A. The Registrant is a corporation formed on January 27th 1999 in the state of New
York. The Registrant became an Investment Advisory Firm on June 18th 1999
originally registered with New York State. The Registrant first became registered
with the U.S. Securities and Exchange Commission in July of 2014. The act of
Registration does not imply a certain level of skill or training. The Registrant is
principally owned by David Bendix. David Bendix is the company’s president.
B. As discussed below, the Registrant offers to its clients (individuals, business
entities, trusts, estates and charitable organizations, pension and profit sharing
plans, etc.) discretionary investment advisory services and, to the extent
specifically requested by the client, retirement consulting services. Registrant
does not provide comprehensive financial planning or related consulting services.
To the extent specifically requested by a client, Registrant may provide limited
financial planning consulting services. Any such consultation services, to the
extent rendered, shall be rendered exclusively on an unsolicited basis, for which
Registrant may determine to charge a mutually agreed upon fixed or hourly
separate fee.
INVESTMENT ADVISORY SERVICES
The client can determine to engage the Registrant to provide discretionary
investment advisory services on a wrap or non-wrap fee basis. (See discussion
below). If a client determines to engage the Registrant on a wrap fee basis the
client will pay a single fee for bundled services (i.e. investment advisory,
brokerage, custody). The services included in a wrap fee agreement will depend
upon each client’s particular need. If the client determines to engage the
Registrant on a non-wrap fee basis the client will select individual services on an
unbundled basis, paying for each service separately (i.e. investment advisory,
brokerage, custody).
The Registrant provides investment advisory services specific to the needs of each
client. To commence the investment advisory process, Registrant will ascertain
each client’s investment objective(s) and then allocate the client’s assets
consistent with the client’s designated investment objective(s). Once allocated,
Registrant provides ongoing supervision of the account(s). Before engaging
Registrant to provide investment advisory services, clients are required to enter
into an Investment Advisory 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 fee that is due from the client.
Part 2A The Bendix Financial Group, Inc. – March, 2024 5
NON-WRAP FEE BASIS
The client can determine to engage the Registrant to provide discretionary
investment advisory services on a fee basis. The Registrant’s annual investment
advisory fee shall be based upon a percentage (%) of the market value and type of
assets placed under the Registrant’s management (between 2.50% and negotiable)
to be charged quarterly in advance, as follows:
Assets Under Management Maximum Annual Fee
$0 - $249,999 2.50%
$250,000 - $499,999 2.25%
$500,000 - $749,999 2.00%
$750,001 - $1,246,999 1.75%
$1,250,000 - $1,999,999 1.50%
$2,000,001 - $4,999,999 1.25%
$5,000,001 - $24,999,999 1.25%
over $25,000,000 1.00%
FINANCIAL PLANNING AND CONSULTING SERVICES (STAND-ALONE)
To the extent specifically requested by the 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 $500 to $5,000 on a fixed fee basis, and $250 to $500 hourly
rate basis. Prior to engaging the Registrant to provide financial planning services, the
client will be required to enter into a Financial Planning and Consulting Agreement with
Registrant setting forth the terms and conditions of the engagement, and describing the
scope of the services to be provided. If requested by the client, Registrant may
recommend the services of other professionals for implementation purposes, including
the Registrant’s Principal and representatives in their individual capacities as a registered
broker-dealers and insurance agents. (See disclosure at Item 10 C.1 and 10 C.8). 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. Please Also Note: It remains the client’s responsibility
to promptly notify the Registrant 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.
VISION2020 WEALTH MANAGEMENT ADVISOR PROGRAM
We offer the VISION2020 Wealth Management Advisor Program (“WMP”)
which provides comprehensive investment management of your assets through the
Part 2A The Bendix Financial Group, Inc. – March, 2024 6
application of asset allocation planning software as well as the provision of execution,
clearing and custodial services through Pershing.
