First Kentucky Securities Corporation is an SEC-registered investment adviser with its principal
place of business located in Louisville, Kentucky. First Kentucky Securities Corporation
(hereinafter "FKSC" or "Firm" or "we") began conducting business as an investment adviser in
2007.
As of September 30, 2023, assets under our Firm’s management were $261,746,894.89 of client assets on a
discretionary basis, and $273,545,906.75 of client assets on a non-discretionary basis.
FKSC offers the following services and programs to our clients:
I. RBC Capital Markets Services (offered through our clearing Firm arrangement)
1. Consulting Solutions Program – a wrap fee program sponsored by RBC
2. RBC Unified Portfolio Program – a wrap fee program sponsored by RBC
3. Unbundled Managed Account Solutions (UMAS) - a wrap fee
program sponsored by FKSC*
4. FKSC Advisory Fee Program (Non-Wrap) sponsored by FKSC
II. Financial Planning Services
III. Securities Rating Services
IV. Consulting Services
This Brochure does not constitute an offer to sell or solicitation of an offer to buy any
securities. Persons reviewing this Brochure should not construe this as an offer to sell or
solicitation of an offer to buy the securities of any of the Funds described herein.
*See Appendix 1: First Kentucky Securities Corp - Wrap Fee Program Brochure for details.
FKSC provides continuous advice to a client based on the individual needs of the client. Through
personal discussions in which goals and objectives of a client's particular circumstances are
established, we develop a client's personal investment policy and create and manage a portfolio
based on that policy. During our data-gathering process, we determine the client’s individual
objectives, time horizons, risk tolerance, and liquidity needs. As appropriate, we also review and
discuss a client's prior investment history, as well as family composition and background.
We manage advisory accounts on a discretionary or non-discretionary basis. Account supervision
is guided by the client's stated objectives (i.e., maximum capital appreciation, growth, income, or
growth and income), as well as tax considerations.
Clients may impose reasonable restrictions on investing in certain securities, types of securities,
or industry sectors.
Our investment recommendations are not limited to any specific product or service offered
by a broker-dealer or insurance company and will generally include advice regarding the
following securities:
• Exchange-listed securities
• Securities traded over-the-counter
• Corporate debt securities (other than commercial paper)
• Certificates of deposit
• Municipal securities
• Variable annuities
• Mutual fund shares
• United States governmental securities
• Options contracts on securities
• Interests in partnerships investing in real estate
• Interests in partnerships investing in oil and gas interests
• Publicly-traded master limited partnerships(MLPs)
• Designated unit investment trusts (UITs)
Because some types of investments involve certain additional degrees of risk, they will only be
implemented/recommended when consistent with the client's stated investment objectives,
tolerance for risk, liquidity and suitability.
I. RBC CAPITAL MARKETS SERVICES
Consulting Solutions Program
Consulting Solutions is a fee-based investment advisory Program sponsored by RBC CS and
made available to FKSC as an introducing-broker to RBC CS through which your account is
managed by one or more professional investment managers participating in the Program. Your
Financial Advisor may provide you with information on investment managers whose investment
philosophy and objectives may be compatible with your risk profile, and you select the
investment manager. RBC CS makes available Investment Managers who meet RBC CS’
eligibility requirements for participation in the Program.
For more information about the operation of the RBC Consulting Solutions Program, please
see the RBC Consulting Solutions Program Agreement, Terms and Conditions and RBC
Advisory Programs Disclosure Document.
RBC Unified Portfolio Program
RBC Unified Portfolio is a unified managed account “UMA” program through which your
Account is professionally managed by RBC CM as Overlay Manager. The Overlay Manager
manages the Account through investments in mutual funds, ETPs, and/or in accordance with one
or more model portfolios provided by Model Providers or RBC CS, all in a single Account. Your
FKSC Financial Advisor will provide you with information on mutual funds, ETPs, and/or model
portfolios representing different investment styles and strategies that will be compatible with
your Risk Profile.
For more information about the operation of the RBC Unified Portfolio Program, please see
the RBC Unified Portfolio Program Agreement, Terms and Conditions and RBC
Correspondent Services Advisory Programs Disclosure Document.
