The specific manner in which fees are charged by Vision Advisors is disclosed in the client’s Investment Management Agreement with Vision Advisors and the new account documents. Fees are deducted from the client’s account on a quarterly basis in arrears. Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon termination of any account, any unpaid fees will be due to Vision Advisors and payable on a prorated basis. Clients whose accounts are managed by a Vision IAR will pay Vision Advisors transaction costs associated with a non-wrap account in addition to the fee they pay to Vision Advisors for a Vision IAR to manage their individual account. Transaction fees will also be charged to all accounts by the broker/dealer where they are held.
The Equity Portfolio focuses primarily on long-term investing with a growth-oriented approach supported by proprietary trading methods to determine target prices. For some clients, the enhanced yield and a measure of downside protection is sought through closely monitored covered call option writing*. On the more conservative end of the spectrum, the Income Portfolio provides a steady income stream to investors in order to cover their cash flow needs. The Balanced Portfolio combines the strategies of both equity and fixed income. The Dividend Portfolio’s principle objective is to provide returns from a diversified group of companies that have an attractive dividend rate, but still maintain many growth characteristics. The Short Put Portfolio’s principle objective is to provide returns through earning premium income from writing put options on a select group of stocks that Vision believes will either maintain a stable price or increase in value. The Stock Put Writing Program’s principle objective is to achieve aggressive returns by employing a strategy of writing put options on a group of common stocks. The Stock Put Credit Spread Option Program’s principle objective is to achieve aggressive returns by employing a strategy of writing put spread options on a group of common stocks. Due to the additional risks involved with writing put options, this portfolio is only suitable for clients who understand and can handle the higher level of risk.
*Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options (with 1997 through 2012 supplements), November 2012 supplement and April 2015 supplement to Characteristics and Risks of Standardized Options. Besides being accessible via our Web site, copies of the Options Disclosure Document are available from your Vision sales representative, or by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606.
If an account is terminated in the middle of a quarter, the fee will be calculated based on the value of the account on the day of withdrawal, prorated for the number of days in the quarter the account was under management. The management fee is deducted from the account before distribution of account assets to the client. The value of the account itself will fluctuate with the current market conditions.
For more in detailed information about covered call options please click here.
The management team at Vision Investment Advisors, LLC consists of Howard Rothman, Chief Investment Officer, Managing Member and Chief Executive Officer and Steven Silver, Chief Operating Officer. For a more detailed description of the management team and their respective experience, please refer to Vision Advisors’ Form ADV Part 2A.
The Chief Investment Officer, Howard Rothman, makes all investment decisions.
Vision Advisors conducts its primary research from traditional and electronic information sources such as financial reports, SEC filings, the Bloomberg computer system, various rating services and nationally recognized research services such as Value Line and Standard & Poor’s. An emphasis is placed on a number of factors such as revenues and income growth, dominant position in its industry, large cap status, return on equity and companies which favor stock purchase programs.
Vision Advisors caters primarily to affluent individuals and their retirement accounts, family offices and family investment vehicles who seek an approach to capital appreciation by investing in established stocks with demonstrable prospects for growth coupled with a strategic covered call writing program. Vision Advisors’ investment programs are also suitable for institutional investors such as corporate pension plans, trusts, endowments and charitable organizations with similar investment objectives.
The Fixed Income Portfolio (taxable and non-taxable) is concentrated in preferred stocks, municipal bonds, U.S. Government securities and other debt instruments such as investment grade corporate bonds.
Although the portfolios should be viewed as long-term investments, your account remains liquid at all times. Should you need to liquidate your account, the entire process can be completed in no more than five days, absent abnormal market conditions.
Although Vision Advisors does not focus on any specific sector, Vision Advisors invests in what they believe to be the top tier stocks in each sector. Securities in the Equity Portfolio may represent several sectors of the economy, but generally will not be concentrated in any one sector or constitute more than 15% in any one issuer.
Based on the number of assets under management, a firm either registers with the SEC or registers with the states in which it conducts investment advisory business. Firms that have at least $25 Million in assets under management register with the SEC. Vision Investment Advisors is a SEC registered investment advisor.
The clearing firm, Vision Financial Markets, is a member of the Financial Industry Regulatory Authority (“FINRA”). Vision Brokerage Services and Vision Financial Markets are both also members of the Securities Investor Protection Corporation (“SIPC”), which acts as trustee in a missing asset case to recover funds. The statute that created the SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of $500,000, which includes a maximum of $250,000 on claims for cash.
Clients receive confirmations and statements directly from the clearing broker/dealer, which may be its affiliate Vision Financial Markets, which carries the accounts as a registered broker/dealer or other clearing broker/dealer. The statements will be sent on a monthly basis whenever there is activity in the account during the respective month and on a quarterly basis, regardless of any account activity. Clients receive confirmations directly from the clearing broker/dealer anytime a trade is done in their account. When the account is set up as an IRA account, then a custodian such as Equity Institutional or another qualified custodian will act as the IRA Custodian. Confirmations and statements will continue to be sent from the clearing broker/dealer and IRA account holders will also receive periodic account statements from the IRA custodian.
Clients receive a year-end tax statement (“1099” forms) issued by the clearing firm, which will summarize all the pertinent information necessary for tax preparation.
Any amount of margin or leverage will add both risk and opportunity. Vision Advisors will manage the account on a leveraged basis only if it concludes that the account holder is financially suitable for margin trading and if it is in line with the client’s specific goals and objectives. Assuming financial suitability requirements are met, a client may elect to leverage his or her account to a maximum of 50%. In any case, Vision Advisors recommends that any given account not be margined greater than 25% to 30%. A separate margin agreement needs to be completed to utilize margin.
Vision Advisors manages many types of qualified retirement-based accounts including Traditional IRAs, Roth IRAs, 401(k), 403(b), Keogh accounts, as well as pension plans.
- Domestic and foreign domiciled individual and joint accounts
- Trusts (including retirement based trusts, individual, and individual living)
- Corporate Accounts
- Retirement Accounts
Vision Advisors recommends that clients deposit at least $100,000 in their account. Clients who wish to deposit less than $100,000 will have less diversification, but may still be accommodated. New accounts below $10,000 managed by an Investment Adviser Representative will not be accepted. See Vision Investment Advisors’ Form ADV Part 2A for complete details.
If you have any questions that have not been answered here, please call 800.317.1994 or send us an e-mail.