Registered Investment Companies. Confluence sub-advises a closed-end fund, First Trust Specialty Finance and Financial Opportunities Fund (NYSE: FGB), and an open-end mutual fund, First Trust/Confluence Small Cap Value Fund (FOVIX, FOVAX, FOVCX, FOVRX). Confluence has sub-adviser agreements with First Trust Advisors L.P., the investment adviser to both funds, with fees to be paid to Confluence based on a percentage of assets under management in the respective funds. Confluence provides non-discretionary investment advisory services to certain Financial Institutions. Such non-discretionary advice typically takes the form of model portfolios, which represent Confluence recommendations as to the composition of a portfolio of securities that would be reasonably appropriate to meet a stated investment objective, based on criteria provided by the client to their Financial Institution. Confluence’s role is solely to provide to these Financial Institutions recommendations as to the securities composing the portfolio and advice on changes to the portfolio. The Financial Institution will utilize Confluence recommendations in managing the accounts of the clients of the Financial Institution. The Financial Institutions retain full discretion to accept, modify or reject our recommendations and retain trading authority over their clients’ accounts. The non-discretionary accounts at the Financial Institutions for their clients may be Wrap Accounts, UMAs or other types of accounts. These clients are clients of the respective Financial Institution and are not Confluence clients. The model portfolios that Confluence develops as part of the non-discretionary investment advisory services are similar to the portfolios in the SMAs with the same investment strategy that Confluence manages as part of the discretionary portfolio management and investment advisory services described above. Although Confluence discretionary SMAs and non-discretionary model portfolios utilizing the same investment strategy will likely perform similarly, performance differences are expected to occur between them because Confluence does not have trading discretion over the model portfolios. For example, in an effort to accommodate Financial Institution clients to which we provide model portfolios, and to minimize trades, the target investment percentages for each security holding in the portfolio may differ slightly between the model portfolio and the comparable SMA. In addition, Financial Institutions utilizing the Confluence model portfolio recommendations retain full discretion to modify or reject recommendations, and the portfolio of securities (or the respective weighting of securities in the portfolio) in the accounts of the clients of such Financial Institutions may differ from the portfolios in comparable SMAs for which we have discretionary authority. Clients should speak to their Financial Advisor about the similarities and differences associated with discretionary SMAs and non-discretionary model account programs.
Appears in 2 contracts
Samples: Investment Advisory Agreement, Investment Advisory Agreement
Registered Investment Companies. Confluence sub-advises a closed-end fund, First Trust Specialty Finance and Financial Opportunities Fund (NYSE: FGB), and an open-end mutual fund, First Trust/Confluence Small Cap Value Fund (FOVIX, FOVAX, FOVAX and FOVCX, FOVRX). Confluence has sub-adviser agreements with First Trust Advisors L.P., the investment adviser to both funds, with fees to be paid to Confluence based on a percentage of assets under management in the respective funds. In October 2023, the board of trustees of FGB announced its agreement to a proposal to reorganize FGB with and into abrdn Total Dynamic Dividend Fund (NYSE: AOD) and the board has asked the shareholders of FGB to approve such reorganization. In the event of the consummation of such reorganization as proposed, First Trust Advisors L.P. would no longer be the investment adviser to FGB and Confluence would no longer serve as sub-adviser to FGB. Confluence does not believe that such event would have a material effect on its business. