We are T2 Asset Management, LLC, an investment adviser registered with the Securities and Exchange Commission. Investment advisory and brokerage services and fees differ, and it is important for you to understand the 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. Our firm and financial professionals’ registration information are also publicly available on the Investor.gov website.
You can find additional information about our investment advisory services at Investor.gov/CRS. You may also request a printed copy of this Relationship Summary by contacting us at 888-354-8499 or via email to firstname.lastname@example.org.
We offer customized investment management and wealth planning services to retail investors. We offer advice on a full suite of securities described in Item 8 of our Form ADV Part 2A (“Disclosure Brochure”), including equities, fixed income, mutual funds, ETFs, options, and similar investments. Our services are generally provided on a discretionary basis, which means that we have the power to buy and sell securities for your account without your prior consent. This authority is usually unlimited and remains in effect until you revoke it. We may provide non-discretionary investment advice, where we make investment recommendations to you and you decide whether to implement the recommendation.
Some securities carry additional costs, such as mutual funds and ETFs. We do not give advice on any proprietary investment products. We usually review portfolios at least annually. However, we do monitor accounts on a continuous basis and conduct ad hoc reviews if you change your objectives or risk tolerance, upon significant market and economic events, or if we change our investment strategy.
T2 Asset Management requires a minimum account size of $100,000, which can be waived.
Advisory services are usually appropriate when you have a portfolio of securities for which you require ongoing advice. Investors who maintain few securities holdings and are not inclined to make changes to their portfolio are likely best suited for a traditional brokerage account with a FINRA-registered firm.
We recommend investments based upon your individual circumstances, financial situation, expectation of current and future cash needs, investment objective, and risk tolerance. In addition, we attempt to identify those investments in which we expect to yield an acceptable level of return given the amount of risk you’re willing to assume, taking into account the level of diversification and how different securities and asset classes may complement one another.
Our financial advisors have been in the financial services industry for several years and maintain the Series 65 exam qualification or a professional designation accepted by the applicable state regulator. You can find information on any professional designations of your financial advisor in the Form ADV Part 2B (“Brochure Supplement”) we provide you at the onset of the advisory relationship.
These qualifications assure that our professionals have met specific regulatory exam requirements to conduct investment activities (e.g., Series 65). In addition, professional certifications such as the CFP® and CFA® require successful passing of the certification exam as well as rigorous continuing education requirements.
Our quarterly fees are calculated as a percentage of the assets under our management, so our fees will rise and fall with the value of the assets we manage for you. As a result, we are economically incented to recommend that you place more assets in your account in order to increase the value of your portfolio, because as the value increases, so do our fees.
In addition to our fees, you will be charged transaction or asset-based fees by your custodian for its services. These fees vary depending on the custodian. Under a transaction fee arrangement, the more transactions effected in your account, the more fees you will pay, and high activity in your account does not assure positive portfolio performance. For custodians that charge their fees based upon a percentage of your assets, such fees may be more than would be the case if you are charged a transaction-based fee. Please be mindful of the effect of your portfolio size, the level of activity, and the rate of custodian asset-based pricing. Generally, large portfolios would be disadvantaged by paying an asset-based custodian fee versus a transaction-based fee. In addition to advisory and transaction fees, there are
additional fees such as postage and handling, transfer taxes, SEC fees for sales of securities, and similar fees. These additional fees are not material, but like advisory fees and custodian fees, they do have an adverse impact on the value of your portfolio over time. You can find more information about our fees and costs under Item 5 of our Disclosure Brochure, available at Investor.gov/CRS.
We charge asset-based fees, so our fees are calculated as a percentage of the value of your portfolio we manage. For example, a $10,000 investment at a 1% annual fee results in an annual deduction of $100 from your portfolio (meaning only $9,900 ends up invested). This means that it will take longer for you to realize positive returns than if no fees were charged. In this example, if you generated a 3% return, your net return would be 2%. Assuming nothing changes, it could take 18 months to realize a $300 return on your $10,000 investment.
You will pay fees and costs whether you 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.
When we act as your investment adviser, we have to act in your best interest and not put our interests ahead of yours. At the same time, the way we make money creates some conflicts of interest. You should understand and ask us about these conflicts because they can affect the investment advice we provide. Here are examples to help you understand what this means.
- The manager of T2 Asset Management controls and provides services to an affiliate investment adviser, Asbury Investment Management, which provides asset management services to T2 Asset Management’s clients.
- Certain T2 Asset Management professionals are (i) licensed to sell insurance, and (ii) registered with Purshe Kaplan & Sterling Investments, a FINRA-registered broker-dealer, both of which create conflicts of interest regarding compensation.
Conflicts of interest can incentivize us to put our interests ahead of yours. We manage these conflicts through disclosures and employing supervision procedures to ensure our financial advisors are acting in your best interest. If your financial advisor has outside business activities, it will be disclosed in their Brochure Supplement. Please see Items 10, 11, and 14 of our Disclosure Brochure as well as your financial advisor’s Brochure Supplement for additional information about conflicts of interest.
Our financial advisors are paid a salary and bonus. As a result, we are incentivized to recommend that you add additional assets to your account.
Your T2 Asset Management financial advisor will be your primary point of contact. However, administrative requests may be handled by an administrative assistant or client service professional.
Certain of our professionals are associated with Purshe Kaplan & Sterling Investments, a FINRA registered broker-dealer. All investment professionals are licensed with T2 Asset Management as investment adviser representatives.