Firm Description
Branson, Fowlkes & Company, Inc., (“BFCO”) was founded in 1990. BFCO provides
personalized investment advisory services to individuals, pension and profit sharing plans,
trusts, estates, charitable organizations and small to medium sized businesses. Advice is
provided through consultation with the client and may include: determination of financial
objectives, identification of financial problems, establishing risk volatility parameters, cash
flow management, and tax planning. This information is used to develop various investment
strategies which include asset allocations and the selection and monitoring of securities
(including open and closed end funds, mutual funds, and publicly traded stocks and bonds).
BFCO uses a multi-level approach to investment diversification called D
3 The Power of
Diversification TM.
In addition to personalized investment advisory services BFCO may offer advisory services in
other areas which are referred to as Financial Planning. Investment advice is an integral part of
financial planning. Other common areas included in Financial Planning include advising clients
regarding cash flow, college planning, retirement planning, tax planning, insurance review, risk
management, and estate planning.
Other professionals (e.g., lawyers, accountants, insurance agents, etc.) are engaged directly by
the client, or sub-contracted, 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 consultation to determine the extent to which financial planning and investment
management may be beneficial to the client.
Principal Owners
BFCO is owned by its founders Jay Branson and Maco Fowlkes. They are each 50%
shareholders.
Types of Advisory Services
BFCO provides investment advisory services, also known as asset management services and
furnishes investment advice through consultations. On an occasional basis, BFCO furnishes
advice to clients on matters not involving securities, such as financial planning matters, taxation
issues, and trust services that often include estate planning.
As of December 31st, 2022, BFCO, manages approximately $ 308,792,000 in assets for
approximately 179 clients. Approximately $ 262,816,652 is managed on a discretionary basis,
and $ 45,975,348 is managed on a non-discretionary basis.
Tailored Relationships
The goals, objectives, and investment suitability for each client are documented in our client
files. For example, in some cases we may use a questionnaire to explore a client’s tolerance for
risk. For some portfolios we may create a written Investment policy statement which reflects
the clients stated goals and objectives. Clients may impose restrictions on investing in certain
securities or types of securities.
Types of Agreements
The following agreements define the typical client relationships.
Financial Planning Agreement
It is our general policy that Financial Planning clients select either a comprehensive financial
plan (Review, analysis, and recommendations on Cash Flow, Investments, Income Taxes,
Retirement, Fringe Benefits, Risk Management, and Estate Planning) or a modular plan (a
financial plan limited to one or more areas of a comprehensive plan). Financial Plans are
prepared by individuals designated by BF&CO who are qualified in financial planning.
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.
The fees charged for financial planning services vary based on the complexity of the services
selected by the client and the amount of time estimated to prepare the plan document. It is our
general policy, and in most cases a fixed fee will be quoted in advance. Clients may choose
hourly consulting services which range from $75.00/Hr. to $250.00/Hr. based on the level of
expertise of the individual whose time is being billed. Financial Planning fees for
comprehensive and modular plans are charged 50% in advance and 50% within 30 days. Other
financial planning fees are billed to clients and payable upon receipt. Clients may terminate a
financial planning contract at any time through written notice and receive an itemized statement
for services rendered and refund for any unearned fees collected. In some circumstances
BF&CO may prepare financial reports and analysis for clients, or prospective clients, without
charging a fee.
In some cases BFCO may do research, prepare reports, and do other analysis, on a reduced fee,
or gratis basis. The determination on whether to charge a full, reduced, or gratis fee is made by
the Advisor based on the time and complexity of services desired, and in consideration of the
entire client relationship. BFCO may rely upon the opinions of other advisors including
attorneys, accountants, and financial planners.
Investment Advisory Agreement
The services to be provided and fee for an Investment Advisory Agreement are provided to the
client in writing when the account(s) to be managed are established. An Investment Advisory
Agreement includes, but is not limited to the following services:
a. Assisting clients in: (1) establishing, reviewing and changing the investment objectives
of the Account, and (2) developing and/or selecting performance standards to measure
short-, intermediate-, and long-term Account returns.
b. Determining, reviewing, and changing the allocation and diversification of assets in the
Account and executing asset allocation software models using variables suitable to the
Account.
c. Purchasing securities consistent with the Account's investment objectives and asset
allocation needs.
d. Reporting account investment results quarterly and reviewing the reports and
accompanying graphics with you to assist you in understanding their contents.
e. Conducting annual meetings at BFCO’s offices to discuss Account performance.
The annual Investment Advisory Agreement fee is based on a percentage of the investable assets
according to the following schedules:
Balanced & Equity Accounts
1.00% on the first $1,000,000;
.75% on the next $2,000,000 (from 1,000,001 to 3,000,000); and
.50% on the next $2,000,000 (from $3,000,001 to $5,000,000)
.50% or as agreed thereafter
Fixed Income (Bond) Accounts
.30% on the first $ 5,000,000;
.25% on the next $ 5,000,000 (from $5,000,001 to $10,000,000); and
.25% or as agreed thereafter
The minimum annual fee is $ 2,500.00 and is negotiable in some cases. Some current client
relationships may exist where the fees are higher or lower than the fee schedule above.
In some cases BF&CO will provide investment management services for the account of a 401(k)
plan participant and not for the entire 401(k) plan. In these cases the advisory fee is determined
by the complexity of the plan, operational restrictions, and the size of the participant's account.
Fees can range from the normal fee schedule referenced above to as low as .25% annually.
BF&CO may, under special circumstances, negotiate fees and/or offer services on a gratis basis.
The circumstances may include, but not be limited to, members of an employee or client’s
extended family, certain non-profit organizations, and non-managed accounts.
Although the Advisory Service Agreement is an ongoing agreement and may require periodic
adjustments, the length of service to the client is at the client’s discretion. The client or BFCO
may terminate an Agreement by written notice to the other party. At termination, fees will be
adjusted based on the terms specified in the individual agreement (generally a refund or amount
due will be calculated based on the date of the written notice terminating the agreement).
Financial Planning Retainer Agreement
In some circumstances, a Financial Planning Retainer Agreement is executed in lieu of a
Comprehensive or Modular Financial Planning Agreement when the services desired by the
client are unspecified and the client may prefer to consult with the Advisor by telephone
regarding various financial planning related questions. The annual fee for a Financial Planning
Retainer Agreement is $ 2,500.00 and is negotiable.
Termination of Agreement
A Client may terminate any of the aforementioned agreements at any time based on the
individual terms specified in their respective agreements. Generally, a 30 day written notice is
required notifying BFCO at the legal address indicated in their agreement. If there is a balance
due, or refund due for advance payment of advisory fees the payment or refund will be
calculated based on the terms described in their agreement.
BFCO may terminate any of the aforementioned agreements at any time by notifying the client
in writing. If the client made an advance payment, BFCO will refund any unearned portion of
the advance payment.