-Based Fees and Side-By-Side Management
Vahick A. Yedgarian does not charge any performance-based fees (fees based on a share of capital gains on or capital appreciation of the assets of a client).

Client Referral and Other Compensation

This is not applicable as Vahick A. Yedgarian does not accept or give compensation in any form for client referrals.

Types of Clients

Vahick A. Yedgarian provides portfolio management services to individuals, high-net-worth individuals, families, trusts, estates, endowments, charitable organizations, corporations, and profit-sharing plans for a percentage of assets under management.

There are no stated minimum dollar amounts for starting or maintaining a Client account.  However, the Client must have financial circumstances that make it likely that he or she can benefit from the use of Vahick A. Yedgarian's services. 

Methods of Analysis, Investment Strategies, and Risk of Loss

As a financial planner, Vahick A. Yedgarian’s advice is based on:
•    Newspapers and Magazines
•    Independent Research Materials
•    Ratings Agency Services
•    Annual Reports
•    Prospectuses
•    Filings with the Securities and Exchange Commission Press Releases.

The broad-based written financial plan typically prepared for clients of Vahick A. Yedgarian; could include advice on income, gift and estate taxes, purchase sale, or retention of various forms of insurance; purchase, sale or retention of other assets; college education planning, retirement or analysis pertaining to securities.

By its nature, financial planning looks to the long-term.  After we make certain that the Client’s short-term cash needs, emergency fund, and insurance coverage, are satisfactory, we design investment strategies to help achieve his or her financial goals.

The investment strategies used to implement any investment advice given to clients can include (i) Long-term purchases - securities held at least a year.  (ii) Short-term purchases - securities sold within a year. (iii) Trading - securities sold within 30 days. (iv.) Short sales (v) Margin transactions. (vi.) Option writing, including covered options.
Investing in securities involves the risk of loss that clients should be prepared to bear.
Financial RFG works with each client to agree upon the appropriate asset allocation based on the following considerations:

•    Income and liquidity requirements
•    Investment time horizon
•    Risk profile
•    Financial goals
•    Special needs

The investment strategies we use to implement any advice given to clients include the following: Long-term purchases (securities held at least one year), short-term purchases (securities held less than one year), and trading (securities sold within 30 days).  Because these types of investment strategies involve additional degrees of risk, they will only be recommended when consistent with the client’s stated investment objectives and risk tolerance.

RFG implements a disciplined approach to total portfolio management and diversification using the following tools:

•    Exchange-listed Securities
•    Corporate Debt Securities (Other Than Commercial Paper)
•    Certificates of Deposits
•    Municipal Securities
•    Mutual Fund Shares
•    United States Government Securities
•    Exchange Traded Funds (ETFs)

Investing in securities involves risk of loss that clients should be prepared to bear.

Past performance does not guarantee future results.  The value of your investment may stay unchanged, increase, decrease, or result in a total loss of your investment.

All investments involve risks, including the possible loss of principal. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging markets, of which frontier markets are a subset, involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Because these frameworks are typically even less developed in frontier markets, as well as various factors including the increased potential for extreme price volatility, illiquidity, trade barriers and exchange controls, the risks associated with emerging markets are magnified in frontier markets. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.

Review of Accounts

Accounts managed by RFG are monitored regularly and reviewed on at least a quarterly basis by the client’s Adviser.  Accounts are reviewed for consistency with the individual client’s objectives.  More frequent reviews may be triggered by changes in the client’s needs and circumstances, the client’s risk tolerance, events related to the issuer of a security, or market, economic, or political events.  We offer to meet with clients monthly.

The reviewer is Vahick A. Yedgarian.  Vahick A. Yedgarian’s review is governed by the account’s statement of investment policy.  All current accounts are reviewed in this manner.

Investing in securities involves risk of loss that clients should be prepared to bear.

Past performance does not guarantee future results.  The value of your investment may stay unchanged, increase, decrease, or result in a total loss of your investment.

