Form CRS (Client Relationship Summary)
Item 1. Introduction
Monticello Associates Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. We are not a broker-dealer and do not offer brokerage services. Because brokerage and advisory services and fees differ, it is important for retail investors like you to know the differences. You may access free and simple tools to research firms and financial professionals at 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? As described in our Form ADV (specifically Items 4 and 7 of Part 2A and Items 4.A. and 5 of Part 2A Appendix 1), we offer non-discretionary advisory services to retail investors who make the ultimate decision regarding the purchase or sale of investments. In particular, we offer asset management consulting services, which include some or all of the following services: (i) developing investment policies and objectives, (ii) analyzing asset allocation and diversification, (iii) researching investment managers and their funds for client selection, (iv) providing due diligence and performance monitoring of managers, (v) providing periodic performance reports on client accounts, and (vi) other related services.
- 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? We charge you a consulting fee based on several factors, including the amount of your assets under advisement and the level and complexity of our service to you. This consulting fee is an annual-based fee that is payable in quarterly installments at the beginning of each quarter. This consulting fee does not include investment management fees, transaction costs, or custodial fees that are charged by other service providers. Our consulting agreement generally does not have a termination date. Accordingly, either of us may terminate the agreement at any time, upon prior written notice. If an agreement is terminated, we will prorate any pre-paid consulting fees and refund the outstanding amount. Because our consulting fee is based on the amount of your assets under advisement, we have an incentive to encourage you to increase the assets under advisement. 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.
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. To that end, we do not: (i) have any proprietary products that are issued, sponsored, or managed by us or our affiliates, (ii) receive any compensation from third parties for any investments that we recommend to you, (iii) share in any revenue from managers that we recommend to you, or (iv) engage in any investment transactions with you. At the same time, the way we make money creates some potential conflicts with your interests. As mentioned above, we have an incentive to encourage you to increase the assets under advisement because our consulting fee is based on the amount of your assets under advisement. You should understand and ask us about these potential 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?
How do your financial professionals make money? Our financial professionals are compensated in cash salaries and bonuses based on the discretion of our management. Their compensation is not determined by: (i) the amount of your assets they service, (ii) the time and complexity required to serve your needs, or (iii) the type or amount of investment recommendations made to or followed by you.
Item 4. Disciplinary History
Do you or your financial professionals have legal or disciplinary history? No. You may visit Investor.gov/CRS for a free and simple search tool to research us and our financial professionals.
- As a financial professional, do you have any disciplinary history? For what type of conduct?
Item 5. Additional Information
You may find additional information about our advisory services and request a copy of our relationship summary on our website, www.monticelloassociates.com, or by calling 303-572-6300 to request up-to-date information.