A. Circle Advisers Inc. (the “Registrant”) is a corporation formed on September 15, 1982 in
the State of Delaware. The Registrant became an SEC registered Investment Adviser Firm
in January 1983. The Registrant is principally owned by Circle Consulting Group, Inc.
Thomas Martin is the Registrant’s President.
B. As discussed below, the Registrant offers to its clients (individuals, pension and profit
sharing plans, etc.) investment advisory services, and, to the extent specifically requested
by a client, financial planning and related consulting services.
INVESTMENT ADVISORY SERVICES
The client can determine to engage the Registrant to provide non-discretionary investment
advisory services on a fee basis. The Registrant’s annual investment advisory fee is based
upon a percentage (%) of the market value of the assets placed under the Registrant’s
management.
The Registrant shall provide investment advisory services specific to the needs of each
client. Prior to providing investment advisory services, an investment adviser
representative will ascertain each client’s investment objective(s). Thereafter, the
Registrant shall allocate and/or recommend that the client allocate investment assets
consistent with the designated investment objective(s). The client may, at any time, impose
reasonable restrictions, in writing, on the Registrant’s services.
COMPREHENSIVE REPORTING
Registrant may also provide comprehensive reporting services which can incorporate all of
the client’s investment assets, including those investment assets that are not part of the
assets managed by Registrant (the “Excluded Assets”). Should the client receive such
reporting services, the client acknowledges and understands that with respect to the
Excluded Assets, Registrant’s service is limited to reporting services only and does not
include investment management, review, or monitoring services, nor investment
recommendations or advice. Unless agreed to otherwise, in writing, the client and/or
his/her/its other advisors that maintain trading authority, and not Registrant, shall be
exclusively responsible for the investment performance of the Excluded Assets. Unless
also agreed to otherwise, in writing, Registrant does not provide investment management,
monitoring or implementation services for the Excluded Assets. In the event the client
desires that Registrant provide investment management services with respect to the
Excluded Assets, the client may engage Registrant to do so for a separate and additional
fee pursuant to the terms and conditions of an Investment Advisory Agreement between
Registrant and the client.
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
To the extent requested by a client, the Registrant may determine to provide financial
planning and/or consulting services (including investment and non-investment related
matters, including estate planning, insurance planning, etc.) on a stand-alone separate fee
basis. Registrant’s planning and consulting fees are negotiable, but generally range from
$2,500 to $6,000 on a fixed fee basis, and from $125 to $500 on an hourly rate basis,
depending upon the level and scope of the service(s) required and the professional(s)
rendering the service(s). Prior to engaging the Registrant to provide planning or consulting
services, clients are generally required to enter into a Financial Planning and Consulting
Agreement with Registrant setting forth the terms and conditions of the engagement
(including termination), describing the scope of the services to be provided, and the portion
of the fee that is due from the client prior to Registrant commencing services. If requested
by the client, Registrant may recommend the services of other professionals for
implementation purposes, including certain of Registrant’s representatives in their
individual capacities as licensed insurance agents. (See disclosure at Item 10 C.). The
recommendation by Registrant’s supervised persons, that a client purchase an insurance
commission product presents a conflict of interest, as the receipt of commissions may
provide an incentive to recommend insurance products based on commissions received,
rather than on a particular client’s need. The client is under no obligation to engage the
services of any such recommended professional. The client retains absolute discretion over
all such implementation decisions and is free to accept or reject any recommendation from
the Registrant. Please Note: If the client engages any such recommended professional, and
a dispute arises thereafter relative to such engagement, the client agrees to seek recourse
exclusively from and against the engaged professional. At all times, the engaged licensed
professional[s] (i.e., attorney, accountant, insurance agent, etc.), and not Registrant, shall
be responsible for the quality and competency of the services provided. Please Also Note:
Registrant believes that it is important for the client to address financial planning issues on
an ongoing basis. It remains the client’s responsibility to promptly notify the Registrant in
writing if there is ever any change in his/her/its financial situation or investment objectives
for the purpose of reviewing/evaluating/revising Registrant’s previous recommendations
and/or services.
Limitations of Financial Planning and Non-Investment Consulting/Implementation
Services. To the extent requested and engaged by the client to do so, Registrant will
generally provide financial planning and related consulting services regarding matters such
as tax and estate planning, insurance, etc. per the terms and conditions of a separate
agreement and a separate fee as discussed at Item 5 below, the fee for which shall generally
be based upon the individual providing the service and the scope of the services to be
provided. Prior to engaging Registrant to provide planning or consulting services, clients
are generally required to enter into a Financial Planning and Consulting Agreement with
Registrant setting forth the terms and conditions of the engagement (including termination),
describing the scope of the services to be provided, and the portion of the fee that is due
from the client prior to Registrant commencing services.
