Is an Investment Advisory Account Right for You?
There are different ways you can get help with your investments. You should carefully consider which types of accounts and services are right for you.
Depending on your needs and investment objectives, we can provide you with services in an, investment advisory account. This document gives you a summary of the types of services we provide and how you pay. Please ask us for more information.
Investment Adviser Services Advisory Accounts
Types of Relationships and Services. Our accounts and services.
- If you open an advisory account, you will pay an on-going asset-based fee for our services. We will offer you advice on aregular basis. We will discuss your investment goals, design with you a strategy to achieve your investment goals, andregularly monitor your account. We will contact you (by phone or e- mail) at least annually, or more frequent as you mayrequest, to discuss your portfolio.
- You can choose an account that allows us to buy and sell investments in your account without asking you in advance (a“discretionary account”) or we may give you advice and you decide what investments to buy and sell (a “non-discretionary account”).
- We offer a wide range of investments, however, primarily use Exchange Traded Funds (“ETF”) in constructing clientportfolios. Additionally, we may offer equities, bonds, mutual funds for use in a client’s portfolio. Other firms could provide advice using other choices, some of which may be higher or lower costs.
- We offer fee-only discretionary and non-discretionary investment management services to individuals; high net worthindividuals, including family offices; and institutions, which primarily include qualified pension plans, Taft-Hartley plans,401(k) plans, foundations, and endowments.
- Additionally, Toroso provides fee-only non-discretionary pension consulting services to corporate retirement plans and non-discretionary outsourced chief investment officer (OCIO) consulting services to financial advisors.
- Furthermore, Toroso provides investment advisory and investment sub-advisory services to several ETFs, some of which alsoreceive non-advisory services from its affiliated firm, Tidal ETF Services LLC.
- Toroso also provides bespoke independent financial services to individual investors, retirement plan sponsors andcorporations. Toroso provides an ETF-focused, diversified asset allocation approach. Toroso generally provides these servicesvia its Toroso Advisors division, or Faro Advisory division (a sub-division of the Toroso Advisors division).
Our Obligations to You. We must abide by certain laws and regulations in our interactions with you.
- We are held to a fiduciary standard that covers our entire investment advisory relationship with you. For example, we arerequired to monitor your portfolio, investment strategy and investments on an ongoing basis.
- Our interests can conflict with your interests. We must eliminate these conflicts or tell you about them in a way you canunderstand, so that you can decide whether or not to agree to them.
Fees and Costs. Fees and costs affect the value of your account over time. Please ask your financial professional to give you personalized information on the fees and costs that you will pay.
- Asset-based fees. With respect to direct clients, advisory fees are paid in advance and typically deducted within fifteenbusiness days of the beginning of each calendar quarter directly from the client’s custodial account, based on the custodialmarket value as of the last day of the prior calendar quarter.
- Toroso offers its investment management services on a fee only basis and does not have a standard fee schedule. All feearrangements are negotiated on an individual basis with each direct client or with each wealth management and/or wrapfee platform, which then applies to all clients obtained through that platform.
- Direct high net worth individual clients and direct institutional clients will typically be charged an advisory fee in the range of
0.50% to 1.50% of assets under management on an annual basis. Wealth management and/or wrap fee platform clients will
also typically pay advisory fees in the range of 0.25% to 1.00% of assets under management on an annual basis, which is
separate from any advisory fees that the client may pay to an investment adviser, unaffiliated with Toroso, that
recommends and/or recommended that the client allocate some or all of their assets into a Toroso portfolio option and
separate from any advisory fees paid to a wealth management platform, if applicable.
- Some investments (such as mutual funds and variable annuities) impose additional fees that will reduce the value of your
investment over time. Also, with certain investments such as variable annuities, you may have to pay fees such as
“surrender charges” to sell the variable annuities, you may have to pay fees such as “surrender charges” to sell the
- Our fees vary and are negotiable. The amount you pay will depend, for example, on the services you receive and the amount of assets in your account.
- Fees for Toroso’s non-discretionary pension consulting services are negotiated on an individual basis with each pension plan
and/or the pension plan’s sponsor. Pension plan clients typically pay fees in the range of 0.10% to 1.25% of assets under
management on an annual basis, subject to a minimum annual fee, which is also negotiable, of $3,800 or $950 per quarter.
- All fees for non-discretionary exchange traded product portfolio consulting services are negotiated on an individual basis
with each consulting client, depending on the scope of the engagement.
- We also have other arrangements where we serve in a consulting capacity and paid a fixed fee or on an hourly rate.
Conflicts of Interest. We benefit from the services we provide to you.
- Tidal ETF Services, LLC (“Tidal”) is an affiliate of Toroso formed in September 2018 and is majority owned by Toroso. Toroso
may use, suggest or recommend its own services or the services of Tidal in connection with Toroso’s advisory business.
Specifically, Toroso may delegate administrative and consulting responsibilities to Tidal.
- Toroso owns a controlling interest in Volatility Shares LLC (“VS”) which was established in August 2019. VS is registered with
the NFA as a Commodity Pool Operator.
- In order to address conflicts of interest, we have in place a set of procedures (including a pre-clearing procedure) with respect
to transactions effected by our employees.
Additional Information. We encourage you to seek out additional information.
- Toroso generally acts under the DBA name “Toroso Asset Management” when providing the foregoing services.
- For additional information about our services, visit Investor.gov, our website (http://torosoinv.com/), and your account
agreement. For additional information on advisory services, see our Form ADV brochure on IAPD, on Investor.gov, or on our
website (https://reports.adviserinfo.sec.gov/reports/ADV/164201/PDF/164201.pdf) and any brochure supplement your
financial professional provides.
- To report a problem to the SEC, visit Investor.gov or call the SEC’s toll-free investor assistance line at (800) 732-0330.
Key Questions to Ask. Ask our financial professionals these key questions about our investment services
- How much would I expect to pay per year for an advisory account?
- What additional costs should I expect in connection with my account?
- What are the most common conflicts of interest in your advisory accounts?
- How will you choose investments to recommend for my account?
- How often will you monitor my account’s performance and offer investment advice?