The Consulting Solutions Program and RBC Unified Portfolio Program are wrap fee programs
(together, the “Programs”) sponsored by RBC Capital Markets and offered through RBC
Correspondent Services, a division of RBC Capital Markets Corporation, Member
NYSE/FINRA/SIPC ("RBC"). FKSC may recommend and refer its clients to various third-
party money managers available through the Programs.
FKSC will assist clients with the identification of investment objectives through preparation of a
risk profile questionnaire and will assist clients in the selection of appropriate money managers
available through the Programs. Client accounts may also be invested in model portfolios
provided by third party money managers available through the Programs. Clients may grant
FKSC the authority to select or re-allocate client’s assets amongst third party managers on a non-
discretionary basis.
On at least an annual basis, FKSC will meet or speak with clients to review the performance of
Client's account, investment guidelines and other relevant factors in order to assess what changes,
if any should be made to the management of client's account.
The money managers selected under the Programs will have discretion to determine the securities
to be bought or sold within the client’s accounts subject to reasonable restrictions imposed by the
client, subject to the client’s signature on the money manager’s account agreement.
The Programs are wrap fee programs where custody and brokerage fees are included in the total
advisory fee charged to the client, subject to the exceptions of certain fees stated in RBC's
Program Brochure.
Clients should refer to RBC’s disclosure brochure for additional information regarding the
Program.
• Wrap Fee Programs may not be suitable for all investment needs, and any decision to
participate in a Wrap Fee Program should be based on the client’s individual financial
circumstances and investment goals.
• The benefits under a Wrap Fee Program depend, in part, upon the size of a client’s
account and the number of transactions likely to be generated in the account. For
example, Wrap Fee Accounts may not be suitable for accounts with little activity.
Participating in a Wrap Fee Program may cost more or less than the cost of purchasing
such services separately from a broker-dealer.
• FKSC receives compensation as a result of the client’s participation in the Programs which
may be more than what FKSC would receive if the client paid separately for investment
advice, brokerage and other services.
• FKSC may have a financial incentive to recommend the Programs over other
programs and services.
In determining whether to establish a Program account, a client should be aware that the overall
cost to the client may be higher or lower than
the client might incur by purchasing separately
the types of securities available in the Program.
Unbundled Managed Account Solutions (UMAS) – FKSC Wrap Fee Program sponsored
by FKSC
The FKSC Wrap Fee Program offers portfolio management services to clients as the sponsor
and portfolio manager of the FKSC Wrap Fee Program. A wrap fee program is an investment
management program that provides the client with advisory and brokerage execution services
for an inclusive fee which incorporates charges for advisory services, custody, clearing,
transaction execution and account reporting. For more information regarding the Program,
including the fee schedule and other important considerations, clients should refer to Part 2A
Appendix 1 of Form ADV: Wrap Fee Program Brochure.
FKSC Advisory Fee Program (Non-Wrap) sponsored by FKSC
The FKSC Advisory Fee Program seeks to help clients develop and reach financial goals
through a thoughtful combination of technology, expertise and the use of financial
investments. In consultation with a client, information is gathered related to client’s
current and future financial needs, existing resources, goals, and risk tolerance. A
proposal to the investment approach is presented, and if accepted, implemented and
monitored according to the client’s objectives.
The adviser may propose investment portfolios consisting of mutual funds, exchange traded funds
(ETFs), individual stocks and bonds, or other suitable securities. If a client agrees to engage our
services, we will work to open new accounts, move assets to our clearing Firm RBC
Correspondent Services, and begin executing on our annual service model. Any changes to a
client’s personal or financial situation must be communicated immediately so we can take that
information into consideration.
The FKSC Advisory Fee Program offers investment management services on a non-discretionary
basis, meaning that client authorization is obtained before entering any buy or sell orders in a
client account.
The terms and conditions under which a client shall engage our investment practice for advisory
services shall generally be set forth in an agreement between the client and our Firm. Clients
may terminate these contracts at any time upon written notification (see Termination of the
Advisory Relationship under General Information).
