Keel Point, LLC
Registered Investment Advisor
FORM ADV, PART 3 – CLIENT RELATIONSHIP SUMMARY
Effective August 30, 2020
Keel Point, LLC (“KP,” “we” or the “Firm”) is registered with the Securities and Exchange Commission as an investment adviser. Brokerage and investment advisory services differ and it is important for the retail investor to understand the differences. Free and simple tools are available for you to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
What investment services and advice can you provide me?
The Firm offers investment advisory services to retail investors, using different service models. Under Model A, we develop strategic and tactical asset allocations and recommend, as appropriate, sub-advisers or independent investment managers for the management of client assets. As part of the Model A services, we monitor the performance of client portfolios against certain benchmarks, assess the performance of the asset managers and report results to clients through periodic meetings and quarterly investment reports. For these services, investment discretion is granted to the sub-advisers and independent investment managers. The Model A services also include family office services that address a family’s personal, planning, business and financial affairs. Under Model B, a financial plan is developed, which includes a broad array of financial planning services. An investment advisory account is then opened, based on the financial plan and other pertinent investor profile information. The account is managed by KP on a discretionary basis. With such investment discretion, we have full authority to determine investment strategies and the securities that are purchased and sold.
The Firm also serves as an adviser or sub-adviser to certain wrap fee programs for which our affiliate, Keel Point Capital, LLC (“KPC”), serves as the program sponsor. Under these wrap fee programs, clients receive investment management, brokerage and custodial services and are charged a wrap program fee that is described below. Under the wrap fee programs, KPC will typically serve as an introducing broker-dealer that facilitates the execution of trades by the custodian of the wrap program assets. The client, however, has discretion to choose another broker-dealer.
A full description of our investment advisory services including account minimum size requirements can be found in the Firm’s disclosure brochure, which is prepared in accordance with SEC Form ADV, Part 2A (the “Brochure”). The Brochure is available on the Investment Adviser Public Disclosure website at https://adviserinfo.sec.gov/firm/summary/127902. For more information about the wrap fee programs, please see the Firm’s wrap fee program brochure, which is a supplement to the Brochure and is prepared in accordance with Appendix 1 of SEC Form ADV, Part 2A (the “Wrap Fee Program Brochure”).
Questions you may want to discuss with your financial professional
- Given my financial situation, should I choose an investment advisory service? Why or why not?
- How will you choose investments to recommend to me?
- What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?
What fees will I pay?
The Firm charges fees for investment advisory services that are based upon a percentage of assets under management. Please see the Firm’s Brochure for the specific fee schedules that apply with respect to the Firm’s Model A and Model B services. Fees paid to KP are separate and distinct from the fees and expenses charged by mutual funds and exchange-traded funds to their shareholders. Financial planning and consulting services are made available at no additional charge to those clients who have engaged KP to provide ongoing investment management services. In all other cases, KP charges an hourly or flat fee for these services that is to be agreed upon based on the scope and complexity of the engagement. For more information about when fees are assessed for investment advisory services, please see the Firm’s Brochure.
The Firm’s fees for family office services are based on the level of services and resources required. Please see the Firm’s Brochure for details.
Under the wrap fee programs referenced above, clients receive investment management, brokerage and custodial services for a single, all-inclusive fee that varies depending upon the assets under management. This all-inclusive fee will include most transaction costs and fees for the custodian of your assets and, therefore, may be higher than a typical asset-based advisory fee.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. Fees and costs related to our investment advisory services are more particularly described in the Firm’s Brochure.
The impact of fees and costs on investments
We are prepared to address the following regarding fees and costs:
- Help me understand how these fees and costs might affect my investments.
- If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?
What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
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. For example, in an investment advisory account, there is an incentive to boost assets under management, to increase management fees. You should understand and ask us about these conflicts because they can affect the investment advice we provide you.
How might your conflicts of interest affect me, and how will you address them?
The firm benefits when you increase the assets in your account. The Firm may therefore have an incentive to encourage you to increase the assets in your account. As a registered investment adviser, and as a fiduciary to our clients, we place our clients’ interests first and foremost and are required to make full and fair disclosure of all material facts pertaining to potential or actual conflicts of interest. For more information regarding how the Firm addresses conflicts of interest, please see the Firm Brochure.
How do your financial professionals make money?
Our financial professionals receive a percentage of the investment advisory fees that the Firm earns from their provision of investment advisory services.
Do you or your financial professionals have a legal or disciplinary history?
No. You may visit Investor.gov/CRS, which provides a free and simple search tool to research the Firm and its financial professionals. You should feel free to ask your financial professional the following questions regarding disciplinary history:
- As a financial professional, do you have any disciplinary history?
- For what type of conduct?
Additional information about the Firm can be obtained by (i) going to adviserinfo.sec.gov, or (ii) contacting the Firm by telephone at 256-704-5111.
Who is my primary contact person? Is he or she a representative of KP? Who can I talk to if I have concerns about how this person is treating me?
Your financial professional is your primary contact. Your financial professional is an investment adviser representative of KP. If you have any concerns about your financial professional, you may contact Keel Point’s Chief Compliance Officer at 256-704-5111.