Please Note: Retirement Rollovers-Potential for Conflict of Interest: A client or
prospective client leaving an employer typically has four options regarding an existing
retirement plan (and may engage in a combination of these options): (i) leave the money in
the former employer’s plan, if permitted, (ii) roll over the assets to the new employer’s
plan, if one is available and rollovers are permitted, (iii) roll over to an Individual
Retirement Account (“IRA”), or (iv) cash out the account value (which could, depending
upon the client’s age, result in adverse tax consequences). If Registrant recommends that a
client roll over their retirement plan assets into an account to be managed by Registrant,
such a recommendation creates a conflict of interest if Registrant will earn new (or increase
its current) compensation as a result of the rollover. If Registrant provides a
recommendation as to whether a client should engage in a rollover or not (whether it is
from an employer’s plan or an existing IRA), Registrant is acting as a fiduciary within the
meaning of Title I of the Employee Retirement Income Security Act and/or the Internal
Revenue Code, as applicable, which are laws governing retirement accounts. No client is
under any obligation to roll over retirement plan assets to an account managed by
Registrant, whether it is from an employer’s plan or an existing IRA. Registrant’s
Chief Compliance Officer, Eric Block, remains available to address any questions that
a client or prospective client may have regarding the potential for conflict of interest
presented by such rollover recommendation.
MISCELLANEOUS
Non-Investment Consulting/Implementation Services. To the extent requested by the
client, the Registrant may provide consulting services regarding non-investment related
matters, such as estate planning, tax planning, insurance, executive compensation and
employment terms negotiations, etc. Neither the Registrant, nor any of its representatives,
serves as an accountant, and no portion of the Registrant’s services should be construed
as same. To the extent requested by a client, the Registrant may recommend the services of
other professionals for certain non-investment implementation purposes (i.e. attorneys,
accountants, insurance agents, etc.), including certain representatives of the Registrant in
their separate licensed capacities as discussed below. The client is under no obligation to
engage the services of any such recommended professional. The client retains absolute
discretion over all such implementation decisions and is free to accept or reject any
recommendation from the Registrant. Please Note: If the client engages any such
recommended professional, and a dispute arises thereafter relative to such engagement, the
client agrees to seek recourse exclusively from and against the engaged professional. At all
times, the engaged licensed professional[s] (i.e., attorney, accountant, insurance agent,
etc.), and not Registrant, shall be responsible for the quality and competency of the services
provided. Please Also Note: It remains the client’s responsibility to promptly notify the
Registrant in writing if there is ever any change in his/her/its financial situation or
investment objectives for the purpose of reviewing/evaluating/revising Registrant’s
previous recommendations and/or services. Please Also Note: Registrant’s Principal,
Thomas Martin, is a licensed attorney. Mr. Martin, however, does not provide legal services
to Registrant’s clients and no attorney-client relationship exists.
Insurance Agent. To the extent requested by a client, we may recommend the services of
certain of Registrant’s representatives in their separate individual capacities as licensed
insurance agents. The client is under no obligation to engage the services these
professionals. Please Note-Conflict of Interest: The recommendation that a client
purchase an insurance commission product from these professions in their individual
capacities as insurance agents, presents a conflict of interest, as the receipt of commissions
may provide an incentive to recommend insurance products based on commissions to be
received, rather than on a particular client’s need. The fees charged and compensation
derived from the sale of such insurance is separate from, and in addition to, Registrant’s
investment advisory fee. No client is under any obligation to purchase insurance
commission products from Registrant’s representatives. Clients are reminded that they may
purchase insurance products recommended by a Registrant’s representatives through other,
non-affiliated insurance agents. ANY QUESTIONS: Registrant’s Chief Compliance
Officer, Eric Block, remains available to address any questions that a client or
prospective client may have regarding the above conflicts of interest.
Other Business Activities. Mr. Martin is also a Principal of Circle Benefit Planning
Corporation. Circle Benefit is also a subsidiary of Registrant’s parent company, Circle
Consulting Group, Inc.
Other Financial Industry Activities. Prior to 1990, Circle Consulting Group, Inc. and
certain of its subsidiary companies, served as general partner in various limited partnerships
in which certain clients of Registrant joined as limited partners. Although Circle Consulting
Group, Inc. still serves as general partner to those limited partnerships that remain active,
Circle Consulting Group, Inc. has not formed any limited partnerships since 1989, and
correspondingly, no clients of Registrant have joined, nor have been solicited to join, any
such venture as limited partners, or in any other capacity, since that date.
Please Note: Non-Discretionary Service Limitations. Clients that determine to engage
the Registrant on a non-discretionary investment advisory basis must be willing to accept
that the Registrant cannot effect any account transactions without
obtaining prior verbal
consent to any such transaction(s) from the client. Thus, in the event of a market correction
during which the client is unavailable, the Registrant will be unable to affect any account
transactions (as it would for its discretionary clients) without first obtaining the client’s
verbal consent.