II. FINANCIAL PLANNING SERVICES
We provide financial planning services. Financial planning is a comprehensive evaluation of a
client’s current and future financial state by using currently known variables to predict future
cash flows, asset values and withdrawal plans. Through the financial planning process, all
questions, information and analysis are considered as they impact and are impacted by the entire
financial and life situation of the client. Clients purchasing this service receive a written report
which provides the client with a detailed financial plan designed to assist the client achieve his
or her financial goals and objectives.
In general, the financial plan can address any or all of the following areas:
• PERSONAL: We review family records, budgeting, personal liability, estate
information and financial goals.
• TAX & CASH FLOW: We analyze the client’s income tax and spending and planning for
past, current and future years; then illustrate the impact of various investments on the client's
current income tax and future tax liability.
• INVESTMENTS: We analyze investment alternatives and their effect on the client's portfolio.
• INSURANCE: We review existing policies to ensure proper coverage for life, health,
disability, long-term care, liability, home and automobile.
• RETIREMENT: We analyze current strategies and investment plans to help the
client achieve his or her retirement goals. DEATH & DISABILITY: We review the
client’s cash needs at death, income needs of surviving dependents, estate planning
and disability income.
• ESTATE: We assist the client in assessing and developing long-term strategies, including
as appropriate, living trusts, wills, review estate tax, powers of attorney, asset protection
plans, nursing homes, Medicaid and elder law.
We gather required information through in-depth personal interviews. Information gathered
includes the client's current financial status, tax status, future goals, returns objectives and
attitudes towards risk. We carefully review documents supplied by the client, including a
questionnaire completed by the client, and prepare a written report. Should the client choose to
implement the recommendations contained in the plan, we suggest the client work closely with
his/her attorney, accountant, insurance agent, and/or stockbroker. Implementation of financial
plan recommendations is entirely at the client's discretion.
We also provide general non-securities advice on topics that may include tax and
budgetary planning, estate planning and business planning.
Typically, the financial plan is presented to the client within six months of the contract date,
provided that all information needed to prepare the financial plan has been promptly provided.
Financial Planning recommendations are not limited to any specific product or service offered
by a broker-dealer or insurance company. All recommendations are of a generic nature.
III SECURITIES RATING SERVICES
First Kentucky Securities Corporation, doing business as First Credit Advisors (FCA),
provides timely and in-depth company-specific or security-specific equity research for
institutional clients including, among others, investment managers or other advisers to
hedge funds or other private funds, investment companies and pension or profit-sharing
plans. FCA's research and analysis is widely available to institutional advisers and others
through web-based, broker research sites. In addition, we may distribute research reports
directly to clients that have done business with our Firm in the past twelve-month period.
We conduct research regarding issuers or securities through competition and market analysis,
economic modeling, earnings forecasts and valuation, among other factors. FCA generally
provides research and analysis for equities of predominantly U.S. issuers in the technology,
media, telecommunications, and consumer goods sectors. FCA analyzes fundamental data taken
from original sources and/or publicly available reports. As appropriate, our information-
gathering process may include on-site inspections of company operations, manufacturing, retail
outlets and/or interviews with senior-level management.
FCA will also formulate a buy, hold or sell recommendation and price target based on its
investment philosophy focusing, primarily, on an issuer's prospects for long-term growth taking
into consideration its market share, competitive position and anticipated consumer demand for
products or services, capital strength, profitability and appropriate valuations. Once we have
initiated coverage of a particular issuer or security, we will provide regular updates regarding the
status of such issuer or security including any changes in inventory or resource access or supply,
demand, competition or technology, among other factors, that could impact our outlook or
valuation.
I.V. CONSULTING SERVICES
Clients can also receive investment advice on a more focused basis. This includes advice on
only an isolated area of concern such as estate planning, retirement planning, or any other
specific topic. We also provide specific consultation and administrative services regarding
investment and financial concerns of the client.
Consulting recommendations are not limited to any specific product or service offered
by a broker-dealer or insurance company. All recommendations are of a generic nature.