Introduction
F&V Capital Management, LLC is an SEC registered investment advisor that acts as a fiduciary for its clients, meaning that we always act in the best interest of our clients, unlike some broker-dealers that are not fiduciaries and merely have to offer retail investors securities or other investments that are suitable. Under federal law and securities regulations, fiduciaries must:
Act with high level of professional skill;
Put the best financial interests of their clients above their own best interests;
Make complete disclosures of all information relevant to any transactions; and
Avoid conflicts of interests.
The fiduciary duty is the highest standard of care under American law. Additional information about F&V Capital Management, LLC also is available on the SEC’s website at www.adviserinfo.sec.gov. You can search this site by a unique identifying number, known as a CRD number. Our firm's CRD number is 146399. Other useful information about financial professionals can be found at Investor.gov/CRS.
Relationships and Services
What investment services and advice can you provide me?
We manage investment advisory accounts on either a discretionary or non-discretionary basis. The firm’s management of your individual, segregated account is guided by your objectives (i.e., maximum capital appreciation, growth, income, or growth and income), as well as tax considerations. For our clients that provide us with discretionary authority, we buy and sell securities that we continuously monitor on your behalf. For non-discretionary clients, you make the ultimate decision regarding the purchase or sale of investments. Our clients include individuals and high net worth individuals, and accounts may be subject to a minimum size of one million U.S. dollars.
Given my financial situation, should I choose an investment advisory service? Why or why not?
Some people prefer to make their own investment decisions and may therefore choose to use a broker-dealer that offers securities recommendations that the investor may evaluate on their own. Such investors can avoid management fees and pay only brokerage fees when they make transactions. In contrast, the people at our firm have many years of investment experience and substantial academic qualifications and are here to evaluate investment choices for you. The advantage of utilizing our experience is that we can help you manage your investment risk and achieve you goals.
Fees, Costs, Conflicts, and Standard of Conduct
What fees will I pay?
Our firm typically charges a fee for account management that is calculated and paid as a percentage of the assets under management and generally range from 0.50% to 2.50% depending on assets under management and other factors. Some clients may chose a performance-based fee with a lower fixed percentage fee but agree to pay a performance fee equal to some part of investment profits. Accounts may also be subject to a minimum fixed fee. Because we earn a fee equal to a percentage of your assets, our interests are aligned as we do better when you do better. At the same time some may consider it a conflict of interest in that this arrangement gives our firm an incentive to encourage clients to increase assets in their 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.
Help me understand how these fees and costs might affect my investments. If I give you $1,000,000 to invest, how much will go to fees and costs, and how much will be invested for me?
An investor with a $1,000,000 would gross $100,000 in income during a year when the investments return 10%. If the investment management fee is 1.0%, the fee would be $10,000 and the investor would net $90,000 after fees.
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. For example, because we charge a higher fee for equity management than fixed income management, we have a conflict of interest because of the incentive to favor equity investments.
Disciplinary History
Neither the firm or any of our employees have ever been subject to any censure or any other disciplinary actions by the SEC or any other regulatory authority.
Visit Investor.gov/CRS for a free and simple search tool to research our firm and its professionals.
Additional Information
This Relationship Summary is for the clients and prospective client of F&V Capital Management, LLC so that they may have information in a concise and direct format about the qualifications and business practices of the firm. If you have any questions about the contents of this Summary, please contact us at 561-208-1081 or NS@FVCM.US.