SCI, Inc. (SCI) was founded in 1975 by Michael Stolper who retired on December 31,
2017.
The principal owner of SCI is Barbara Malone.
Generally speaking, SCI offers the following services to clients:
1. SCI assists in selecting investment managers, mutual funds and commingled products
for discretionary portfolio management. These portfolios are not managed by Stolper
& Co.
Investment management firms and mutual funds are recommended to clients
after the following factors, if applicable, are considered:
i. Quality of the investment record
ii. Longevity of the investment record
iii. Investment philosophy
iv. Types of securities owned
v. Portfolio structure
vi. Educational and business background
of investment principals
vii. Fees
viii. Availability of references
ix. Research sources
x. Number of clients
xi. Amount of assets managed
xii. Method and frequency of reporting to client
xiii. Brokerage practices
xiv. Long-term business plan
xv. Decision-making process
.
Recommendations of investment advisors are subject to certain constraints imposed by
the client including but not limited to:
i. Fees of investment advisory firm.
ii. Length of time in business of investment advisory firm.
iii. Number of portfolio managers employed by investment advisory firm.
iv. Aggregate assets currently managed by investment advisory firm.
v. Performance history of investment advisory firm for funds similar
to that of the client.
vi. Investment philosophy of investment advisory firm
vii. Minimum account accepted by investment advisory firm.
Specific recommendations are usually made after conferring with the client with regard to
client’s investment objectives. The objectives give recognition of, among other things,
tax considerations, income requirements, ultimate purpose of the fund, investment
philosophy and risk tolerance.
It is SCI’s policy to encourage funds subject to ERISA, to develop a formal, written
statement of investment objectives. The statement should establish quantitative criteria
to measure the effectiveness of the investment advisor.
SCI from time to time provides investment consulting services to various entities on a flat
fee basis.
2. Stolper & Co. also provides asset allocation services to clients under an arrangement
in which SCI will allocate all or a portion of a client’s portfolio to subadvisers hired by
SCI. Under this arrangement, SCI monitors the investment activities of the subadvisers
and SCI retains the ability to terminate the subadviser or allocate more or less of the
client’s portfolio to the subadviser at any time. SCI also negotiates each subadviser’s
fees on the client’s behalf.
3. Stolper & Co. provides investment management services and individualized advice to
clients through a mutual fund selection program. SCI has full authority to purchase
and sell
shares of open-end, both load and no-load funds, (load funds are selected
only if the sales charge is waived and it can be purchased at NAV and closed-end
mutual funds (including money-market funds) on behalf of each participating client.
Factors similar to those outlined above with respect to investment managers are
considered by the SCI in purchasing shares for clients’ accounts.
4. SCI provides financial planning services primarily for individuals and families regarding
the management of their financial resources based on an analysis of their needs and
circumstances. These services generally include budgeting, education planning,
retirement planning, estate planning, and gifting strategies. SCI typically conducts a
complimentary initial consultation. Following the consultation, if the client decides to
engage SCI for financial planning services, detailed information about the client’s
financial situation and objectives are gathered. In performing these services, SCI is not
required to verify any information received from the client or from the client's other
professionals (e.g., attorneys, accountants, etc.,) and is expressly authorized to rely on
such information. The company then reviews and analyzes the data with third party
planning software, including eMoney. A digital financial plan is created and presented
to the client. The primary objective of this process is to assist the client in developing
a strategy for saving, spending, and managing their assets and liabilities to meet their
financial objectives. SCI only provides financial planning services for clients that are,
or expect to become, investment management clients.
Clients should be aware that different financial planning software uses different
financial planning methodologies, and the financial plan will describe the specific
methodologies used for the particular plan and should be carefully considered in
evaluating the results presented to the client. The outputs generated by the software
utilize third-party proprietary formulas and are based on economic assumptions and
forecasts approved by SCI. In addition, clients’ financial plans may include a Monte
Carlo simulation. Monte Carlo simulations are used to show how variances in rates of
return each year can affect results. Results using Monte Carlo simulations indicate the
likelihood that an event may occur as well as the likelihood that it may not occur. SCI
may change the software, third- party provider, or the methodologies it uses when
creating your financial plan. Your financial plan will provide details on the software and
methodologies used.
SCI does not participate in wrap fee programs.
SCI manages $308,750,302 on a discretionary basis and $306,866,758 on a non-
discretionary basis. These numbers are as of December 31, 2023.