WMP provides risk tolerance assessment, efficient frontier plotting, fund profiling
and performance data, and portfolio optimization and re-balancing tools. Utilizing these
tools, and based on your responses to a risk tolerance questionnaire (“Questionnaire”)
and/or discussions that we have together regarding among other things, investment
objective, risk tolerance, investment time horizon, account restrictions, and overall
financial situation, we construct a portfolio of investments for you. This portfolio may
consist of mutual funds, exchange traded funds, equities, options, debt securities, variable
life, and/or variable annuity sub-accounts (certain restrictions may apply) or other
investments.
Each portfolio is designed to meet your individual needs, stated goals and
objectives. Additionally, you have the opportunity to place reasonable restrictions on the
types of investments to be held in the portfolio.
For further WMP details, please see the WMP Wrap Fee Program Brochure. We
provide this brochure to you prior to or concurrent with your enrollment in WMP.
Please read it thoroughly before investing.
VISION2020 WEALTH MANAGEMENT PLATFORM – MODEL PORTFOLIOS
PROGRAM
The Wealth Management Platform - Model Portfolios Program (“Model
Program”) offers Clients managed asset allocation models (“Asset Allocation Models”)
of mutual funds or exchange traded funds (“ETFs”) diversified across various investment
styles and strategies. The Asset Allocation Models are constructed by managers
(“Program Managers”) such as Blackrock, Goldman Sachs, Fidelity, Russell, Vanguard,
Landenburg, First Trust.
Based upon the risk tolerance of each Client, the Model Program utilizes a system
that selects a specific Asset Allocation Model which may contain either 1) a combination
of mutual funds or 2) a combination of exchange traded funds (“ETFs”) depending on
which Program Manager is used. Together, we will select a recommended Asset
Allocation Model. After the Asset Allocation Model is chosen, we, with the assistance of
the Model Program sponsor, will open a Model Program account. Your assets will be
invested in the specific investments contained within the recommended Asset Allocation
Model. You have the opportunity to place reasonable restrictions on investments held
within the Model Program account.
For further Model Program details, including a full list of Program Managers,
please see the Model Program Wrap Fee Program Brochure. We provide this
brochure to you prior to or concurrent with your enrollment in the Model Program.
Please read it thoroughly before investing.
Part 2A The Bendix Financial Group, Inc. – March, 2024 7
VISION2020 WEALTH MANAGEMENT PLATFORM – SMA AND UMA
PROGRAM
The Wealth Management Platform – SMA and UMA Account Program (“Wealth
Management Account Program” or “WMAP”) provides you with the opportunity to
invest your assets across multiple investment strategies and asset classes by
implementing an asset allocation strategy. WMAP is a Wrap Account program that
offers these advisory services along with brokerage and custodial services for a single,
annual, asset-based advisory fee.
We will present you with a WMAP asset allocation model (“WMAP Model”) for
your approval which will consist of: 1) third party money managers (“WMAP
Managers”) who will manage your WMAP account according to a particular equity or
fixed income model or strategy, or 2) no-load mutual funds (“Funds”), or 3) exchange
traded funds (“ETFs”) or any combination thereof (individually or collectively, “WMAP
Investments”). WMAP Investments will be managed according to the selected WMAP
Model. WMAP Investments are held within a separately managed account or a series of
separately managed accounts (collectively, “SMA Account”) or in one, unified managed
account (“UMA Account”).
We will suggest a WMAP Model to you based on your responses to a risk tolerance
questionnaire (“Questionnaire”) and discussion that we have together regarding among
other things, investment objective, risk tolerance, investment time horizon, account
restrictions, and overall financial situation. In addition, you have the opportunity to place
reasonable restrictions on investments held within your WMAP account.
For further WMAP details, please see the WMAP Wrap Fee Program Brochure.
We provide this brochure to you prior to or concurrent with your enrollment in
WMAP. Please read it thoroughly before investing.
MANAGED ASSETS PROGRAM
The Managed Assets Program (“MAP Program”) is an investment management
program that provides you with access to multiple managers who provide investment
advice to you on portfolios consisting of individual stocks, bonds, exchange traded and
mutual funds.
