Firm Information
Stage Harbor Financial, LLC (“Stage Harbor” or the “Advisor”) is a registered investment advisor with the U.S.
Securities and Exchange Commission (“SEC”). The Advisor is organized as a Limited Liability Company (“LLC”)
under the laws of the State of Delaware. Stage Harbor was founded in February 2018 and is owned and operated
by Andre M. Fernandes (Principal), Matthew D. Biggar (Principal) and William F. LeFavor (Principal). This
Disclosure Brochure provides information regarding the qualifications, business practices, and the advisory services
provided by Stage Harbor.
Advisory Services Offered
Stage Harbor offers a variety of advisory services, which include financial planning, consulting, and investment
management services to individuals, high net worth individuals, trusts, estates, businesses and retirement plans
(each referred to as a “Client”). Prior to Stage Harbor rendering any of the foregoing advisory services, Clients
generally enter into one or more written agreements with Stage Harbor setting forth the relevant terms and conditions
of the advisory relationship.
Stage Harbor serves as a fiduciary to Clients, as defined under the applicable laws and regulations. As a fiduciary,
Stage Harbor upholds a duty of loyalty, fairness and good faith towards each Client and seeks to mitigate potential
conflicts of interest. The Advisor’s fiduciary commitment is further described in the Advisor’s Code of Ethics. For
more information regarding the Advisor’s Code of Ethics, please see Item 11 – Code of Ethics, Participation or
Interest in Client Transactions and Personal Trading.
Wealth Management Services
Stage Harbor provides Clients with wealth management services which includes a broad range of comprehensive
financial planning and consulting services as well as discretionary management of investment portfolios.
Internal Investment Management – Stage Harbor primarily allocates Client assets among various mutual funds,
exchange-traded funds (“ETFs”), individual debt securities and independent investment managers (“Independent
Managers”) in accordance with their stated investment objectives. Less frequently, the Advisor will allocate assets
among individual equity securities, structured notes and private funds.
Where appropriate, the Advisor also provides advice about any type of legacy position or other investment held in
Client portfolios. Clients can engage Stage Harbor to manage and/or advise on certain investment products that are
not maintained at their primary custodian, such as variable life insurance and annuity contracts and assets held in
employer sponsored retirement plans and qualified tuition plans (i.e., 529 plans). In these situations, Stage Harbor
directs or recommends the allocation of Client assets among the various investment options available with the
product. These assets are generally maintained at the underwriting insurance company or the custodian designated
by the product’s provider.
Stage Harbor tailors its wealth management services to meet the needs of its individual Clients and seeks to ensure,
on a continuous basis, that Client portfolios are managed in a manner consistent with those needs and objectives.
Stage Harbor consults with Clients on an initial and ongoing basis to assess their specific risk tolerance, time
horizon, liquidity constraints and other related factors relevant to the management of their portfolios. Clients are
advised to promptly notify Stage Harbor if there are changes in their financial situation or if they wish to place any
limitations on the management of their portfolios. Clients can impose reasonable restrictions or mandates on the
management of their accounts if Stage Harbor determines, in its sole discretion, the conditions would not materially
impact the performance of a management strategy or prove overly burdensome to the Advisor’s management
efforts.
Under certain circumstances, Stage Harbor may accept or maintain custody of Client’s funds or securities. Please
see Item 15 – Custody for more information.
Retirement Accounts – When the Advisor provides investment advice to Clients regarding ERISA retirement
accounts or individual retirement accounts (“IRAs”), the Advisor is a fiduciary within the meaning of Title I of the
Employee Retirement Income Security Act (“ERISA”) and/or the Internal Revenue Code (“IRC”), as applicable,
which are laws governing retirement accounts. When deemed to be in the Client’s best interest, the Advisor will
provide investment advice to a Client regarding a distribution from an ERISA retirement account or to roll over the
assets to an IRA, or recommend a similar transaction including rollovers from one ERISA sponsored Plan to
another, one IRA to another IRA, or from one type of account to another account (e.g. commission-based account
to fee-based account). Such a recommendation creates a conflict of interest if the Advisor will earn a new (or
increase its current) advisory fee as a result of the transaction. No client is under any obligation to roll over a
retirement account to an account managed by the Advisor.
Use of Independent Managers – As mentioned above, Stage Harbor selects certain Independent Managers to
actively manage a portion of its Clients’ assets. The Advisor is given discretion to hire and fire the Independent
Managers without the Client’s prior consent. The specific terms and conditions under which a Client engages an
Independent Manager may be set forth in a separate written agreement with the designated Independent Manager.
In addition to this brochure, Clients may also receive the written disclosure documents of the respective Independent
Managers engaged to manage their assets.
