Investment Management Services

Aquarius Financial is a California Registered Investment Advisor providing fee‐only investment management for individuals and families from all walks of life. Fee‐only means that we do not earn commission from the sale of securities; instead we are compensated by asset-based fees for investment management services, and hourly fees for financial planning services. Associated persons may earn commissions on sale of insurance products.

$250,000 account minimum. Contact Michael Grodsky if you are interested in investment management services.

Michael Grodsky, Principal, Accredited Investment Fiduciary
Aquarius Financial
email: michael@aquariusfinancial.com
Phone: (323) 293-6800
Fax: (888) 241-2127

The Fiduciary Standard:  The firm holds itself to a fiduciary standard, which means Aquarius Financial and its associates will act in the utmost good faith and perform in a manner believed to be in the best interest of its clients. As investment advisors we are legally required to put you, the client, first. This sets us apart from investment brokers, who are held to a lower “suitability” standard and are not legally required to place their clients’ interests ahead of their own, or to disclose their conflicts of interest involving their clients’ transactions.

Our primary resource for understanding our fiduciary responsibilities and discharging them properly include “Prudent Practices for Investment Advisors; Defining a Global Fiduciary Standard of Excellence for Investment Advisors” (U.S. Edition), written by Fiduciary 360, and other documents, training and continuing professional education provided by Fiduciary 360, the Foundation for Fiduciary Studies, as well as applicable laws and regulations.

Service. We assist clients in developing an investment portfolio based on current needs, financial goals, and personal/organizational values. Our referral network includes specialists in financial planning, taxation, estate planning, insurance, and other specialty areas that may be critical to a client’s financial health. We do not earn any compensation as a result of referring clients to outside professionals.

Selection. One size does not fit all. Aquarius Financial offers a variety of fee-based investment options, each designed to best meet the needs of specific types of clients.

Objectivity. We are paid to provide clients with objective, professional advice and prompt service. Fees for account management are generally based on assets under management in the client account. As a result, the client’s interests and those of the network advisor and Aquarius Financial are closely related.

Reasonable Cost. Through special arrangements with select service providers, Aquarius Financial clients receive low cost custodial and transaction services. Our fees are flexible, competitive, and clearly understandable, allowing clients to estimate their total costs in advance.

Access. Our clients have access to a broad range of investment managers, socially screened mutual funds, and other investment opportunities.

Investment Management Services:  We may engage the services of unaffiliated third-party money managers and/or separate account managers. We monitor the performance of the selected managers. If we determine that a particular manager is not providing acceptable management services to the client, or is not managing the client’s portfolio in a manner consistent with the client’s IPS (Investment Policy Statement), we may recommend another manager to the client.

We choose asset managers with a long-term orientation, which our clients generally share. Our clients are investors who want to avoid making big mistakes, not those who are willing to take big risks in hopes of achieving outsized gains. We do not offer recommendations concerning futures, short selling, or exotic derivatives.

If you engage us for investment management, we will assist you in developing an asset allocation strategy or investment policy statement we believe is appropriate for your particular investment objectives and tolerance for risk. Clients retain absolute discretion over all implementation decisions, and are free to accept or reject any recommendation made by the firm.

On behalf of our clients, we may engage the services of unaffiliated third-party, fee-only financial planners who receive compensation from hourly or per-project fees.

Financial Planning Services:  We offer hourly, as‐needed financial planning and investment consultation services that do not involve the direct management of your portfolio. Under this type of agreement, we would be engaged exclusively to provide you with incidental financial planning and investment advice, and you could implement the plan and/or advice independently or through another advisor.

These financial planning and investment consultation services are often broad based – looking at a client’s overall financial situation, needs and objectives, and developing a financial plan that is expansive in scope. Sometimes, however, a client prefers to focus only on certain aspects of their financial situation, rather than on his or her overall financial circumstances and long‐term goals. Working within these limitations means that we may not be able to address other important aspects of a client’s overall financial situation.

