Phraction Management LLC

CRD#298633
Investment Advisor Firm

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Overview

Phraction Management LLC operates as an advisory company based in Stamford, Connecticut. Phraction Management LLC manages $225.1 million in total assets over 24 client accounts, making it a mid-tier financial advisory firm in the country by assets under management (AUM). The company has a small group of four employees, three of whom are financial advisors. Phraction Management LLC is not a registered broker-dealer, meaning the advisor cannot buy and sell securities for its own accounts as well as its clients' and instead must go through a broker-dealer firm to do so. Securities are tradable financial assets such as options, bonds and stocks.

Phraction Management LLC administers all of its accounts on a discretionary basis. Discretionary management means that buy and sell judgments for the client's account are made by a portfolio manager without requiring client permission. The firm's typical account size is $9.4 million. The average advisor at Phraction Management LLC manages around eight client accounts, placing it among the more personalized firms in the country.

The company's headquarters is located at 1 Landmark Square 8Th Floor, Stamford, Connecticut 6901. The firm is legally registered to provide services to investors throughout 2 states, including Connecticut and Florida.

Assets Under Management

$225.1 million

Number of Advisors

3

Disclosures

No

Office Location

1 Landmark Square 8Th Floor
Stamford, CT 06901

Phraction Management LLC by the Numbers

Total Assets Under Management

$225.1 million

National Average: $3.7 billion
Total Number of Employees

4

National Average: 29
Total Number of Accounts

24

National Average: 2,073
Average Account Size

$9.4 million

National Average: $1.8 million

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Products and Services

Phraction Management LLC provides a variety of financial services, including financial planning services, portfolio management for individuals and small businesses and selection of other advisers. In the prior financial year, the firm provided financial planning services to 1-10 of its clients. It does not sell products or offer services apart from investment advice to its investment advisory customers.

Core Advisor Services

  • Offered by 45% of firms

    Financial Planning Services

    This is the process of planning for your financial future, including for events such as retirement, your child's college education or estate succession.

  • Offered by 62% of firms

    Portfolio Management

    This is the selection and management of an investment mix and portfolio strategy for individuals and small businesses.

  • Find a firm that offers this service

    Market Timing Services

    This is the practice of attempting to make short-term profits on investments by buying low and selling high.

Other Services

  • Offered by 23% of firms

    Selection of Other Advisors

    This is the firm's assistance with choosing other advisors to work with who may have different specialties.

  • Find a firm that offers this service

    Publication of Periodicals

    This is the publication of various financial education materials.

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    Educational Seminars/Workshops

    This is the hosting of seminars or workshops to educate investors on financial concepts.

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Fee Structure

Fees charged by financial advisors largely depend on which services the firm provides the client. Fee types billed by Phraction Management LLC can consist of the following fee types: asset-based or fixed. The company does not supply a wrap fee program, in which the firm offers a bundle of services for a comprehensive fee.

Available

  • Offered by 74% of firms

    Percentage of Assets

    Show Explanation

    This fee, which is the most common fee type charged by advisors for portfolio management, is based on the amount of assets you have under management. Also referred to as an asset-based fee, this fee typically ranges from 0.50%-2.00% of AUM annually. You'll typically pay a lower rate the more assets you have under management.

  • Offered by 40% of firms

    Fixed

    Show Explanation

    Fixed fees are a one-time, lump sum charged for a specific service, like the creation of a financial plan without subsequent implementation. This can be useful if you only need advice for one specific purpose, rather than a long-term advisor. Fixed fees usually range from $1,000 to $3,000.

Unavailable

  • Find one of the 35% of firms that offer this fee type

    Hourly

    Show Explanation

    Like a lawyer, a financial advisor may charge you by the hour. This can be helpful if you are only looking for short-term or one-time advice. Rates typically range from $100-$300 per hour, depending on the complexity and level of services needed.

  • Find one of the 2% of firms that offer this fee type

    Commissions

    Show Explanation

    Occasionally, advisors earn commissions from selling financial products, such as securities or insurance policies, or making certain referrals or transactions. Advisors who earn commissions may be incentivized to make certain recommendations to clients in order to make a commission. Fee-only advisors do not earn commissions, while fee-based advisors may.

  • Find one of the 17% of firms that offer this fee type

    Performance-based

    Show Explanation

    Advisors only earn performance-based fees if a portfolio outperforms a defined benchmark. This fee may be calculated in a number of ways but most commonly is charged as a percentage of investment profits. Performance-based fees may incentivize advisors to make riskier decisions in order to generate higher returns.

  • Find one of the 1% of firms that offer this fee type

    Subscription

    Show Explanation

    Firms generally charge this fee for educational materials provided, such as a monthly magazine. This can be useful if you want to learn about investing or financial management on your own.

  • Find one of the 12% of firms that offer this fee type

    Other

    Show Explanation

    Firms can sometimes charge customers using non-traditional fee structures. See this firm's Form ADV for more details.

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Types of Clients

The company caters to high net worth investors and corporations. Out of its 24 clients, Phraction Management LLC's biggest client by number of accounts is high net worth investors, though it also serves 12 high-net-worth individuals. The SEC defines a high-net-worth individual as an individual who has at least $750,000 in AUM or a net worth of at least $1.50 million or who is considered a "qualified purchaser" (a standard met by having at least $5 million in investments). Around 50% of the company's clients are non-U.S. persons.

  • High-Net-Worth Individuals* - 52.17%
  • Other Individuals - 0%
  • Corporations - 47.83%
  • Charitable Organizations - 0%

* The U.S. Securities and Exchange Commission (SEC) defines a high-net-worth individual as someone who has at least $750,000 under management.

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Disclosures

Phraction Management LLC does not have any disclosures.

Please visit its Form ADV for more details.

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This content was compiled from the SEC and FINRA