Firm Description
Mutual Fund Protection Service, DBA Investment Protection Service, and DBA Integrity Prosperity
Security (IPS) Strategic Capital, was founded in 1993.
Mutual Fund Protection Service provides personalized confidential financial planning and
investment management to individuals, pension and profit sharing plans, trusts, estates, charitable
organizations and small businesses. The firm also provides investment management services as
an adviser and/or sub- adviser to an investment company through its mutual fund the IPS Strategic
Capital Absolute Return Fund (the “Fund”) which is a series of the WP Trust, a Delaware Statutory
Business Trust (the “Trust”). Advice is provided through consultation with the client and may
include: determination of financial objectives, identification of financial problems, cash flow
management, tax planning, insurance review, investment management, education funding,
retirement planning, and estate planning.
Mutual Fund Protection Service is a fee-only financial planning and investment management firm
however, the firm may sell annuities and insurance.
Investment advice is an integral part of financial planning. In addition, Mutual Fund Protection
Service advises clients regarding cash flow, college planning, retirement planning, tax planning and
estate planning.
Investment advice is provided, along with discretionary investment management through a limited
power of attorney assignment by the client. Mutual Fund Protection Service does not act as a
custodian of client assets. The client always maintains asset control. Mutual Fund Protection
Service places trades for clients under the limited power of attorney assignment.
Periodic reviews are also communicated to provide reminders of the specific courses of action that
need to be taken. More frequent reviews occur but are not necessarily communicated to the client
unless immediate changes are recommended.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are engaged directly by the
client on an as-needed basis. Conflicts of interest will be disclosed to the client in the unlikely event
they should occur.
The initial meeting, which may be by telephone, is free of charge and is considered an exploratory
interview to determine the extent to which financial planning and investment management may be
beneficial to the client.
Principal Owners
Dominick Paoloni is a 100% stockholder.
Types of Advisory Services
Mutual Fund Protection Service provides investment supervisory services, also known as asset
management services; manages investment advisory accounts not involving investment
supervisory services; furnishes investment advice through consultations; issues periodicals about
securities by subscription; issues special reports about securities; and issues, charts, graphs,
formulas, or other devices which clients may use to evaluate securities.
On more than an occasional basis, Mutual Fund Protection Service furnishes advice to clients on
matters not involving securities, such as financial planning matters, taxation issues, and trust
services that may include estate planning.
Mutual Fund Protection Service provides investment management services for the IPS Strategic
Capital Absolute Return Fund. These services include the investment and reinvestment of the
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assets of the Fund; the continuous review, supervision, and administration of the investment
program of the Fund; and the selection of securities to be purchased, retained, or sold.
As of 12/31/2022, Mutual Fund Protection Service manages approximately $72,772,436 in assets
for approximately 144 clients. Approximately $66,648,974 is managed on a discretionary basis, and
$6,123,462 is managed on a non-discretionary basis.
Tailored Relationships
The goals and objectives for each client are documented in our client relationship management
system. Investment policy statements may be created that reflect the stated goals and objective.
Clients may impose restrictions on investing in certain securities or types of securities.
Agreements may not be assigned without client consent.
Types of Agreements
The following agreements define the typical client relationships.
Financial Planning Agreement
A financial plan is designed to help the client with all aspects of financial planning without ongoing
investment management after the financial plan is completed.
The financial plan may include, but is not limited to: a net worth statement; a cash flow statement; a
review
of investment accounts, including reviewing asset allocation and providing repositioning
recommendations; strategic tax planning; a review of retirement accounts and plans including
recommendations; a review of insurance policies and recommendations for changes, if necessary;
one or more retirement scenarios; estate planning review and recommendations; and education
planning with funding recommendations.
Detailed investment advice and specific recommendations are provided as part of a financial plan.
Implementation of the recommendations is at the discretion of the client.
Advisory Service Agreement
Most clients choose to have Mutual Fund Protection Service manage their assets in order to obtain
ongoing in-depth advice and life planning. Realistic and measurable goals are set and objectives to
reach those goals are defined. As goals and objectives change over time, suggestions are made
and implemented on an ongoing basis.
The scope of work and fee for an Advisory Service client includes: insurance review; investment
management (including performance reporting); education planning; retirement planning; and estate
planning as well as the implementation of recommendations within each area.
Although the Advisory Service Agreement is an ongoing agreement and constant adjustments are
required, the length of service to the client is at the client’s discretion. The client or the investment
manager may terminate an Agreement by written notice to the other party. At termination, fees will
be rebated on a pro rata basis for the uncompleted portion of the quarter. The portfolio value at the
completion of the prior full billing quarter is used as the basis for the fee computation, adjusted for
the number of days during the billing quarter prior to termination. The Advisory Service Agreement
dictates a one-year fee commitment, even if the client terminates the relationship in the first year.
Hourly Planning Engagements
Mutual Fund Protection Service may provide hourly planning services for clients who need advice
on a limited scope of work. The hourly rate for limited scope engagements is $250.
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Asset Management
Assets may be invested in no-load mutual funds and exchange-traded funds, usually through
discount brokers or fund companies. Fund companies charge each fund shareholder an investment
management fee that is disclosed in the fund prospectus. Discount brokerages may charge a
transaction fee for the purchase of some funds.
Stocks and bonds may be purchased or sold through a brokerage account when appropriate. The
brokerage firm charges a fee for stock and bond trades. Mutual Fund Protection Service does not
receive any compensation, in any form, from the purchase and sale of stocks and bonds.
Options may be purchased or sold in client accounts in order to provide protection and income.
The brokerage firm charges a fee for options trades. Mutual Fund Protection Service does not
receive any compensation, in any form, from the purchase and sale of options.
Mutual Fund Protection Service may recommend our clients’ invest in mutual funds where Mutual
Fund Protection Service serves as the investment manager. As a result, Mutual Fund Protection
Service receives management fees paid by the Fund. Mutual Fund Protection Service does not
charge clients any management fees on the value of the shares of the Fund held by the client.
Investments may also include: equities (stocks), warrants, corporate debt securities, commercial
paper, certificates of deposit, municipal securities, investment company securities (variable life
insurance, variable annuities, and mutual funds shares), U. S. government securities, options
contracts, futures contracts, and interests in partnerships.
Initial public offerings (IPOs) are not available through Mutual Fund Protection Service.
Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time by notifying Mutual Fund
Protection Service in writing and paying the rate for the time spent on the investment advisory
engagement prior to notification of termination. If the client made an advance payment, Mutual
Fund Protection Service will refund any unearned portion of the advance payment. As mentioned
above, a year commitment is required.
Mutual Fund Protection Service may terminate any of the aforementioned agreements at any time
by notifying the client in writing. If the client made an advance payment, Mutual Fund Protection
Service will refund any unearned portion of the advance payment.