Introduction
Portfolio Resources Advisor Group, Inc. (PRAG) is registered with the Securities and Exchange Commission (SEC) as an investment adviser. Brokerage and investment advisory services and fees differ, and it is important for you to understand these 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?
We offer investment advisory services to retail investors. We provide two types of services to retail clients:
•
Our financial planning services help clients organize their personal finances. Financial planning is an individualized service specifically designed to address and meet the needs of the client being served. Financial planning may cover topics such as, but not limited to, estate planning, tax planning, education funding planning, insurance and risk management planning, investment planning, retirement planning, philanthropic planning, and employee benefit planning.
• Our investment management services help clients develop an investment strategy designed to meet pre-determined objectives. We discuss a client’s investment goal and summarize the strategies employed in an Investment Policy Statement (IPS) or a Statement of Investment Selection (SIS) that each client receives. Investment management is continuous and on-going. Our investment management services are performed on a discretionary or non-discretionary basis. Most of our client’s accounts are on a discretionary basis, which means clients grant us the authority to buy and sell investments in their account without prior approval. On non-discretionary accounts, clients make the ultimate decision regarding the purchase or sale of investments. Our Investment Management Programs include Non-Wrap Fee and Wrap Fee Programs. On Non-Wrap Fee Programs, there is a separate custodial or transaction cost that is charged per transaction, besides the advisor (PRAG) fee and platform fee. On Wrap Fee Programs there is only one total fee that covers the cost of the portfolio manager, platform fees, transaction (custodial) costs, and the advisor (PRAG) fee. Therefore the wrap fee will be higher since it is a consolidated, total fee.
For additional information about our services please see our Form ADV Brochure, Part 2A, Items 4, 7, 13 and 16; and our Wrap Fee Program Brochure, Items 4 and 9, copies are available on our website at https://prginc.net/advisors.php |
Conversation Starter
Given my financial situation, should I choose an investment advisory service? Why or why not?
How will you choose investments to recommend to me?
What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean? |
|
What fees will I pay?
We charge two types of fees, and clients choose the service level that best suits their needs. Our fee options are as follows:
• Financial planning fees are assessed and due when services are rendered. It is a service fee that is either billed hourly or as a flat fee. Our fees for financial planning services are between $175 to $500 per hour depending on your specific request, or if per-project, to be negotiated based upon the specifics of the project.
• Investment management fees, are asset-based fees. They are due quarterly in advance. It is an on-going fee. Fees are debited directly from your investment account. Our fee options are as follows for our Investment Management Programs:
| |
Investment Management Program |
| |
Non-Wrap Fee |
Wrap Fee |
| Manager |
Managed directly by individual advisor representatives of PRAG |
Managed by firm sponsored or independent third-party managers in association with Management Platforms |
| What it is included |
Included: Advisor Fee and Cost of
Sub-Managers.
Not included: Custody Fees, Transactional Fees, Platform Fees,
Billing & Reporting Fees |
Included: Advisor Fee, Cost of Sub-Managers, Model Providers, Custody Fees, Transactional Fees, Platform Fees, Billing and Reporting Fees |
| Account Value |
Maximum Annual Non-Wrap Fee |
Maximum Annual Wrap Fee |
| First $1,000,000 |
1.50% |
2.75% |
| Next $4,000,000 |
1.25% |
2.50% |
| Above $5 million |
Fees are negotiable |
2.25% |
| Minimum Fees |
$50.00 annually |
Varies depending on specific Program and Sub-manager, ranges between $100-$500 annually |
Billing and
Reporting Fees |
Annual Billing and Reporting Fee |
|
| First $250,000 |
0.100% |
Included in the Wrap Fee |
| Next $250,000 |
0.095% |
| Next $500,000 |
0.085% |
| Next $1 million |
0.075% |
| Next $2 million |
0.055% |
|
You will pay fees whether your 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. There may be other fees and costs not included in the above, as account maintenance fees, fees related to mutual funds, ETFs, and variable annuities, wire fees, among others. For additional information, please see your advisory agreement and PRAG’s ADV Disclosure Brochure (Form ADV Part 2A Brochure, Item 5; or Wrap Fee Program Brochure, Item 4).
|
Conversation Starter
Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?
|
What are your legal obligations to me as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
We are held to a fiduciary standard that covers our entire investment advisory relationship with you. For example, we are required to monitor your portfolio, investment strategy and investments on an ongoing basis. A fiduciary standard means we must put your interests above our own and fully disclose all conflicts of interest, including the use of proprietary funds.
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 to you.
Here are some examples to help you understand what this means. For instance, we benefit from the advisory services we provide to you. The more of your money we manage under our investment management services the higher our absolute income. Therefore we have an incentive to encourage you to increase the assets in your account. We may also recommend certain securities, transactions, strategies, type of accounts, platforms or custodians that could result in higher income to us and/or our representatives. Also, some of our financial professionals are also registered as brokers and/or insurance agents through our affiliate Portfolio Resources Group. This may affect the type of account and investments recommended to you. For additional information please see PRAG’s ADV Disclosure Brochure (Form ADV Part 2A Brochure, Item 10; Wrap Fee Program Brochure, Item 9). |
Conversation Starter
How might your conflicts of interest affect me, and how will you address them?
|
|
|
How do your financial professionals make money?
The financial professionals at PRAG are paid as independent contractors based on the advisory services they render. We do not use sales-based awards to incentivize our financial professionals. None of our financial professional collect commissions or sales-based compensation from any third party or outside institution.
Do you or your financial professionals have a legal or disciplinary history?
Yes. Visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals. You can find more detailed information in our Form ADV, Parts 2A and 2B Brochures. A copy is available on our website at https://prginc.net/advisors.php.
|
Conversation Starter
As a financial professional, do you have any disciplinary history? For what type of conduct?
|
|
Where may I find additional information?
For additional information about our services, please search for our firm at adviserinfo.sec.gov. If you would like additional, up-to-date information or a copy of this disclosure, please call our offices at +1 (305) 372-0299, or contact us in writing at 800 Brickell Avenue, Suite 903, Miami, FL 33131.
|
|
Conversation Starter
Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?
|
|