Form ADV Part 3 – Client Relationship Summary June 26, 2020
JUNCTURE
ASSET MANAGEMENT, LLC
Item 1. Introduction
Juncture Asset Management, LLC (JAM) is registered with the Securities and Exchange Commission (SEC) as an investment advisor, and we provide investment advisory services rather than brokerage services. Investment advisory services and brokerage services and fees differ, and it is important for the retail investor to understand the differences. This document gives you a summary of the types of services we proved and how you pay. Please ask us for more information.
Free and simple tools are available to research firms and financial professionals at www.Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
Item 2. Relationships and Services
What investment services and advice can you provide me?
Services: We offer portfolio management services to the accounts of retail investors. We are hired by other advisers (“Primary Advisors”) to manage investment models and client accounts for their clients’ accounts. The Primary Advisor may be affiliated (owned by the same individuals) with JAM. In fact, JAM is registered with the SEC as a “related adviser” to Juncture Wealth Strategies, LLC.
Monitoring: If you open an advisory account with your Primary Advisor, your funds or assets are held in your account in your name at a qualified custodian such as TD Ameritrade or Charles Schwab. Your Primary Advisor, not JAM, will meet with you to understand your current financial situation, existing resources, goals, and risk tolerance. At that point, your Primary Advisor will determine the amount of your account being authorized for management by JAM. This will also include the investment objectives for the portfolio of investments that will be created, monitored, and rebalanced on a regular basis by JAM as part of our standard service. You will pay us an on-going asset-based fee at the end of each month for our services based on the value of the cash and investments that your Primary Advisor has authorized us to manage.
Investment Authority: You can choose an account that either allows us to 1) determine the amount and types of investments to buy and sell in your account without asking you for approval (a “discretionary account”) or 2) give you advice and you pre- approve what investments to buy and sell (a “non-discretionary account”). For non-discretionary accounts, you will make the ultimate decision regarding the purchase or sale of investments for your account.
Investment Offerings: Our investment advice is not limited to a particular type of security. We provide advice with respect to equities, fixed income and cash investments. Our strategies will cover a wide selection of investments and we’ll oversee the functions of managing strategies, implementing trades, and reporting performance for client accounts. Other firms could provide advice on a wider range of choices, some of which might have lower costs.
Account Minimums: We do not have specified account minimums. However, some strategies and investment products may require minimum amounts to participate.
Additional information about our advisory services is in Item 4 of our Firm Brochure (“Part 2 Brochures”) available online at https://adviserinfo.sec.gov/firm/summary/306349.
Item 3. Fees, Costs, Conflicts and Standards of Conduct
CONVERSATION STARTER - Ask 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?
You will be charged an ongoing monthly fee based on the value of the investments in your account. We charge a maximum fee of .65% of assets under management based on the agreement we have with your Primary Advisor. The fee percentage may vary based on type of investments. We may negotiate lower fee arrangements for clients at our sole discretion. The more assets you have in your advisory account, the more you will pay us. We therefore have an incentive to increase the assets in your advisory account in order to increase our fees. You pay our fee monthly even if no trading occurs in your account. Depending on our agreement with your Primary Advisor, our firm’s fees will be automatically deducted from your advisory account either as a separate fee on your custodian’s statement or as part of your Primary Advisor’s fee. Our fee will reduce the value of your advisory account.
You are responsible for all custodial and securities broker-dealer fees charged for executing transactions in your account. Our asset-based fee is separate and distinct from the custodian trade execution fees. You may also pay custody fees imposed by the custodian holding your accounts for certain investments and maintaining your account.
Some investments such as mutual funds, index funds, exchange traded funds, and annuities impose additional fees and internal costs that will reduce the value of your investment over time. Also, with certain investments such as annuities, you may have to pay fees such as “surrender charges” to sell the investment.
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.
Additional information about our fees is in Item 5 of our Firm Brochure (“Part 2 Brochures”) available online at https://adviserinfo.sec.gov/firm/summary/306349.
CONVERSATION STARTER - Ask your financial professional:
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:
Juncture Asset Management has a conflict of interest regarding advice given on adding new assets or transferring assets into accounts managed by our firm in that we receive compensation for your assets managed by our company. At JAM, our only source of revenue is from the investment management fees paid by the clients of Primary Advisors. Our firm does not make money from any other fees or revenue streams. We do not sell proprietary products, provide financial planning, receive third- party payments, or buy or sell investments from our company principal accounts directly to you. We therefore have no financial incentive to sell you any particular mutual fund, exchange-traded fund, annuity, or insurance product. We do have a financial incentive to increase your assets under our management.
How do your financial professionals make money?
Do you or your financial professionals have legal or disciplinary history?
CONVERSATION STARTER - Ask your financial professional:
How might your conflicts of interest affect me, and how will you address them?
Additional information about our fees is in Item 5 and 10 of our Firm Brochure (“Part 2 Brochures”) available online at https://adviserinfo.sec.gov/firm/summary/306349.
Our financial professionals are compensated through a combination of salary and bonus. Bonuses are discretionary and reflect the overall success of the firm and the individual.
Item 4. Disciplinary History
No. Visit Investor.gov/CRS for a free and simple search tool to research our firm and our financial professionals.
CONVERSATION STARTER - Ask your financial professional:
As a financial professional, do you have any disciplinary history? For what type of conduct?
Item 5. Additional Information
You can find additional information about our firm’s investment advisory services on the SEC’s website at www.adviserinfo.sec.gov by searching CRD #306349. If you would like additional, up-to-date information or a copy of this disclosure, please call 480.253.4100.
CONVERSATION STARTER - Ask your financial professional:
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?