«Haviland & Sams, LLC Form ADV Part 2A Investment Adviser Brochure September 2015 This brochure provides information about the qualifications and ...»
Item 1: Cover Page
Haviland & Sams, LLC
Form ADV Part 2A
Investment Adviser Brochure
This brochure provides information about the qualifications and business practices of Haviland & Sams,
LLC. If you have any questions about the contents of this brochure, please contact Benjamin B. Sams,
Owner/Managing Principal and Chief Compliance Officer, at 860.678.1414 or
email@example.com. The information in this brochure has not been approved or verified by the
United States Securities and Exchange Commission or by any state securities authority.
Additional information about Haviland & Sams, LLC is also available on the SEC’s website at www.adviserinfo.sec.gov. You may search this site using a unique identifying number, known as a CRD number, Haviland & Sams, LLC’s CRD Number is 127175.
nd 30 Stanford Drive, 2 Floor Farmington, CT 06032 860.678.1414 firstname.lastname@example.org www.havilandsams.com Item 2: Summary of Material Changes Annual Update In this Item of Haviland & Sams, LLC’s (Haviland & Sams or the Firm) Form ADV 2, the Firm is required to discuss any material changes that have been made to Form ADV since the last Annual Amendment, dated March 18, 2014.
Material Changes since the Last Update Since the last Annual Amendment filing, the Firm has the following material changes to
• Benjamin B. Sams is now the sole owner of the Firm.
Full Brochure Available Haviland & Sams’ Form ADV may be requested at any time, without charge by contacting Benjamin B. Sams, Owner, Managing Principal and Chief Compliance Officer, at 860.678.1414 or email@example.com.
2 Haviland & Sams, LLC Item 3: Table of Contents Item 1: Cover Page 1 Item 2: Summary of Material Changes 2 Item 4: Advisory Business 4 Item 5: Fees and Compensation 6 Item 6: Performance-Based Fees and Side-by-Side Management 8 Item 7: Types of Clients 8 Item 8: Methods of Analysis, Investment Strategies and Risk of Loss 8 Item 9: Disciplinary Information 10 Item 10: Other Financial Industry Activities and Affiliations 10 Item 11: Code of Ethics, Participation or Interest in Client Transactions and Personal Trading 11 Item 12: Brokerage Practi
3 Haviland & Sams, LLC Item 4: Advisory Business Firm Description and Types of Advisory Services Haviland & Sams is a financial advisory and consulting firm providing financial modeling and planning services for corporations, individuals and families, including business owners, professionals, corporate executives and those with independent resources.
Haviland & Sams also provides investment portfolio advisory services to our clients, which includes the selection of other advisors.
The Haviland Group was founded in 2003 and changed its name to Haviland & Sams in 2010.
Principal Owners Haviland & Sams is owned by Benjamin B. Sams.
Types of Advisory Services Haviland & Sams provides 3 distinct services - Wealth Management, Independent Investment Manager Search and Monitoring, and Ad Hoc Consulting.
Wealth Management Haviland & Sams provides its clients with a four-step process to evaluate current and future needs and to design strategies to assist in meeting those needs.
1. Protect - Evaluate areas of financial risk and, where appropriate, make suggestions for mitigating that risk. Provide business continuity planning and value realization strategies for owners of closely held businesses.
2. Plan For Growth - Develop an investment strategy that identifies the client's needs and risk tolerance and defines an appropriate investment policy statement.
This strategy may include recommendations for engaging independent investment managers to manage all or part of the client's investable assets.
3. Plan For Enjoyment - Help clients develop the financial values and habits necessary for a successful financial life, including the development of a prudent retirement strategy, charitable giving strategies, and a process for monitoring the ongoing success of the plan.
4. Plan For Perpetuation - Advise clients on the development of an estate plan that addresses asset distribution, estate administration, trust management techniques, income replacement, child custodial arrangements, and estate tax reduction strategies.
Haviland & Sams gathers required information through in-depth personal interviews and data collection. Information gathered includes a client's current financial status, future goals and attitudes towards risk. Related documents supplied by the client are 4 Haviland & Sams, LLC analyzed and appropriate strategies and recommendations are developed. Should a client agree to the recommendations contained in the plan, Haviland & Sams will work closely with the client and other appropriate advisers to assure complete implementation.
Additionally, Haviland & Sams provides advice on non-securities matters. Generally, this is in connection with the rendering of estate and insurance planning and business ownership issues.
Haviland & Sams will meet with the client periodically, and as needed throughout the year to review the client's situation and, if needed, suggest changes to the client's strategy.
Recommendations are not limited to any specific product or service offered by a brokerdealer or insurance company.
Independent Investment Manager Search and Monitoring Haviland & Sams may perform management searches and analysis of various independent investment managers for the purposes of managing the client's portfolio assets Based on a client's individual circumstances and needs, Haviland & Sams will determine, with the client, which independent investment manager's portfolio management services are appropriate for that client. Factors considered in making this determination include total asset value, management style, risk tolerance, the opinion of each client and the investment philosophy of the independent manager. Clients should refer to the independent investment manager's disclosure document for a full description of the services offered. Haviland & Sams will meet with the client on a regular basis, or as determined by the client, to review portfolio performance.
If Haviland & Sams believes that a particular independent investment manager is performing inadequately, or if Haviland & Sams believes that a different independent investment manager is more suitable for a client's needs, then Haviland & Sams may suggest that the client contract with a different independent investment manager.
Under this scenario, Haviland & Sams will assist the client in selecting a new independent investment manager and then monitor that independent investment manager's performance. However, any move to a new independent investment manager is solely at the discretion of the client.
