FREQUENTLY ASKED QUESTIONS FREQUENTLY ASKED QUESTIONS

What is the difference between a RIA and a bank or brokerage firm?

As a Registered* Investment Advisor (RIA) with the Securities and Exchange Commission (SEC), we are held to the highest level of responsibility in the investment industry. Banks and brokerage firms are not held to the same standard of care to act solely in your best interest (this is known as a fiduciary standard).

Are you a “Hybrid” RIA?

No. Many RIA’s are also affiliated with brokerage firms, meaning they have dual registrations, where in some circumstances they act as a fiduciary, and in others they do not. We always act as a fiduciary. We are also not affiliated with any insurance companies, so we are not tempted to recommend insurance or annuity products for the sake of extra commissions.

Does an independent firm such as Leavell have the same access to investment securities as the largest banks and brokerage firms?

Yes. We have access to the full universe of traded investment securities needed to appropriately diversify portfolios.

Does Leavell take possession of assets on behalf of clients?

No. Generally, except for special circumstances as requested by the client, Leavell does not hold client assets (known as “custody”). Your assets will be held by an independent third-party custodian. As such, there is always an important separation between Leavell and the ownership of your assets, thereby mitigating a potential misappropriation of funds.

Who makes up the designated “team” working on our account?

You will have both an Investment Counselor and a Portfolio Manager working together with you. In addition, a dedicated client service representative and an operations team are also assigned to your account.

We charge a percentage fee based on the value of your assets under management. We are “fee-only advisors.”

Do you receive any form of compensation other than the fees we pay you?

No. Our single source of revenue is the fees we charge our clients. We receive no additional fees or expense reimbursements from any third party, except the management fee we receive from our two in-house mutual funds.

Who owns the firm?

We are an independent firm. Our owners are our employees, thus our success is directly tied to the success of our clients. No single employee owns more than 25% of the firm. This means we are able to make important and strategic decisions as partners. It also means the future of our firm is not reliant on the health or personal circumstances of any one individual.

What obligation are we under if the firm does not meet our expectations?

If you do not believe we are performing to your expectations, we ask only for a 30-day notice. Because we do not take possession of client assets and we do not require the use of any proprietary investment products, transitioning to another service provider is straightforward. Unlike some competitors, we do not charge a separate termination fee.

Does the firm take into consideration assets held elsewhere when developing an investment strategy for our portfolio?

Yes. One of the most important roles of the Investment Counselor is to comprehensively understand your current financial circumstances and your goals for the future.

As a client of Leavell, will your team work with our other trusted advisors to ensure the best decisions are being made on our behalf?

Yes. Another important role of the Investment Counselor is to seamlessly integrate our services with the services provided by your accountant and estate planning attorney. It is our team’s goal to stay current on your unique circumstances so we can communicate important financial details to others. This is especially important during times of family stress due to illness or death.

Our financial needs will change over time and perhaps suddenly. How timely is your team able to adjust to these changes?

We are always “on call” for our clients. We strive to help clients anticipate and adjust their financial plans ahead of ever-changing circumstances, but we stand ready to manage any changes that arise unexpectedly.

With volatile markets today, how do we avoid impulse reactions to jump in and out of the market?

That’s why we are here. Our clients feel less emotionally burdened because they know their investments are maintained by professionals with decades of market experience. While always honoring our clients’ wishes, we strive to help them remain focused on long term goals in the midst of short term volatility.