Lorne Steinberg Wealth Management Inc. (LSWM) is an SEC registered investment adviser. Registration of an investment adviser does not imply any level of skill or training. There are other types of financial service professionals such as broker-dealers and it is important that you understand the differences.
The SEC provides free and simple tools that allow you to research firms and financial professionals at www.investor.gov/CRS, which also provides educational materials about investment advisers, broker-dealers and investing.
We offer investment advisory services to retail investors and specifically seek to generate and preserve long-term wealth through well-defined, active investment approaches. LSWM provides these investment management advisory services to our clients on a discretionary basis, which means that once client portfolio parameters and limitations are established, LSWM will make investment purchases and sales without prior consultation with the client.
Our minimum relationship size is $250,000, although certain exceptions may be permitted.
As part of our standard services, client portfolios are monitored and reviewed frequently based upon prevailing market conditions, business and world events and changing client circumstances. We also meet regularly with each of our clients to review all aspects of our relationship, including seeking to confirm the client’s goals and needs, portfolio performance, and a discussion of our outlook for the markets.
One of the most important strategic decisions we can assist clients with is recommending the appropriate asset allocation suitable to their particular investment goals and objectives. Our broad experience permits us to serve our clients in what we believe is a comprehensive manner, and we are not limited to only particular types of assets.
Our ADV Part 2A Items 4–7 describe our firm and services in greater detail: adviserinfo.sec.gov/firm/summary/290262.
LSWM charges advisory fees based on a percentage of the client assets under management. Fees are assessed quarterly in arrears based on a fee schedule with the annual rate ranging from 1.5% to 0.5% of your assets under management. Our current fee schedule is listed in our ADV Part 2A.
We base our management fees on a percentage of the market value of the assets in the client’s account. Clients may also incur custodial fees and brokerage/transaction costs. We also invest, or recommend that our clients invest, in mutual fund or exchange-traded-fund (ETF) shares and funds managed by us. Each such fund pays fees, borne by its investors, to the manager of the fund and to other service providers to the fund. For instance, in connection with LSWM’s management of its own funds, a performance fee and advisory fee may also apply to such investment.
As a result, a client whose account is invested in a fund will bear the client’s proportionate share of the fund’s fees and expenses and pay a management fee to us for the same investment. In many cases, the client could invest in the same fund without paying a fee to us, but would then not have the benefit of the advice, review and monitoring we provide. Clients should also be aware that LSWM has a financial incentive to increase its assets under management to increase its fees charged.
Our ADV Part 2A Items 4–6 describe our fees in greater detail: adviserinfo.sec.gov/firm/summary/290262.
Our ADV Part 2A Items 5 and 6 include additional information regarding the fees you will pay: adviserinfo.sec.gov/firm/summary/290262.
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means.
In exchange for commissions generated by discretionary trading activity, LSWM receives research services from a variety of brokerage firms. It is LSWM’s policy to restrict such compensation (termed “soft dollars”) to those products or services that enhance our firm’s ability to render quality advice and service to all of our clients.
Performance-based fees, such as the one charged to the Steinberg High Yield Fund, may create an incentive for our firm to make investments that are riskier or more speculative than would be the case absent a performance fee arrangement. In addition, performance fees, as well as asset-based fees, may vary among clients. Accordingly, clients are subject to conflicts of interest by the management of multiple accounts that follow similar or the same investment strategy. The conflict for the private funds presents itself at both the client and investor level. Such a conflict may create an incentive for us to favor one client over another (e.g., allocation of aggregated trades).
LSWM has policies and procedures reasonably designed to mitigate these conflicts. For example, LSWM monitors such conflicts by implementing “best execution” and trade allocation procedures as well as by maintaining a Code of Ethics. In addition, all accounts within a particular investment strategy are managed in accordance with the same or similar investment process irrespective of fee structure.
Our ADV Part 2A Items 4, 9, 10 and 14 describe our duties and conflicts in greater detail: adviserinfo.sec.gov/firm/summary/290262.
Portfolio managers are paid a salary plus a percentage of the fee revenues generated by their client group; as a result, portfolio managers have an incentive to increase client assets under management.
No. Neither LSWM nor its management persons have been involved in any legal or disciplinary events that would be material to a client’s or a prospective client’s evaluation of our advisory business.
LSWM welcomes the opportunity to further discuss our firm and its capabilities. Please call us at 1-866-876-9888 and ask to speak with one of our portfolio managers. You may also call us to request the most recent version of our Client Relationship Summary or our full Form ADV.