Stage Harbor evaluates a variety of information about Independent Managers, which includes the Independent
Managers’ public disclosure documents,
materials supplied by the Independent Managers themselves and other
third-party analyses it believes are reputable. To the extent possible, the Advisor seeks to assess the Independent
Managers’ investment strategies, past performance and risk results in relation to its Clients’ individual portfolio
allocations and risk exposure. Stage Harbor also takes into consideration each Independent Manager’s management
style, returns, reputation, financial strength, reporting, pricing and research capabilities, among other factors.
Stage Harbor continues to provide services relative to the discretionary selection of the Independent Managers. On
an ongoing basis, the Advisor monitors the performance of those accounts being managed by Independent
Managers. Stage Harbor seeks to ensure the Independent Managers’ strategies and target allocations remain aligned
with its Clients’ investment objectives and overall best interests.
Financial Planning and Consulting Services – Stage Harbor offers Clients a broad range of financial planning and
consulting services, which includes any or all of the following functions:
Retirement Planning Philanthropic Planning Education Planning
Cash Flow Planning Financial Risk Mitigation Estate Planning Strategies
Asset Allocation Income Tax Strategies Debt Management
While each of these services are available on a stand-alone basis, certain of them will be rendered in conjunction
with investment management services as part of a comprehensive wealth management engagement (described in
more detail below).
Generally, such financial planning services involve preparing a formal financial plan or rendering a specific
financial consultation based on the Client’s financial goals and objectives. A financial plan developed for, or
financial consultation rendered to the Client will usually include general recommendations for a course of activity
or specific actions to be taken by the Client. For example, recommendations may be made that the Client start or
revise their investment programs, commence or alter retirement savings, establish education savings and/or
charitable giving programs.
Stage Harbor may also refer Clients to an accountant, attorney or other specialists, as appropriate for their unique
situation. For certain financial planning engagements, the Advisor will provide a written summary of the Client’s
financial situation, observations, and recommendations. For consulting or ad-hoc engagements, the Advisor may
not provide a written summary. Plans or consultations are typically completed within six (6) months of contract
date, assuming all information and documents requested are provided promptly.
Financial planning and consulting recommendations pose a conflict between the interests of the Advisor and the
interests of the Client. For example, the Advisor has an incentive to recommend that Clients engage the Advisor
for investment management services or to increase the level of investment assets with the Advisor, as it would
increase the amount of advisory fees paid to the Advisor. Clients are not obligated to implement any
recommendations made by the Advisor or maintain an ongoing relationship with the Advisor. If the Client elects to
act on any of the recommendations made by the Advisor, the Client is under no obligation to effect the transaction
through the Advisor.
Retirement Plan Advisory Services
Stage Harbor provides various consulting services to qualified employee benefit plans and their fiduciaries. This
suite of institutional services is designed to assist plan sponsors in structuring, managing and optimizing their
corporate retirement plans. Each engagement is individually negotiated and customized, and includes any or all of
the following services:
• Plan Design and Strategy Plan Fee and Cost Analysis
• Plan Review and Evaluation Plan Committee Consultation
• Executive Planning & Benefits Fiduciary and Compliance
• Investment Selection Participant Education
As disclosed in the retirement plan advisory agreement, certain of the foregoing services are provided by Stage
Harbor as a fiduciary under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). In
accordance with ERISA Section 408(b)(2), each plan sponsor is provided with a written description of Advisors’
fiduciary status, the specific services to be rendered and all direct and indirect compensation the Advisor reasonably
expects under the engagement.
Client Account Management
Prior to engaging Stage Harbor to provide investment advisory services, each Client is generally required to enter
into one or more agreements with the Advisor that define the terms, conditions, authority and responsibilities of the
Advisor and the Client. These services may include:
• Establishing an Investment Strategy – Stage Harbor, in connection with the Client, will develop a strategy
that seeks to achieve the Client’s goals and objectives.
• Asset Allocation – Stage Harbor will develop a strategic asset allocation that is targeted to meet the
investment objectives, time horizon, financial situation and tolerance of risk for each Client.
• Portfolio Construction – Stage Harbor will develop a portfolio for the Client that is intended to meet the
stated goals and objectives of the Client.
• Investment Management and Supervision – Stage Harbor will provide investment management and
ongoing oversight of the Client’s investment portfolio.
Wrap Fee Programs
Stage Harbor does not manage or place Client assets into a wrap fee program. Investment management services are
provided directly by Stage Harbor.
Assets Under Management
As of December 31, 2023, Stage Harbor manages $876,599,462 in Client assets, all of which are managed on a
discretionary basis. Clients may request more current information at any time by contacting the Advisor.