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Dominion Portfolio Management Inc. - Customer Relationship Summary

Dominion Portfolio Management Inc. - Customer Relationship Summary

Dominion Portfolio Management, Inc. (“DPM”). DPM is an investment adviser registered with the SEC pursuant to the Investment Advisers Act of 1940.

 

WHAT INVESTMENT SERVICES AND ADVISE CAN DPM PROVIDE ME?

DPM’s financial professionals are also licensed with Dominion Investor Services, Inc. (“DOMI”) a Broker/Dealer. Please refer to that Customer Relationship Summary in addition to this one. If you choose to hire DPM, your financial professional will establish for you one or more accounts.

 

Investment Advisory Services: If you hire DPM to provide investment advisory services, DPM offers the following: 

  • When you choose a brokerage platform for your advisory account, services will be provided through DOMI and its clearing firm, Hilltop Securities (“HTS”). HTS provides execution, clearing, and custody services of your account.

  • When you choose a mutual fund company platform, the services will be provided by the fund family and your investment options will be limited to that fund family’s offerings.

  • Your financial professional will monitor the securities held in your account at least one time per year.

 DPM and your financial professional act as fiduciaries when they provide investment advisory services and receive compensation as later described in this summary.

 

Based upon information you provide DPM, your financial professional will make investments based upon your stated goals and objectives. Whether DPM provides investment advice or exercises investment discretion will depend on which service you select. If DPM provides non-discretionary investment advice, you will be responsible for making the final decision on how your account should be invested. When DPM invests the assets in your account on a discretionary basis, your financial professional will make investments on your behalf. When you choose non-discretionary services you will be consulted regarding each investment decision. You may choose to change the type of service you are using at any time. The terms of each service may require that you have a minimum amount of assets in your account. We will not be able to recommend certain services if you do not meet these account minimums. Additionally, we will only recommend services that are suitable based upon the information you have provided.

 

Your account may be invested in a variety of securities including stocks, bonds, mutual funds, exchange-traded funds and other publicly-traded securities. You are not able to invest in every fund available in the marketplace. However, DPM has several hundred mutual funds and exchange traded funds available under the Programs in which you may invest when you are using a brokerage format.

 

QUESTIONS YOU MAY WANT TO ASK OUR FIRM’S FINANCIAL PROFESSIONAL:

  • Given my financial situation, should I choose an investment advisory service? Should I choose a brokerage service? Should I choose both types of services? Why or why not?

  • How will you choose investments for me?

  • What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?

  • If you choose a mutual fund custodian platform will you be subject to their policies, procedures and fees?

 

WHAT FEES WILL I PAY? 

Investment advisory services are illustrated in the following table. Each of these fees is more fully described below.


Types of Fees

Advisory Services

Ticket Charges

Yes, fully disclosed in contract

Mutual Fund Loads and Contingent Deferred Sales Charges

No

Mutual Fund 12b-1 Fees

No or will be used to offset advisory fee

Mutual Fund Shareholder Fees & Sub-transfer Agent Fees

Yes

Fee for services

Yes

 

Commission/Ticket Charges: Your financial professional receives no ticket charge based compensation. HTS will charge fees for a number of services it provides that are apart from the brokerage and advisory services we describe above. For example, they charge fees for maintenance of certain accounts, like individual retirement accounts, and to process certain kinds of transactions, like account withdrawals and transfers. Your financial professional receives no compensation for these fees.

 

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.

 

Third-Party Money Managers

DPM has existing customer accounts held at third-party money managers. Third-party managers charge the customer account with their management fee and the manager pays a portion of that fee to DPM. Effective March 2020, DPM no longer refers new customer accounts to third-party managers.

 

A QUESTION YOU MAY WANT TO ASK DPM’S FINANCIAL PROFESSIONAL: 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, and how much will be invested for me?

 

WHAT ARE DPM’S LEGAL OBLIGATIONS TO ME WHEN PROVIDING RECOMMENDATIONS AS MY INVESTMENT ADVISER? HOW ELSE DOES YOUR FIRM MAKE MONEY AND WHAT CONFLICTS OF INTEREST DO YOU HAVE?

When we provide you with a recommendation 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 potential conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations and investment advice we provide you.

Following are examples to help you understand what this means. A DPM financial professional may have an incentive to recommend that you select advisory services over brokerage services if he or she believes the fee will generate more compensation. Your financial professional also has an incentive to encourage you to move your account from another firm to DPM or from your retirement plan to DPM in order to increase his or her own compensation. A financial professional’s recommendations, investment advice, or discretionary investment decisions may also benefit DPM or DOMI.

 

A QUESTION YOU MAY WANT TO ASK DPM’S FINANCIAL PROFESSIONAL: How might your conflicts of interest affect me, and how will you address them?

 

HOW DO YOUR FINANCIAL PROFESSIONALS MAKE MONEY?

Your financial professional receives a percentage of the fee revenue he or she generates for DPM. Fee revenue includes when he or she provides advisory services. The percentage of revenue paid to your financial professional may increase if he or she hits certain revenue thresholds.

 

DO YOU OR YOUR FINANCIAL PROFESSIONALS HAVE LEGAL OR DISCIPLINARY HISTORY?

Yes, some of our financial professionals have disciplinary history. You should go to https://www.investor.gov/CRS for a free and simple search tool to research DPM and your financial professional.

 

A QUESTION YOU MAY WANT TO ASK DPM’S FINANCIAL PROFESSIONAL: As a financial professional, do you have any disciplinary history? For what type of conduct?

 

ADDITIONAL INFORMATION

You can find additional information about the services we provide, fees you pay and conflicts of interest in DPM’s Form ADV Part 2A. Your financial professional will provide you a copy. You may also request up-to-date information and a copy of this Relationship Summary directly from DPM by calling us at 210-265-8050 or 800- 929-5667.

 

A QUESTION YOU MAY WANT TO ASK DPM’S FINANCIAL PROFESSIONAL: Who is my primary contact person I can talk to if I have concerns about how my financial professional is treating me?