Customer Relationship Summary (Rev September 2023)
The Rice Partnership, LLC is an SEC-registered investment adviser that provides advisory services. Brokerage and investment advisory services and fees differ, and it is important for you to understand the differences. This document is a summary of the types of services we provide and how you pay for these services. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
What investment services and advice can you provide me?
We offer investment management services to retail investors which includes: investment and financial planning, ongoing portfolio monitoring, and capital needs analysis. We provide investment services in accordance with the investment objectives of each of our clients. Your portfolio is customized based on your investment objectives.
|Your account is reviewed by partners Bonnie Rice and Orest V. Saikevych no less than quarterly. More frequent reviews are triggered by changes in investment objectives, tax considerations, large deposits or withdrawals, large sales or purchases, or changes in economic climate.
|We typically manage advisory accounts on a discretionary basis. This means that we have the authority to execute transactions without the client’s approval, while keeping the client’s investment objectives in mind. Rice will, on occasion, take on a non-discretionary relationship. Non-discretionary authority requires us to obtain approval from you prior to making transactions in your account.
|Our investment management solutions focus on three strategies: Core U.S. Equity, Active Fixed Income Management, and International ETF Portfolio. Our core equity strategy is tax aware and based on fundamental analysis of companies with free cash flow, growing markets and what we view as strong balance sheets. This approach is intended to be long term with low turnover. Our fixed income strategy is aimed at finding high quality bonds on the most attractive part of the yield curve. For high net-worth clients in taxable accounts, Rice offers management of municipal bonds which are exempt from Federal and, in most cases, specific state taxes. We will also use fixed income mutual funds in this strategy. For our ETF portfolio, we utilize low cost exchange-traded funds to build inexpensive and liquid global portfolios. Lastly, we offer strategies through relationships with other managers, including: emerging markets, international small cap, commodities, real estate, emerging market debt, high yield debt, and alternative investments
|Rice does not currently have a minimum account requirement, but we may decline to manage smaller accounts.
For additional information, see Item 4 of our ADV Part 2A (Brochure) which can be accessed here.
Key questions to ask:
- Given my financial situation, should I choose an investment advisory service? Why or why not?
- How will you choose investments to recommend to me?
- What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?
What fees will I pay?
Rice charges an asset-based fee that varies by strategy. You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. Because we charge an asset-based fee, we have an incentive to encourage our retail investors to increase the assets in their account. For Equity and Balanced accounts less than $5,000,000 the fee is 1.00% annually and for assets in excess of $5,000,000 the fee is negotiable. For Fixed Income only accounts, we charge a 0.50% annual fee for assets under $5,000,000 and a negotiable fee for assets above $5,000,000. All assets in ETF accounts will be charged a 1.00% fee annually. Fees are paid quarterly in advance and is equal to the agreed upon rate per annum, times the market value of the account, divided by four. Fees are deducted from your account. We can provide an invoice which includes total fees deducted, the value of your assets, and assets on which the fees are calculated. All brokerage commissions, stock transfer fees, and other similar charges incurred in connection with transactions for your account will be paid out of the assets in the account, and are in addition to the investment management fees you pay to us. For additional information, please see Item 5 of our Form ADV Part 2A accessible here.
Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs? How much will be invested for me?
What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Below are some examples to help you understand what this means. Rice receives benefits, such as software, tools, training programs or seminar services from Charles Schwab & Co. (“Schwab”), a custodian and broker-dealer. Receipt of these benefits can create a conflict of interest by influencing our choice of custodian. Rice also receives client referrals from Schwab through our participation in Schwab Advisor Network. Rice is unaffiliated and independent from Schwab but pays fees to Schwab for client referrals through the service. Rice pays Schwab a fee to participate in this program for so long as the referred client’s account remains in custody at Schwab. Rice also pays a Non-Schwab Custody Fee for accounts not maintained at Schwab which is higher than the participation fee. Thus, Rice has an incentive to recommend client accounts be held in custody at Schwab. A detailed list of these programs is described in Item 12 of our Form ADV Part 2A and our conflicts are addressed in Item 10 of our Form ADV Part 2A, accessible here.
How might your conflicts of interest affect me and how will you address them?
How do your financial professionals make money?
Rice employees are compensated through management fees paid by advisory clients.
Do you or your financial professionals have legal or disciplinary history?
No. A free and simple search tool to research us and our financial professionals is available at investor.gov/CRS.
As a financial professional, do you have any disciplinary history? If so, for what type of conduct?
Additional information about our investment advisory services and an up-to-date copy of the relationship summary is available by contacting us at (808) 585-7788 or Bonnie Rice, the Chief Compliance Officer at email@example.com.
Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?
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