ERISA Section 404(c) Investment Management
Currently, the Registrant renders consulting services to the sponsors of several “participant
directed” retirement plan established by the sponsor pursuant to Section 404(c) of ERISA.
Section 404(c) permits a Plan participant to exercise control over the assets contained in
his/her individual retirement account. Registrant provides the Plan sponsor with advice
relative to the investment alternatives available for Plan participants to choose from. In
addition, if requested by the sponsor, the Registrant shall provide Plan participants with
general impersonal informational seminars and/or materials which describe or explain the
various investment options available to them under the Plan. Registrant may render similar
consulting services to additional Plan sponsors in the future.
ERISA 3(21) Fiduciary
Currently, the Registrant provides investment advisory services, on a non-discretionary
basis to several defined benefit plans. As an ERISA 3(21) fiduciary, the Registrant makes
only recommendations to the plan sponsor and/or investment committee and does not
accept discretionary authority.
Please Note-Use of Mutual and Exchange Traded Funds: Registrant utilizes mutual
funds and exchange traded funds for its client portfolios. In addition to Registrant’s
investment advisory fee described below, and transaction and/or custodial fees discussed
above, clients will also incur, relative to all mutual fund and exchange traded fund
purchases, charges imposed at the fund level (e.g., management fees and other fund
expenses).
Custodian Charges-Additional Fees. As discussed below at Item 12 below, when
requested to recommend a broker-dealer/custodian for client accounts, Registrant generally
recommends that Schwab or Fidelity serve as the broker-dealer/custodian for client
investment management assets. Broker-dealers such as Schwab and Fidelity charge
brokerage commissions, transaction, and/or other type fees for effecting certain types of
securities transactions (i.e., including transaction fees for certain mutual funds, and mark-
ups and mark-downs charged for fixed income transactions, etc.). The types of securities
for which transaction fees, commissions, and/or other type fees (as well as the amount of
those fees) shall differ depending upon the broker-dealer/custodian. While certain
custodians, including Schwab and Fidelity, generally (with the potential exception for large
orders) do not currently charge fees on individual equity transactions (including ETFs),
others do. Please Note: there can be no assurance that Schwab and/or Fidelity will not
change their transaction fee pricing in the future. Please Also Note: Fidelity and Schwab
may also assess fees to clients who elect to receive trade confirmations and account
statements by regular mail rather than electronically. Tradeaways: When beneficial to the
client, individual fixed‐income and/or equity transactions may be effected through broker‐
dealers with whom Registrant and/or the client have entered into arrangements for prime
brokerage clearing services, including effecting certain client transactions through other
SEC registered and FINRA member broker‐dealers (in which event, the client generally
will incur both the transaction fee charged by the executing broker‐dealer and a “trade-
away” fee charged by Schwab and/or Fidelity). The above fees/charges are in addition to
Registrant’s investment advisory fee at Item 5 below. Registrant does not receive any
portion of these fees/charges. ANY QUESTIONS: Registrant’s Chief Compliance
Officer, Name of CCO, remains available to address any questions that a client or
prospective client may have regarding the above.
Please Note: Cash Positions. Registrant treats cash as an asset class. As such, unless
determined to the contrary by Registrant, all cash positions (money markets, etc.) shall be
included as part of assets under management for purposes of calculating the Registrants’
advisory fee. At any specific point in time, depending upon perceived or anticipated market
conditions/events (there being no guarantee that such anticipated market conditions/events
will occur), the Registrant may maintain cash positions for defensive purposes. In addition,
while assets are maintained in cash, such amounts could miss market advances. Depending
upon current yields, at any point in time, Registrant’s advisory fee could exceed the interest
paid by the client’s money market fund. ANY QUESTIONS: Registrant’s Chief
Compliance Officer, Eric Block, remains available to address any questions that a
client or prospective may have regarding the above fee billing practice.
Margin Accounts: Risks/Conflict of Interest. Registrant does not recommend the use of
margin for investment purposes. A margin account is a brokerage account that allows
investors to borrow money to buy securities and/or for other non-investment borrowing
purposes. The broker/custodian charges the investor interest for the right to borrow money
and uses the securities as collateral. By using borrowed funds, the customer is employing
leverage that will magnify both account gains and losses. Should a client determine to use
margin, Registrant will include the entire market value of the margined assets when
computing its advisory fee. Accordingly, Registrant’s fee shall be based upon a higher
margined account value, resulting in Registrant earning a correspondingly higher advisory
fee. As a result, the potential of conflict of interest arises since Registrant may have an
economic disincentive to recommend that the client terminate the use of margin. Please Note:
The use of margin can cause significant adverse financial consequences in the event of a
market correction. ANY QUESTIONS: Our Chief Compliance Officer, Eric Block,
remains available to address any questions that a client or prospective client may have
regarding the use of margin.
