ABOUT BLUE ROCK FINANCIAL SERVICES, INC
Affiliations With Other Firms
Blue Rock Financial Services, Inc. has agreements with TD Ameritrade, Shareholders Services Group, and Altruist to act as custodians for client assets and utilizes these firms in the management of the firm's client accounts. Other firms providing services to Blue Rock include Advyzon, RightCapital, and Holistiplan. These firms provide services to assist Blue Rock in helping their clients.
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.
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. who desire tailored portfolios and ongoing management by the firm. 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 custodians 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.
Blue Rock Financial Services, Inc. does business 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.