Form ADV Part 3 – Client Relationship Summary
Item 1: Introduction
VICTRIX INVESTMENT ADVISORS is an investment adviser offering advisory accounts and services. Brokerage and investment advisory services and fees differ, and it is important that you understand the differences. This document gives you a summary of the types of services and fees we offer. Please visit www.investor.gov/CRS for free, simple tools to research firms and for educational materials about broker-dealers, investment advisers, and investing.
Item 2: Relationships and Services
What investment services and advice can you provide me? Our firm primarily offers the following investment advisory services to retail clients: portfolio management (we review your portfolio, investment strategy, and investments); financial planning (we assess your financial situation and provide advice to meet your goals). As part of our standard services, we typically monitor client accounts on a daily basis. Our firm offers both discretionary advisory services (where our firm makes the decision regarding the purchase or sale of investments) as well as non-discretionary services (where the retail investor makes the ultimate decision). We do not limit the types of investments that we recommend. Our firm does not have a minimum account size. Please also see our Form ADV Part 2A (“Brochure”), specifically Items 4 & 7.
Questions to ask us: 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?
Item 3: Fees, Costs, Conflicts, and Standard of Conduct
What fees will I pay? Our fees vary depending on the services you receive. Additionally, the amount of assets in your account affects our advisory fee; the more assets you have in your advisory account, the more you will pay us and thus we have an incentive to increase those assets in order to increase our fee. For hourly fee arrangements, each additional hour (or portion therefore) we spend working for you would increase the advisory fee. Except for limited exceptions involving certain legacy clients, investment management fees are billed quarterly in advance, meaning we bill you before the three-month period has started. Fees for financial plans and Retirement Plan consulting are due upon delivery of the work product. You pay our fees even if you do not have any transactions and the advisory fee paid to us generally does not vary based on the type of investments selected. Please also see Items 4, 5, 6, 7 & 8 of our Brochure.
Some investments (e.g., mutual funds, variable annuities, etc.) impose additional fees (e.g., transactional fees and product-level fees) that reduce the value of your investment over time. The same goes for any additional fees you pay to a custodian. Additionally, you will pay transaction fees, if applicable, when we buy or sell an investment for your account. You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. Please also see our Brochure for additional details.
Questions to ask us: 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. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means:
- Broker Selection. When we choose broker-dealers to execute transactions on your behalf, we consider the research products and services that we receive from these broker-dealers. We might choose to execute trades with a broker that provides us with research products that help us in making investment decisions regarding our model portfolio rather than seek to obtain the lowest-priced execution possible on your transactions.
- Personal Trading. We invest personally and/or in accounts of our families in the same securities that we recommend to you. We also buy or sell securities for you at or about the same time that we buy or sell the same securities for our own accounts. We do not favor our own accounts over your account, but there is the potential for us to do so.
More detailed information about our conflicts of interest is available in Items 5, 10, 11, 12, & 14 of our Brochure.
Questions to ask us: How might your conflicts of interest affect me, and how will you address them?
How do your financial professionals make money? Primarily, we and our financial professionals receive cash compensation from the advisory services we provide to you because of the advisory fees we receive from you. This compensation may vary based on different factors, such as those listed above in this Item. Please also see Item 10 of our Brochure for additional details.
Item 4: Disciplinary History
Do you or your financial professionals have legal or disciplinary history? Yes, we have legal and disciplinary events. Visit https://www.investor.gov/ for a free, simple search tool to research us and our financial professionals.
Questions to ask us: As a financial professional, do you have any disciplinary history? For what type of conduct?
Item 5: Additional Information
For additional information on our advisory services, see our Brochure available at https://adviserinfo.sec.gov/firm/summary/167517 and any individual brochure supplement your representative provides. If you have any questions, need additional up-to-date, or want another copy of this Client Relationship Summary, then please contact us at 772-320-9658.
Questions to ask us: Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?
Exhibit A – Material Changes to Client Relationship Summary
Conversation starters were moved in Items 2, 3, 4, and 5. Two material conflicts of interest were added to Item 3.