All investments involve risks, including the possible loss of principal. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging markets, of which frontier markets are a subset, involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Because these frameworks are typically even less developed in frontier markets, as well as various factors including the increased potential for extreme price volatility, illiquidity, trade barriers and exchange controls, the risks associated with emerging markets are magnified in frontier markets. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.

Investment Discretion

When selecting securities and determining amounts, Vahick A. Yedgarian observes the investment policies, limitations, and restrictions of the clients it advises. Vahick A. Yedgarian counsels each client in creating an investment policy statement, thereby tailoring its advisory services to each client's individual needs.  This statement sets out certain asset classes that maybe utilized in the client's account.  The investment policy statement further limits Vahick A. Yedgarian's discretion by setting minimum and maximum inclusion levels for each asset class.  Within these limits, Vahick A. Yedgarian, has the discretion to determine the exact amount of each asset class to include in a client's portfolio and the specific mutual funds, bonds, exchange-traded funds, and stocks to be utilized within each asset class. Vahick A. Yedgarian does not have the authority to withdraw funds from a client's custodial account or to take custody. Vahick A. Yedgarian does not provide or participate in wrap fee programs.  Vahick A. Yedgarian’s authority to trade securities may also be limited by certain federal securities and tax laws that require diversification of investments and favor the holding of investments once made.

Investment guidelines and restrictions must be provided to Vahick A. Yedgarian in writing.  Clients always retain individual ownership of all securities.

Investing in securities involves risk of loss that clients should be prepared to bear.

Past performance does not guarantee future results.  The value of your investment may stay unchanged, increase, decrease, or result in a total loss of your investment.

All investments involve risks, including the possible loss of principal. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging markets, of which frontier markets are a subset, involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Because these frameworks are typically even less developed in frontier markets, as well as various factors including the increased potential for extreme price volatility, illiquidity, trade barriers and exchange controls, the risks associated with emerging markets are magnified in frontier markets. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.

Custody

If a client chooses to implement Vahick A. Yedgarian’s advice, Vahick A. Yedgarian will utilize the Custodian and Brokerage services provided by Charles Schwab & Co., Inc. Member SIPC. Transaction charges are involved when purchasing investments, and the client will be notified of all charges before the execution of any trade.

Clients should receive at least quarterly statements from the broker-dealer, bank, or other qualified custodians who hold and maintain the client’s investment assets.  Vahick A. Yedgarian urges clients to carefully review such statements and compare such official custodial records to the account statements we may provide.  Our statements may vary from custodial statements based on accounting procedures, reporting dates, or valuation methodologies of certain securities.

Voting Client Securities

As a matter of firm policy and practice, Vahick A. Yedgarian does not have any authority and does not vote proxies on behalf of advisory clients. Clients retain the responsibility for receiving and voting proxies for any and all securities maintained in client portfolios. Vahick A. Yedgarian may provide advice to clients regarding the clients’ voting of proxies.

Brokerage Recommendations

Vahick A. Yedgarian uses the Custodian and Brokerage services provided by Charles Schwab & Co., Inc. Member SIPC. (Custodian) for his clients’ accounts because of the excellent service and reasonableness of the transaction fees charged by the Custodian, which is comparable to some other well-known custodians.  Vahick A. Yedgarian does not receive research and or “soft dollar benefits.”

Investing in securities involves risk of loss that clients should be prepared to bear.

Past performance does not guarantee future results.  The value of your investment may stay unchanged, increase, decrease, or result in a total loss of your investment.

All investments involve risks, including the possible loss of principal. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging markets, of which frontier markets are a subset, involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Because these frameworks are typically even less developed in frontier markets, as well as various factors including the increased potential for extreme price volatility, illiquidity, trade barriers and exchange controls, the risks associated with emerging markets are magnified in frontier markets. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.

Requirement for State-Registered Advisors