You can choose a variety of investment managers across asset classes and
investment styles for a complete asset allocation strategy or seek an investment manager
for a single asset class. More specifically, you will generally choose from the following
three options:
Part 2A The Bendix Financial Group, Inc. – March, 2024 8
- The Single Asset Category Proposal allows you to select investments in a
single asset class either by asset class (e.g. US Large Cap Equity) or by
investment style (e.g. US Large Cap Growth Equity).
- The Asset Allocation Proposal which allows you to allocate your
investments across multiple asset classes and investment styles using
multiple brokerage accounts.
- The Diversified Multi-Strategy Portfolio Proposal which allows you to
allocate your investments across multiple asset classes and investment styles
using a single brokerage account.
In addition, you have the opportunity to place reasonable restrictions on investments held
within your MAP Program account.
For further MAP Program details, please see the MAP Program Wrap Fee
Brochure. We provide this brochure to you prior to or concurrent with your
enrollment in WMAP. Please read it thoroughly before investing.
THIRD PARTY ADVISORY SERVICES
We offer our clients the services of various third party investment advisors
(“Third-Party Advisory Services”) for the provision of certain investment advisory
programs including mutual fund wrap and separately managed account programs.
If you are interested in learning more about any of these services, please note that
a complete description of the programs, services, fees and payment structure, and
termination features is available via the applicable Third Party Advisory Service’s
disclosure brochures, investment advisory contracts, and account opening documents.
In connection with these arrangements, we will provide assistance in the selection
and ongoing monitoring
of a particular Third-Party Advisory Service. Factors that we
consider in the selection of a particular third-party advisor may include but may not be
limited to: i) our assessment of a particular Third-Party Advisory Service; ii) your risk
tolerance, goals, objectives and restrictions, as well as investment experience; and, iii) the
assets you have available for investment.
You should know that the services provided by us through the use of Third-Party
Advisory Services are under certain conditions directly offered by them to you. The fees
charged by Third-Party Advisory Services who offer their programs directly to you may
be more or less than the combined fees charged by the Third Party Advisory Service and
us for our participation in the investment programs. However, when using the services of
Third-Party Advisory Services directly, you do not receive our expertise in developing an
investment strategy, selecting a Third-Party Advisory Service, monitoring the
Part 2A The Bendix Financial Group, Inc. – March, 2024 9
performance of your account and changing a Third-Party Advisory Service provider
when appropriate.
MISCELLANEOUS
Limitations of Financial Planning and Non-Investment Consulting Services. As
indicated above, to the extent requested by the client, Registrant may, in limited
circumstances, provide financial planning and related consulting services regarding non-
investment related matters, such as estate planning, insurance, etc. Please Note: We do
not serve as an attorney, and no portion of our services should be construed as same.
Accordingly, we do not prepare estate planning documents. To the extent requested by a
client, we may recommend the services of other professionals for certain non-investment
implementation purpose (i.e. attorneys, accountants, insurance, etc.), including IARs of
Registrant in their separate individual capacities as registered representatives of Osaic
Wealth, Inc (“Osaic”) and / or as licensed insurance agents. 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 Registrant and/or its representatives (see Item 10. C.
below). Please Note: If the client engages any recommended unaffiliated 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 the
Registrant, shall be responsible for the quality and competency of the services provided.
Please Also Note-Conflict of Interest: The recommendation by a Registrant
representative that a client purchase a securities or insurance commission product from
once of Registrant’s representatives in his/her individual capacity as a representative of
Osaic and/or as an insurance agent, presents a conflict of interest, as the receipt of
commissions may provide an incentive to recommend products based on commissions to
be received, rather than on a particular client’s need. No client is under any obligation to
purchase any securities or insurance commission products from any of Registrant’s
representatives. Clients are reminded that they may purchase securities and insurance
products recommended by Registrant through other, non-affiliated broker-dealers and/or
insurance agents. ANY QUESTIONS: Registrant’s Chief Compliance Officer, Daniel
Eccleston, remains available to address any questions that a client or prospective
client may have regarding the above conflicts of interest.
