Vertex Partners offers a variety of advisory services, which include financial planning, consulting, and
investment management services. Prior to Vertex Partners rendering any of the foregoing advisory services,
clients are required to enter into one or more written agreements with Vertex Partners setting forth the
relevant terms and conditions of the advisory relationship (the “Advisory Agreement”).
Vertex Partners filed for registration as an investment adviser in December 2021 and is owned by Gregory
Benner, Michael Bellis, Christopher Huston and Steven Franzen. As of December 2023, Vertex Partners
had $671,193,121 of assets under management; $669,972,075 of which was managed on a discretionary
basis and $1,221,046 of which was managed on a non-discretionary basis.
While this brochure generally describes the business of Vertex Partners, certain sections also discuss the
activities of its Supervised Persons, which refer to the Firm’s officers, partners, directors (or other persons
occupying a similar status or performing similar functions), employees or other persons who provide
investment advice on Vertex Partners’ behalf and are subject to the Firm’s supervision or control.
Vertex Partners provides advisory services through certain programs sponsored by LPL Financial LLC
(“LPL”), a registered investment advisor and broker-dealer. Vertex Partners has included a brief description
of each LPL advisory program that it intends to use. For more information regarding the LPL programs,
including more information on the advisory services and fees that apply, the types of investments available
in the programs and the potential conflicts of interest presented by the programs please see the program
account packet (which includes the account agreement and LPL Form ADV program brochure) and the
Form ADV, Part 2A of LPL or the applicable program.
Financial Planning and Consulting Services
Vertex Partners offers clients a broad range of financial planning and consulting services, which include
any or all of the following functions:
• Cash Flow Analysis
•
Trust and Estate Planning
• Retirement Planning
• Risk Management
•
Tax Management
• Education Planning
While each of these services is available on a stand-alone basis, certain of them can also be rendered in
conjunction with investment portfolio management as part of a comprehensive wealth management
engagement (described in more detail below).
In performing these services, Vertex Partners 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. Vertex Partners recommends certain clients engage the Firm for additional
related services, its Supervised Persons in their individual capacities as insurance agents or registered
representatives of a broker-dealer and/or other professionals to implement its recommendations. Clients
are advised that a conflict of interest exists for the Firm to recommend that clients engage Vertex Partners
or its affiliates to provide (or continue to provide) additional services for compensation, including
investment management services. Clients retain absolute discretion over all decisions regarding
implementation and are under no obligation to act upon any of the recommendations made by Vertex
Partners under a financial planning or consulting engagement. Clients are advised that it remains their
responsibility to promptly notify the Firm of any change in their financial situation or investment objectives
for the purpose of reviewing, evaluating or revising Vertex Partners’ recommendations and/or services.
Investment and Wealth Management Services
Vertex Partners provides certain clients with wealth management services which include a broad range of
financial planning and consulting services as well as discretionary and/or non-discretionary management
of investment portfolios.
Vertex Partners primarily allocates client assets among various mutual funds, exchange-traded funds
(“ETFs”), and independent investment managers (“Independent Managers”) in accordance with their stated
investment objectives.
Where appropriate, the Firm also provides advice about any type of legacy position or other investment
held in client portfolios, but clients should not assume that these assets are being continuously monitored
or otherwise advised on by the Firm unless specifically agreed upon. Clients can engage Vertex Partners
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, Vertex Partners 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.
Vertex Partners tailors its advisory 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. Vertex Partners 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 Vertex Partners 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 Vertex Partners determines, in
its sole discretion, the conditions would not materially impact the performance of a management strategy
or prove overly burdensome to the Firm’s management efforts.
Sponsor and Manager of Wrap Program
Vertex Partners provides substantially all investment management services as the sponsor and manager of
the Vertex Partners Wrap Program (the “Wrap Program”), a wrap fee program (i.e., an arrangement where
certain brokerage commissions and transaction costs are absorbed by the Firm). Accounts managed through
the Wrap Program are done so in substantially the same manner as those managed under a non-wrap
arrangement. Participants in the Wrap Program may pay a higher or lower aggregate fee than if investment
management and brokerage services are purchased separately. Additional information about the Wrap
Program is available in Vertex Partners’ Wrap Brochure, which appears as Part 2A Appendix 1 of the
Firm’s Form ADV (the “Wrap Brochure”).
Retirement Plan Consulting Services
Vertex Partners 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 Review and Evaluation
•
Executive Planning & Benefits
• Investment Selection
• Plan Fee and Cost Analysis
• Plan Committee Consultation
•
Fiduciary and Compliance
• Participant Education
As disclosed in the Advisory Agreement, certain of the foregoing services are provided by Vertex Partners
as a fiduciary under 3(21) of 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 Vertex Partners’ fiduciary status, the specific services to be rendered and all direct and
indirect compensation the Firm reasonably expects under the engagement.
Use of Independent Managers
As mentioned above, Vertex Partners selects certain Independent Managers to actively manage a portion
of its clients’ assets. The specific terms and conditions under which a client engages an Independent
Manager
are set forth in a separate written agreement with the designated Independent Manager. That
agreement can be between the Firm and the Independent Manager (often called a subadvisor) or the client
and the Independent Manager (sometimes called a separate account manager). In addition to this brochure,
clients will typically also receive the written disclosure documents of the respective Independent Managers
engaged to manage their assets.
Vertex Partners 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 Firm seeks
to assess the Independent Managers’ investment strategies, past performance and risk results in relation to
its clients’ individual portfolio allocations and risk exposure. Vertex Partners also takes into consideration
each Independent Manager’s management style, returns, reputation, financial strength, reporting, pricing
and research capabilities, among other factors.
