ABOUT BLUE ROCK FINANCIAL SERVICES, INC.
Blue Rock Financial Services, Inc. is a Registered Investment Advisor and is incorporated under the laws of the state of Oregon. Michael Harris is the owner and currently the sole advisor of Blue Rock Financial Services. The business of Blue Rock Financial Services is to provide financial planning and investment management services to individuals, trustees of personal trusts, and charitable organizations.
Michael Harris earned a Bachelor of Science in Finance from the California State University at Chico in 1986. In 1997, he earned the Certified Trust and Financial Advisor designation. In 2006, he earned the CERTIFIED FINANCIAL PLANNERTMcertification.
Mr. Harris was employed for 13 years as a Vice President and Trust Officer for the Private Client Group of U.S. Bank, N.A. He managed and administered trusts and retirement plans for a variety of clients in the southern Oregon area during this time. Prior to that time he was a licensed broker for Edward Jones & Co. in Eugene, Oregon.
Affiliations With Other Firms
Blue Rock Financial Services, Inc. has an agreement with TD Ameritrade, and utilizes TD's custodial services in the management of the firm's client accounts. Other than this relationship, neither Blue Rock Financial Services, Inc. nor Michael Harris has any affiliation with any other firm providing investment services or advice.
Participation or Interest in Client Transactions
Michael Harris is not a principal, broker, agent or partner in, with or for any investment vehicle he may recommend to clients. He may purchase or sell the same investment products recommended to his clients in his own accounts, and will disclose this fact prior to purchasing them for a client. As a CERTIFIED FINANCIAL PLANNERTM certificant, Mr. Harris will adhere to the CFP® Code of Ethics, and will provide a complete copy of this document to any client or prospect who requests one.
Blue Rock Financial Services, Inc. holds itself out as a "fee only" financial services provider. This means that the firm derives no revenue from commissions or loads based on product sales. Compensation is based either on a fixed or hourly charge for financial planning services or on a percentage of assets under management for investment advisory services, based on the fee schedule currently in effect. Neither Blue Rock Financial Services, Inc. nor Michael Harris receives any compensation from other individuals or organizations in exchange for providing advice to clients. Compensation is not provided to other individuals in exchange for client referrals.
Financial planning services will be offered by the firm to interested individuals. Compensation for these services is based on a fixed or hourly fee for analysis and recommendations. In general, an introductory consultation will be conducted at no charge to the prospect in order to determine if the firm's services are needed or desired.
Investment management services will be provided to those individuals, trusts, etc. with a minimum asset level of $250,000. Some situations may justify a lower initial asset level, such as if investable assets are not yet available, or due to a family relationship. Compensation for these services is based on a percentage of assets under management, according to the fee schedule currently in effect for the firm. It is anticipated that investment management will constitute approximately 90% of Blue Rock Financial Services, Inc.'s activities.
Mr. Harris' philosophy of investment management is based on the belief that it is not likely for an active manager to outperform the financial markets in the long run and that ultimately, an investor's return will be in direct correlation with the level of risk that investor is willing to assume. Based on this philosophy, the approach used by Blue Rock Financial Services will be predominately based on diversified, passive management on the equity side, with income vehicles used based on a client's circumstances (e.g., bonds, tax-free funds, certificates of deposit, etc.). In general, research on individual stocks will be offered on a limited basis, although individual issues shall be held based on a client's request or for tax purposes.
Research to support recommended vehicles will come from trade journals, financial publications, academic studies, and such organizations as Morningstar. The guiding principles of the firm will be asset diversification and minimizing costs (including taxes and administrative fees) in order to maximize long-term return. Client education will be an integral part of the ultimate success of this approach.
Both initial investments and ongoing allocation changes will generally be discussed with the client prior to implementation. Investment trades will be made through the custodian of the advisor, with this relationship being disclosed and discussed with the client. The custodian may charge varying fees for purchase of investment vehicles, which will be paid by the client unless otherwise agreed to in advance with the advisor. A different broker may be used for a particular transaction if requested by the client in advance, with any of that broker's fees paid by the client in addition to any fees charged by the advisor's custodian.
The advisor's custodian may provide research or other services to the advisor in exchange for its fees. The advisor does not receive any portion of the custodian's fee on the purchase or sale of any products.
Review and Reporting to Clients
Clients will receive a monthly statement from the custodian detailing holdings and transactions for the prior period. In addition, on an agreed-upon basis the advisor will review each account's performance and provide an update to each client. Mr. Harris will perform this review personally and will normally present this review to each client at least twice per year, depending on each client's circumstances and desires.