Frequently Asked Questions
- What are the fees?
- What is Vision Investment Advisor's investment philosophy?
- Are there any backend penalty fees for liquidating early?
- Why sell call options on stocks I own?
- Who is on the management team? What is their experience?
- Who makes the trading decisions?
- Where do you obtain your research?
- What types of clients do you generally work with?
- What type of instruments do you use for fixed income?
- How liquid and accessible are the funds in my account?
- Which sectors do you focus on?
- What forms do I need to open an account?
- What is the difference between an investment advisory firm registered with the SEC and one that is state registered?
- Where is my money held? Is my money insured?
- How can I keep track of the value of my account?
- What information is provided to me for preparation of taxes?
- Can my account be margined?
- Can I use IRA and other retirement monies to fund my account?
- What type of accounts do you accept?
- Is there a minimum account requirement?
- What types of portfolios can I have?
- What is your track record and past performance?
- What are the total assets under management for Vision Investment Advisors, LLC?
Vision Investment Advisors' compensation is based on a combination of a one time asset-based start-up fee and a quarterly asset-based management fee. Vision Advisors offers the option of a wrap fee program to new clients, other than those with Short Put accounts, who opened their accounts on or after May 8, 2003.
The start-up fee is payable on the date of the deposit with the client's broker pursuant to Vision Advisors investment advisory agreement. The management fee is payable at the end of each calendar quarter based on the total value of the account (including new unrealized appreciation or depreciation of investments and cash, cash equivalents and accrued interest) on the last trading day of the quarter.
If the account starts in the middle of a quarter, the management fee is prorated for the number of days remaining in the quarter. If an account is terminated in the middle of a quarter, the fee will be calculated based on the value of the account on the day of termination, prorated for the number of days in the quarter the account was under management. The management fee is deducted from the account before distribution of account assets to the client.
For a complete description of these fees and to see how they are allocated, please view the Wrap Fee Brochure.
What is Vision Investment Advisor's investment philosophy?
Vision Advisors provides discretionary advisory services in equity, fixed income, balanced, dividend and short put portfolios to meet the needs of individual and institutional investors.
The Equity Portfolio focuses primarily on long-term investing with a growth-oriented approach supported by proprietary trading methods to determine target prices. For some clients, the enhanced yield and a measure of downside protection is sought through closely monitored covered call option writing*. On the more conservative end of the spectrum, the Income Portfolio provides a steady income stream to investors in order to cover their cash flow needs. The Balanced Portfolio combines the strategies of both equity and fixed income. The Dividend Portfolio’s principle objective is to provide returns from a diversified group of companies that have an attractive dividend rate, but still maintain many growth characteristics. The Short Put Portfolio’s principle objective is to provide returns through earning premium income from writing put options on a select group of stocks that Vision believes will either maintain a stable price or increase in value. Due to the additional risks involved with writing put options, this portfolio is only suitable for clients who understand and can handle the higher level of risk.
Are there any backend penalty fees for liquidating early?
If an account is terminated in the middle of a quarter, the fee will be calculated based on the value of the account on the day of withdrawal, prorated for the number of days in the quarter the account was under management. The management fee is deducted from the account before distribution of account assets to the client. The value of the account itself will fluctuate with the current market conditions.
Why sell call options on stocks I own?
Even though we are confident in our stock picks, these options serve to help manage risk and create some limited downside protection on our long common stock positions in addition to producing some income.
For more in detailed information about covered call options please click here.
Who is on the management team? What is their experience?
The management team at Vision Investment Advisors, LLC consists of Howard Rothman, Chief Investment Officer and Chief Executive Officer, Lloyd G. King, Senior Vice President and Chief Administrator Officer and Steven Silver, Chief Operating Officer. For a more detailed description of the management team and their respective experience, please refer to Schedule F, Item 6 of Vision Advisors' Form ADV Part II.
Who makes the trading decisions?
The Chief Investment Officer, Howard Rothman, makes all investment decisions.
Where do you obtain your research?
Vision Advisors conducts its primary research from traditional and electronic information sources such as financial reports, SEC filings, the Bloomberg computer system, various rating services and nationally recognized research services such as Value Line and Standard's & Poor's. An emphasis is placed on a number of factors such as revenues and income growth, dominant position in its industry, large cap status, return on equity and companies which favor stock purchase programs.
What types of clients do you generally work with?
Vision Advisors caters primarily to affluent individuals and their retirement accounts, family trusts and family investment vehicles. Vision Advisors' investment programs are also suitable for institutional investors such as corporate pension plans, trusts, endowments and charitable organizations.