We typically utilize a long-term investment perspective. If you engage us for investment consultation, we may assist you in developing an asset allocation strategy or investment policy statement we believe is appropriate for your particular investment objectives and tolerance for risk. Clients retain absolute discretion over all implementation decisions, and are free to accept or reject any recommendation made by the firm.

Financial planning is a comprehensive evaluation of a client’s current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans. Through the financial planning process, all questions, information, and analysis are considered as they impact and are impacted by the entire financial and life situation of the client.

Required information is gathered through in-depth personal interviews, including the client’s current financial status, tax status, future goals, returns objectives, and attitudes towards risk. The financial planner will review documents supplied by the client, including a questionnaire completed by the client, and prepares a written report for the Advisor and client. Financial Planning recommendations are not limited to any specific product or service, and are generic nature. In consultation with the client the Advisor will assist in carrying out the objectives of the financial plan. Implementation of financial plan recommendations is entirely at the client’s discretion.

Unless a written agreement is currently in place between the firm and the client that specifically identifies an “annual financial consulting program,” it is the client’s responsibility to contact us for additional services once the initial engagement has concluded. The firm is not obligated to monitor the accounts of incidental services clients, provide ongoing reviews and updates, or otherwise provide future services unless the client specifically requests such services and the firm agrees. Such services may be offered under a new or amended agreement.

Service Agreement:  Should you wish to engage Aquarius Financial for its services, we must execute a written client agreement. Once a client agreement is in effect, further discussion takes place to obtain additional information and clarification on your financial needs, goals, current holdings, and other information needed for the firm to analyze your situation and offer advice and planning. Financial advice and/or plans are based upon the information you or your legal agent provide, and reflect your financial situation at the time the plan is presented. In performing its services the firm may, but is not required to, verify any information received from you or from your legal agents.

It remains each client’s responsibility to promptly notify us if there is any change in his or her financial situation or investment objectives for the purpose of evaluating or revising the firm’s previous recommendations.

If you enter into an agreement with us, either you or we may terminate the agreement at any time, with a pro-rata refund of monies for any advance payments, less any fees due for financial planning services already delivered. For more information see Item 5 – Fees and Compensation.

Our ability to provide the best service and advice depends on access to current and accurate information about your situation and objectives. Accordingly, our clients are expected to provide an adequate level of information and supporting documentation to us throughout the term of the engagement, including but not limited to: source of funds; income levels; investing preferences; long-term goals; and the client’s (or legal agent’s) authority to act on behalf of the account. This information helps us determine the appropriateness of our investment strategy for the client or account.

Investment Management fees:  Aquarius Financial is a fee-only investment advisory practice, and therefore does not receive payment for any investment product purchases or sales, including asset-based sales charges or service fees from the sale of mutual funds.  No commissions or remuneration from any third parties are accepted, either on a soft dollar basis or otherwise. No referral fees are paid to, or accepted from, third parties. See Item 10 for information about commissions that may be earned by associated persons for sale of insurance products.

Annualized Investment Management Fees
On the first	$250,000	1.50%
On the next	$250,000	1.35%
On the next	$500,000	1.20%
On the next	$1,000,000	1.00%
On the next	$1,000,000	0.80%
On the next	$2,000,000	0.75%
On the next	$5,000,000	0.65%
On the next	$10,000,000 and more	0.55%

 

Aquarius Financial has a $250,000 account minimum for this service. Therefore, the minimum annual fee for investment management is $3,750. Accounts may be aggregated to meet this minimum, and all accounts represented by one individual or a married or unmarried couple, are combined for fee purposes. However, this consideration is not extended to other client family members who reside at a different address or who have substantially different investment parameters.

If the client’s assets are below $250,000, they are charged the minimum quarterly fee of $937.50. We may waive this minimum requirement under certain circumstances.

Our investment management fees cover active account management, monitoring, and rebalancing. In addition, the firm may provide certain financial-planning services as part of this ongoing relationship. Such services depend upon the client’s needs, but generally include a retirement security analysis and other analyses related to the client’s current financial circumstances. At no time will the firm provide tax or legal advice.