Haviland & Sams works with two multiple investment manager platform programs:
Schwab Institutional, and Lockwood Financial Services, a subsidiary of The Bank of New York. Haviland & Sams also recommends independent investment managers who may not be on the platforms mentioned above.
Ad Hoc Consulting Haviland & Sams provides consulting services to business owners in the areas of ownership management, continuity planning and business value realization.
5 Haviland & Sams, LLC Tailored Relationships Haviland & Sams tailors investment advisory services to the individual needs of the client. The goals and objectives for each client are documented in an Investment Policy Statement that is prepared by Haviland & Sams and the client. Haviland & Sams clients are allowed to impose restrictions on the investments in their account. Haviland & Sams may accept any reasonable limitation or restriction to discretionary authority on the account placed by the client. All limitations and restrictions placed on accounts must be presented to Haviland & Sams in writing.
Wrap Fee Programs Haviland & Sams participates in three Wrap Fee Programs, Lockwood Separately Management Accounts, Lockwood Asset Allocation Portfolio and Lockwood Investment Strategies. The only significant difference between how Haviland & Sams manages wrap fee accounts versus other accounts is that wrap fee account trading is executed through a directed broker. Haviland & Sams receives a portion of the total wrap fee for its portfolio supervisory services. More detail on the wrap programs may be found in each program’s Form ADV Part 2A Appendix 1, which is available directly from the wrap fee program sponsor.
Client Assets Haviland & Sams does not directly manage client assets.
Item 5: Fees and Compensation
Compensation Haviland & Sams is compensated by charging a fixed fee, a percentage of advised assets, and in some cases, an hourly fee.
Haviland & Sams’ fee schedules are described below.
Compensation – Wealth Management Services Clients will be charged an annual fixed fee, typically ranging from $3,000 - $35,000, depending on the nature and complexity of each client's circumstances. Fees are charged quarterly in advance. Clients may request other schedules for payment.
Haviland & Sams may provide Wealth Management Services to clients of other professional organizations, including investment advisers. In these instances, Haviland & Sams will be paid either a fixed fee, or the fee will be stipulated as a percentage of assets under management, billed quarterly based on the value of the investments on the final day of each calendar quarter.
6 Haviland & Sams, LLC Compensation – Independent Investment Manager Search and Monitoring Clients whose assets are custodied at Schwab may be charged an annual asset-based fee of up to 1% payable quarterly in arrears. This fee is exclusive of management and transaction fees which may be charged by other investment managers and custodians.
Clients in the Lockwood wrap fee programs may be charged an annual asset-based fee up to 2% payable quarterly in advance. This fee includes all management and transaction fees which may be charged by other investment managers and custodians.
Compensation – Ad Hoc Consulting Clients may be charged hourly rates ranging up to $250. Haviland & Sams may ask for a retainer of up to 25% of the estimated fee at the start of the consulting service, with the balance due upon completion of the services. Haviland & Sams will not require that a client pay a retainer that it does not expect will be earned within six months.
Calculation and Payment The specific manner in which fees are charged by Haviland & Sams is established in a client’s written agreement with Haviland & Sams. Haviland & Sams will calculate fees in advance or arrears on a quarterly basis. Clients may elect to be invoiced directly for fees or to authorize Haviland & Sams to directly debit fees from client accounts.
Accounts initiated or terminated during a calendar quarter 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.
Agreement Terms A client may terminate the client agreement at any time by notifying Haviland & Sams in writing. All unearned fees will be refunded.
General Information on Compensation and Other Fees In certain circumstances, fees, account minimums and payment terms are negotiable depending on a client’s unique situation – such as the size of the aggregate related party portfolio size, family holdings, low cost basis securities, or certain passively advised investments and pre-existing relationships with clients. Certain clients may pay more or less than others depending on the amount of assets, type of portfolio, or the time involved, the degree of responsibility assumed, complexity of the engagement, special skills needed to solve problems, the application of experience and knowledge of the client’s situation.
Fees charged by Haviland & Sams are separate and distinct from advisory fees and expenses charged by independent investment managers or separate accounts in which client assets may be invested. A complete description of these fees and expenses may be found in each investment manager’s contract.
In addition to Haviland & Sams’ fees, clients may also incur certain charges imposed by third parties which may include the following: mutual fund or money market 12b-1 and 7 Haviland & Sams, LLC sub transfer fees; limited partnership management and incentive fees; and trade transaction fees or ticket fees, and other fees.
The client should review all fees to fully understand the total amount of fees and to evaluate the advisory services being provided.
Item 6: Performance-Based Fees and Side-by-Side Management
Neither Haviland & Sams nor any of its Supervised Persons (employees) accepts performance-based fees (fees based on a share of capital gains on or capital appreciation of the assets of a client).
Haviland & Sams does not use a performance-based fee structure because of the potential conflict of interest. Performance-based compensation may create an incentive for the adviser to recommend an investment that may carry a higher degree of risk to the client.
Item 7: Types of Clients
Types of Clients As described in Item 4, Haviland & Sams ‘clients include corporations, individuals and families, including business owners, professionals, corporate executives and those with independent resources.
Account Minimums Haviland & Sams does not require a minimum account size for opening or maintaining accounts.
Item 8: Methods of Analysis, Investment Strategies and Risk of Loss
Methods of Analysis and Investment Strategies Haviland & Sams acts as a strategist for the client, and rather than recommending specific securities investments, Haviland & Sams, LLC provides its clients with an investment strategy, asset allocation advice, and recommends the use of investment managers to determine specific investments to meet their strategy.
Haviland & Sams does not engage in analysis of publicly-traded securities. Haviland & Sams does not recommend specific individual securities, fixed income instruments or other investments.