What type of instruments do you use for fixed income?
The Income Portfolio (taxable and non-taxable) is concentrated in preferred stocks, municipal bonds, U.S. Government securities and other debt instruments such as investment grade corporate bonds.
How liquid and accessible are the funds in my account?
Although the portfolios should be viewed as long-term investments, your account remains liquid at all times. Should you need to liquidate your account, the entire process can be completed in no more than five days, absent abnormal market conditions.
Which sectors do you focus on?
Although Vision Advisors does not focus on any specific sector, Vision Advisors invests in what they believe to be the top tier stocks in each sector. Securities in the Equity Portfolio may represent several sectors of the economy, but generally will not be concentrated in any one sector or constitute more than 15% in any one issuer.
What forms do I need to open an account?
For all inquiries on forms, please view Vision Advisors' Account Form page, or call Vision Advisors at 800.317.1994.
What is the difference between an investment advisory firm registered with the SEC and one that is state registered?
Based on the number of assets under management, a firm either registers with the SEC or registers with the states in which it conducts investment advisory business. Firms that have at least $25 Million in assets under management register with the SEC. Vision Investment Advisors is registered with SEC.
Where is my money held? Is my money insured?
In the absence of a specific direction to use another broker, Vision Advisors intends to effect virtually all brokerage transactions through its affiliate, Vision Brokerage Services, LLC to its clearing firm, which holds the funds and securities. Vision Advisors has the right to reject an account which directs brokerage to another firm.
The clearing firm is a member of the Financial Industry Regulatory Authority ("FINRA"). Vision Brokerage Services and its clearing firm are both also members of the Securities Investor Protection Corporation ("SIPC"), which acts as trustee in a missing asset case to recover funds. The statute that created the SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. At the same time, funds from the SIPC reserve are available to satisfy the remaining claims of each customer up to a maximum of $500,000, which includes a maximum of $100,000 on claims for cash.
The clearing firm maintains additional protection for clients' assets, up to $5 million per customer for cash and securities and $9.5 million for each and every loss and in the aggregate. This coverage is in excess of the $500,000 covered through SIPC and is similar in scope to SIPC protection. This protection does not safeguard against a decline or loss in market value of the securities in your account.
How can I keep track of the value of my account?
Clients will receive a confirmation from the clearing firm for each trade executed in their account. Clients will also receive a monthly statement reviewing all transactions in the account during any month where there is trading activity, including any cash or dividend activity and current valuations. At the very least, clients will receive a quarterly statement, regardless of the trading activity in the account. Clients can also view their account information on a real time basis online
What information is provided to me for preparation of taxes?
Clients receive a year-end tax statement ("1099" forms) issued by the clearing firm, which will summarize all the pertinent information necessary for tax preparation.
Any amount of margin or leverage will add both risk and opportunity. Vision Advisors will manage the account on a leveraged basis only if it concludes that the account holder is financially suitable for margin trading and if it is in line with the client's specific goals and objectives. Assuming financial suitability requirements are met, a client may elect to leverage his or her account to a maximum of 50%. In any case, Vision Advisors recommend that any given account not be margined greater than 25% to 30%. A separate margin agreement needs to be completed to utilize margin.
Can I use IRA and other retirement monies to fund my account?
Vision Advisors manages many types of qualified retirement-based accounts such as Traditional IRAs, Roth IRAs, 401(k), 403(b), Keogh accounts, as well as pension plans.
What type of accounts do you accept?
Among others, Vision Advisors accepts:
- Domestic and foreign domiciled individual and joint accounts
- Trusts (including retirement based trusts, individual, and individual living)
- Corporate Accounts
- Retirement Accounts
Is there a minimum account requirement?
Vision Advisors recommends that clients deposit at least $250,000 in their account. Clients who wish to deposit less than $250,000 will have less diversification, but may still be accommodated. New accounts below $25,000 will not be accepted. See the Wrap Fee Brochure or Vision Investment Advisors' Form ADV Part II for complete details.
What types of portfolios can I have?
Based on the client’s individual risk tolerance and investment objectives, clients have four portfolios to choose from. For more information on Vision Advisors portfolios, please click on the links below:
What is your track record and past performance?
To obtain a copy of Vision Advisors Blue Chip Growth Account Performance Record, please call 800.317.1994 or send us an e-mail.
What are the total assets under management for Vision Investment Advisors, LLC?
As of December 2007, Vision Advisors had approximately $415 million under management.
If you have any questions that have not been answered here, please call 800.317.1994 or send us an e-mail.
