PORTFOLIO CONSULTING SERVICES TO REDUCE UNCOMPENSATED RISK (UCR)
PFA employs a multi-stage or phased approach to help investment advisors, investors, and fiduciaries increase returns and reduce volatility while complying with prudent diversification standards through the reasonable reduction in UCR
STAGE I – Portfolio Assessment Report: A low-cost tool that passes your portfolio through two screening tests to identify if any hidden diversification problems existing inside your portfolio during the trailing 1-year period ($375).
STAGE II – An In-depth Comprehensive Review: An in depth analysis and report on the portfolio’s diversification performance during the trailing 1-year period including the identification and isolation of “bad apple assets” that overpowered UCR removal efforts. The analysis also identifies what modifications to the portfolio, if made, would have increased returns and reduced volatility while remediating the portfolio into a compliant level of UCR reduction ($1,500).
STAGE III – Assist with Establishing a Forward Looking Plan to Reduce UCR to Compliant Levels: With the assistance of our patented algorithms, PFA’s experts guide you and/or your advisor through our proprietary process that maximizes UCR reduction without changing your portfolio’s asset allocation or levels of Compensated Risk (CR). Client determines the portfolio’s final CR/UCR asset allocation after analyzing the results. PFA provides a written opinion once the final plan has been established and implemented which states that UCR is prudently and reasonably reduced and that an ongoing plan is in place to prudently manage UCR. PFA may supply suggested addendum(s) to your portfolio’s Investment Policy Statement (IPS) that establishes UCR monitoring metrics for future periods. (Fixed fee quoted before services provided).
STAGE IV – Monitoring Services:– Screening – Rebalancing – On-going Compliance. Periodically evaluate for actual UCR reduction and suggestions for UCR reduction counterbalancing changes in economic and/or political events. Screening would be the first step ($375) and if suggested then a Comprehensive Review ($1,500). Then rebalancing through combining the client’s changes in CR Asset Allocation with PFA’s changes derived from UCR asymmetrical techniques in our overlay. Client determines the final CR/UCR asset allocation. An updated opinion letter and changes in the procedural process and IPS is issued if required (provided at a reasonably Fixed fee based on the circumstances).
OTHER SERVICES – In addition, we also offer Ad Hoc Fiduciary Compliance Consultation (1/2-hour consultation: $225; one hour consultation: $295.) Also, client can contract for more frequent screening at costs as low as $250 per screening result. Once in place and operating effectively and efficiently the client may want to bring the UCR process in-house which can be arranged through a licensing process which includes on-going training and assistance by PFA.
SEE ILLUSTRATIONS OF SCREENING AND COMPREHENSIVE REPORTS
GO TO PAGE 6 comments on ATTACHMENTS A-G
NOTE: PFA, BEN and STEWART are not Registered Investment Advisers. BEN VERNAZZA CPA/PFS TEP emeritus has been a CPA for 57 years. BEN was an investment adviser for 40 years. His partner STEWART FRANK CPA/PFS AIFA has been a CPA for 55 years, and is a nationally recognized Subject Matter Expert in the area of Investment Fiduciary Compliance and is serving a second term as Special Consultant to the AICPA Personal Financial Planning Fiduciary Task Force.