BCG is a SEC-registered investment adviser (SEC file number 801-56943) with its
principal place of business located in Cherry Hill, New Jersey. We have been in business
since 1968. Horace Mann Educators Corp. is the direct owner of BCG Securities.
Michael Weckenbrock is CEO and Adam Paglione is President and Chief Compliance
Officer.
Assets under our firm’s management were approximately $516,270,263 as of December
31, 2022.
Portfolio Management Services
Our firm provides continuous advice to a client regarding the investment of client funds
based on the individual needs of the client. Through personal discussions in which goals
and objectives based on a client's particular circumstances are established, we develop
and manage a portfolio based on those discussions. During our data-gathering process,
we determine the client’s individual objectives, time horizons, risk tolerance, and liquidity
needs. We may also review and discuss a client’s prior investment history, as well as
family composition and background. We charge an asset based fee for the management
of these accounts, a portion of which is kept by the Investment Advisor Representative
and by the firm. Section 5 provides more information regarding the fee structure.
We will manage advisory accounts on a non-discretionary and discretionary basis.
Account supervision is guided by the stated objectives of the client (i.e. preservation,
conservative, moderate, moderately aggressive, or aggressive strategies), as well as tax
considerations. Clients may impose reasonable restrictions on investing in certain
securities, types of securities, or industry sectors.
Use of Sub-Advisers and Third-Party Managers
We may also, when appropriate, sub-advise certain portions of a client portfolio to
independent third-party managers or recommend direct investment with independent
third-party managers, typically when those managers demonstrate knowledge and
expertise is a particular investment strategy.
As part of this service, we perform management searches of various unaffiliated third-
party managers. Based on a client's individual circumstances and needs, we will
determine which selected manager’s portfolio management style is appropriate for that
client. Factors considered in making this determination include account size, risk
tolerance, the opinion of each client and the investment philosophy of the selected
manager. We encourage clients to review each third-party manager’s disclosure
document regarding the particular characteristics of any program and managers selected
by us.
Once we determine which selected third-party manager(s) are most appropriate for the
client, we will provide the selected registered investment adviser(s) with the client's
investment goals and risk tolerance. The selected manager(s) will then create and
manage the client's portfolio based upon the client's individual needs as exhibited in the
client's IPS or investment plan.
We will regularly and continuously monitor the performance of the selected third-party
manager(s). If we determine that a particular selected manager(s) are not providing
sufficient management services to the client, or are not managing the client's portfolio in
a manner consistent with the client's IPS or investment plan, we will remove the client's
assets from that selected manager(s) and place the client's assets with another third-
party manager(s) at our discretion and without prior consent from the client.
Our firm will conduct appropriate due diligence on all independent third-party managers,
making reasonable inquiries into their performance calculations, policies and procedures,
Code of Ethics, and other operational and compliance matters deemed important to
account performance and risk management.
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 futu
re cash flows, asset values and
withdrawal plans. The key defining aspect of financial planning is that through the financial
planning process, all questions, information and analysis will be considered as they
impact and are impacted by the entire financial and life situation of the client. Clients
purchasing this service will receive a written report, providing the client with a detailed
financial plan designed to achieve his or her stated financial goals and objectives.
In general, the financial plan will address any or all of the following areas of concern:
Personal: Family records, budgeting, personal liability, estate information and
financial goals;
Tax & Cash Flow: Income tax and spending analysis and planning for past, current
and future years. We will illustrate the impact of various investments on a client's
current income tax and future tax liability;
Death & Disability: Cash needs at death, income needs of surviving dependents,
estate planning and disability income analysis;
Retirement: Analysis of current strategies and investment plans to help the client
achieve his or her retirement goals;
Investments: Analysis of investment alternatives and their effect on a client's
portfolio;
Estate: Analysis of financial issues with respect to living trusts, wills,
estate tax,
powers of attorney, asset protection plans, nursing homes, Medicaid and elder law;
Insurance: Review of existing policies to ensure proper coverage for life, health,
disability, long-term care, liability, home and automobile; and/or
Business Planning: Employee benefits analysis, executive compensation planning,
risk management, real estate planning, business transfer planning, employee
recruiting needs, and expansion planning.
Typically, if requested, the financial plan will be 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 by the client.
Pension Consulting Services
We provide several consulting services separately or in combination. Clients may choose
to use any or all of these services.
Investment Policy Statement (“IPS”) Development or Review
We will meet with the client (in person and/or over the telephone) to determine or review
the client’s investment needs and goals. For clients needing an IPS, we will prepare a
written IPS stating their needs and goals and encompassing a policy under which these
goals are to be achieved. The IPS will also list the criteria for the selection of investment
vehicles and the procedures and timing interval for monitoring investment performance.
Selection of Investment Vehicles and Independent Money Managers
We will review various investments, consisting primarily of mutual funds, service providers
and strategies to determine which ones are appropriate to implement the client’s IPS.
The nature and selection of investments and service providers to be recommended will
be determined by the client, based on the IPS.
Based on a client’s individual circumstances and needs, we will determine which
independent manager’s portfolio is appropriate for that client. Factors we consider in
making this determination include account size, risk tolerance, the opinion of each client
and the investment philosophy of the independent adviser. If we believe that a selected
independent adviser is not performing adequately or if we believe that a different manager
is more suitable for a client’s particular needs, then we may suggest that a client contract
with a different adviser. While we may assist the client in selecting a new adviser, any
move to a new adviser is solely at the discretion of the client.
Monitoring of Investment Procedures and Performance
We will monitor client investments continuously based on the procedures and timing
intervals delineated in the IPS. Although we will not be involved in any way in the
purchase or sale of these investments, we will monitor the client's portfolio and will make
recommendations to the client as market factors and the client's needs dictate. The
frequency of reviews will be determined by the client’s needs and the IPS.
Employee Communications:
For pension, profit sharing and 401(k) plan clients in self-directed plans, we will provide
periodic educational support and investment workshops designed for the plan
participants. Topics to be discussed will be determined in conjunction with the plan
sponsor and in accordance with guidelines established in ERISA Section 404(c). The
educational support and investment workshops will not provide plan participants with
individualized, tailored investment advice or individualized, tailored asset allocation
recommendations.
Wealth Management/Consulting Services
We provide wealth management services for individuals and businesses. Wealth
management services are generally provided over the course of a year, and may be
continued from year to year by mutual agreement. Depending on each client's
circumstances and needs, our wealth management services may include: an evaluation
of the likelihood of the client meeting certain financial goals or objectives, based on the
client’s assets, liabilities, and relevant economic assumptions (a “Capital Needs
Analysis”); tax planning; insurance planning; estate planning; risk management needs
analysis; assessment of mortgages, debt refinancing, and loan alternatives; bill paying
and budgeting analysis; strategies for philanthropic and multigenerational planning;
gifting strategies, including amounts, form of gift (monetary or securities), and the
manner of making the gifts, such as through trusts and foundations; family business
succession planning; coordination of external advisors; and financial reporting.
Services in General
We tailor all of our investment recommendations and advice to the individual needs of
each client. All investment recommendations and advice are based on information
gathered through client questionnaires, electronic communications, telephone and in-
person discussions.
Our investment recommendations are not limited to any specific product or service offered
by a broker dealer or insurance company and will primarily include advice regarding no-
load or load-waived mutual funds, exchange-traded funds (ETFs), equity securities, and
independent third-party managers.
Occasionally, we may also advise on or recommend investments in the following
instruments:
Fixed income securities
Certificates of deposit
Warrants
Commercial paper
Municipal securities
Variable life insurance
Variable annuities
United States government securities
Interests in pooled investment vehicles