Portfolio Activity. Registrant has a fiduciary duty to provide services consistent with the
client’s best interest. Registrant will review client portfolios on an ongoing basis to determine
if any changes are necessary based upon various factors, including, but not limited to,
investment performance, market conditions, fund manager tenure, style drift, account
additions/withdrawals, and/or a change in the client’s investment objective. Based upon these
factors, there may be extended periods of time when Registrant determines that changes to a
client’s portfolio are unnecessary. Clients remain subject to the fees described in Item 5
below during periods of portfolio inactivity. Of course, as indicated below, there can be no
assurance that investment decisions made by the Registrant will be profitable or equal any
specific performance level(s).
Client Obligations. In performing its services, Registrant shall not be required to verify
any information received from the client or from the client’s other professionals, and is
expressly authorized to rely thereon. Moreover, each client is advised that it remains
his/her/its responsibility to promptly notify the Registrant in writing if there is ever any
change in his/her/its financial situation or investment objectives for the purpose of
reviewing/evaluating/revising Registrant’s previous recommendations and/or services.
Client Reporting
The Registrant may engage the services of unaffiliated technology providers to assist it in its
client reporting capabilities. In so doing, the Registrant shall require any such provider
to affirm its confidentiality obligations relative to all client related information.
Other Assets. A client may:
• hold securities that were purchased at the request of the client or acquired prior to
the client’s engagement of the Registrant. Generally, with potential exceptions, the
Registrant does not/would not recommend nor follow such securities, and
absent mitigating tax consequences or client direction to the contrary, would prefer
to liquidate such securities. Please Note: If/when liquidated, it should not be
assumed that the replacement securities purchased by the Registrant will outperform
the liquidated positions. To the contrary, different types of investments
involve varying degrees of risk, and there can be no assurance that future
performance of any specific investment or investment strategy (including the
investments and/or investment strategies recommended or undertaken by
the Registrant) will be profitable or equal any specific performance level(s)In
addition, there may be other securities and/or accounts owned by the client for which
the Registrant does not maintain custodian access and/or trading authority; and,
• hold other securities and/or own accounts for which the Registrant does not maintain
custodian access and/or trading authority.
Corresponding Services/Fees: When agreed to by the Registrant, the Registrant shall:
(1) remain available to discuss these securities/accounts on an ongoing basis at the request
of the client; (2) shall generally consider these securities as part of the client’s overall asset
allocation; (3) report on such securities/accounts as part of regular reports that may be
provided by the Registrant; and, (4) include the market value of all such securities for
purposes of calculating advisory fee.
ANY QUESTIONS: The Registrant’s Chief Compliance Officer, Eric Block, remains
available to address any questions regarding the above.
Investment Risk. Different types of investments involve varying degrees of risk, and it
should not be assumed that future performance of any specific investment or investment
strategy (including the investments and/or investment strategies recommended or undertaken
by Registrant) will be profitable or equal any specific performance level(s).
Cybersecurity Risk. The information technology systems and networks that Registrant
and its third-party service providers use to provide services to Registrant’s clients employ
various controls, which are designed to prevent cybersecurity incidents stemming from
intentional or unintentional actions that could cause significant interruptions in Registrant’s
operations and result in the unauthorized acquisition or use of clients’ confidential or non-
public personal information. Clients and Registrant are nonetheless subject to the risk of
cybersecurity incidents that could ultimately cause them to incur losses, including for
example: financial losses, cost and reputational damage to respond to regulatory
obligations, other costs associated with corrective measures, and loss from damage or
interruption to systems. Although Registrant has established its systems to reduce the risk
of cybersecurity incidents from coming to fruition, there is no guarantee that these efforts
will always be successful, especially considering that Registrant does not directly control
the cybersecurity measures and policies employed by third-party service providers. Clients
could incur similar adverse consequences resulting from cybersecurity incidents that more
directly affect issuers of securities in which those clients invest, broker-dealers, qualified
custodians, governmental and other regulatory authorities, exchange and other financial
market operators, or other financial institutions
Disclosure Statement. A copy of the Registrant’s written Brochure as set forth on Part
2A of Form ADV and Form CRS (also known as the Client Relationship Summary) shall
be provided to each client prior to, or contemporaneously with, the execution of the
Investment Advisory Agreement or Financial Planning and Consulting Agreement.
C. The Registrant does not participate in a wrap fee program.
D. As of September 30, 2023, the Registrant had $674,928,600 in assets under management
on a non-discretionary basis.