Retirement Rollovers-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 the Registrant recommends that a client roll over their
Part 2A The Bendix Financial Group, Inc. – March, 2024 10
retirement plan assets into an account to be managed by the Registrant, such a
recommendation creates a conflict of interest if the Registrant will earn new (or increase
its current) compensation as a result of the rollover. Whether Registrant provides a
recommendation as to whether a client should engage in a rollover or not, 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 rollover retirement plan
assets to an account managed by Registrant. Registrant’s Chief Compliance Officer,
Daniel Eccleston, remains available to address any questions that a client or
prospective client may have regarding the conflict of interest presented by such
rollover recommendation.
Fiduciary Status: Per the DOL: “When we provide investment advice to you regarding
your retirement plan account or individual retirement account, we are fiduciaries 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. The
way we make money creates some conflicts with your interests, so we operate under a
special rule that requires us to act in your best interest and not put our interest ahead of
yours.” Accordingly, relative to retirement accounts, “we must:
· Meet a professional standard of care when making investment
recommendations (give prudent advice);
· Never put our financial interests ahead of yours when making
recommendations (give loyal advice);
· Avoid misleading statements about conflicts of interest, fees, and
investments;
· Follow policies and procedures designed to ensure that we give
advice that is in your best interest;
· Charge no more than is reasonable for our services; and
· Give you basic information about conflicts of interest.”
Availability and 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 below, 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).
Portfolio Activity. Registrant has a fiduciary duty to provide services consistent with the
client’s best interest. As part of its investment advisory services, 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, 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 neither necessary nor
prudent. Of course, as indicated below, there can be no assurance that investment
Part 2A The Bendix Financial Group, Inc. – March, 2024 11
decisions made by Registrant will be profitable or equal any specific performance
level(s). Clients nonetheless remain subject to the fees described in Item 5 below during
periods of account 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).
Cash Positions. Registrant continues to treat cash as an asset class. As such, unless
determined to the contrary by Registrant, all cash positions (money markets, etc.) shall
continue to be included as part of assets under management for purposes of calculating
Registrant’s 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), 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: The Registrant’s Chief Compliance Officer, Daniel Eccleston,
remains available to address any questions that a client or prospective may have
regarding the above fee billing practice.
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.
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 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.
Disclosure Statement. A copy of the Registrant’s written Brochure as set forth on ADV
Part 2A and ADV Part 2B, and form CRS (Client Relationship Summary) shall be
Part 2A The Bendix Financial Group, Inc. – March, 2024 12
provided to each client prior to, or contemporaneously with, the execution of the
Investment Advisory Agreement and/or Financial Planning and Consulting Agreement.
C. The Registrant shall provide investment advisory services specific to needs of
each client. Prior to providing investment advisory services, an investment adviser
representative will discuss with each client, their particular investment
objective(s). The Registrant shall allocate each client’s investment assets
consistent with their designated investment objective(s). Clients may, at anytime,
impose restrictions, in writing, on the Registrant’s services.
D. There is no significant difference between how the Registrant manages wrap fee
accounts and non-wrap fee accounts. However, as stated above, if a client
determines to engage the Registrant on a wrap fee basis the client will pay a
single fee for bundled services (i.e. investment advisory, brokerage, custody) (See
client’s particular need. If the client determines to engage the Registrant on a non-
wrap fee basis, the client will select individual services on an unbundled basis,
paying for each service separately (i.e. investment advisory, brokerage, custody).
Please Note: When managing a client’s account on a wrap fee basis, the
Registrant shall receive payment for its investment advisory services from Osaic
in accordance with the Wrap Fee Brochure. The balance of the wrap fee shall be
returned by Osaic as the sponsor to cover all other costs and fees discussed in the
Wrap Fee Brochure.
E. As of December 31st, 2023, the Registrant had $143,735,154 in assets under
management on a discretionary basis.