Vertex Partners continues to provide services relative to the discretionary or non-discretionary selection of
the Independent Managers. On an ongoing basis, the Firm monitors the performance of those accounts
being managed by Independent Managers. Vertex Partners seeks to ensure the Independent Managers’
strategies and target allocations remain aligned with its clients’ investment objectives and overall best
interests. The client may incur additional fees than those charged by Vertex Partners.
In certain circumstances, Vertex Partners receives compensation pursuant to its agreements with the
Independent Managers for introducing clients to the Independent Managers and for certain ongoing services
provided to clients. This compensation is disclosed to the client in a separate disclosure document and is
typically equal to a percentage of the investment advisory fee charged by that Independent Manager or a
fixed fee.
Since compensation Vertex Partners receives may differ depending on the agreement with each Independent
Manager, Vertex Partners has an incentive to recommend an Independent Manager with a more favorable
compensation arrangements. Since the Independent Manager may pay the fee for the investment advisory
services of Vertex Partners, the fee paid to Vertex Partners is not negotiable, under most circumstances.
Fees paid by clients to the Independent Managers are established and payable in accordance with the
disclosure documents of each Independent Manager, and may or may not be negotiable, as disclosed in the
disclosure documents of the Independent Manager.
Certain Independent Manager(s) may impose more restrictive account requirements and varying billing
practices than Vertex Partners. In such instances, Vertex Partners may alter its corresponding account
requirements and/or billing practices to accommodate those of the Independent Manager(s) or wrap fee
program sponsor.
The Firm expects to use certain of the LPL programs as discussed herein which use Independent Managers.
In addition, the Firm expects to use the Natixis Investment Managers Solutions program for clients with
accounts at Charles Schwab & Co., Inc..
Natixis Investment Managers Solutions
Natixis Investment Managers Solutions offers a platform at Charles Schwab & Co., Inc. to run multiple
Independent Managers within a single account (Unified Managed Account). The Firm will assist clients in
identifying
third part portfolio managers from a list of Independent Managers available through the Natixis Investment
Managers Solutions platform, and also available on the LPL Manager Access Select platform. In the Natixis
Investment Managers Solutions Platform, clients authorize Natixis to direct the investment and
reinvestment of the assets in their accounts, and performance tax loss harvesting, in accordance with the
selected model portfolio provided by Natixis, Vertex Partners, or a third-party investment advisor.
A minimum account value of $50,000 is required for Natixis Investment Managers Solutions, however, in
certain instances, the minimum account size may be lower or higher.
Natixis Investment Managers Solutions Direct Indexing
Natixis Investment Managers Solutions Direct Indexing provides fully customizable separately managed
accounts that seek to match index returns pre-tax while producing enhanced after-tax returns. These
separately managed account portfolios can be customized for tax purposes, to align with investor values
and concerns, or a combination of both. All accounts are actively managed to optimize tax loss harvesting
while providing beta exposure to an index. This type of solution can help investors mitigate tax liability in
their portfolios, minimize capital gains and plan for future taxable events.
Use of LPL Programs
As described above, the Firm expects to use the following LPL programs.
Manager Access Select Program
Manager Access Select offers clients the ability to participate in the Separately Managed Account Platform
(the “SMA Platform”) or the Model Portfolio Platform (the “MP Platform”). In the SMA Platform, Vertex
Partners will assist client in identifying a third party portfolio manager (the Independent Manager) from a
list of Independent Managers made available by LPL, and the Independent Manager manages client’s assets
on a discretionary basis. Vertex Partners will provide initial and ongoing assistance regarding the
Independent Manager selection process. In the MP Platform, clients authorize LPL to direct the investment
and reinvestment of the assets in their accounts, in accordance with the selected model portfolio provided
by LPL’s Research Department or a third-party investment advisor.
A minimum account value of $50,000 is required for Manager Access Select, however, in certain instances,
the minimum account size may be lower or higher.
Optimum Market Portfolios Program (OMP)
OMP offers clients the ability to participate in a professionally managed asset allocation program using
Optimum Funds shares. Under OMP, client will authorize LPL on a discretionary basis to purchase and
sell Optimum Funds pursuant to investment objectives chosen by the client. Vertex Partners will assist the
client in determining the suitability of OMP for the client and assist the client in setting an appropriate
investment objective. Vertex Partners will have discretion to select a mutual fund asset allocation portfolio
designed by LPL consistent with the client’s investment objective. LPL will have discretion to purchase
and sell Optimum Funds pursuant to the portfolio selected for the client. LPL will also have authority to
rebalance the account.
A minimum account value of $10,000 is required for OMP. In certain instances, LPL will permit a lower
minimum account size.
Model Wealth Portfolios Program (MWP)
MWP offers clients a professionally managed mutual fund asset allocation program. Vertex Partners will
obtain the necessary financial data from the client, assist the client in determining the suitability of the
MWP program and assist the client in setting an appropriate investment objective. Vertex Partners will
initiate the steps necessary to open an MWP account and have discretion to select a model portfolio designed
by LPL’s Research Department consistent with the client’s stated investment objective. LPL’s Research
Department, a third-party portfolio strategist and/or Vertex Partners, through its investment adviser
representative, may act as a portfolio strategist responsible for selecting the mutual funds or ETFs within a
model portfolio and for making changes to the mutual funds or ETFs selected.
The client will authorize LPL to act on a discretionary basis to purchase and sell mutual funds and ETFs
and to liquidate previously purchased securities. The client will also authorize LPL to effect rebalancing
for MWP accounts.
MWP requires a minimum asset value for a program account to be managed. The minimums vary depending
on the portfolio(s) selected and the account’s allocation amongst portfolios. The lowest minimum for a
portfolio is $25,000. In certain instances, a lower minimum for a portfolio is permitted.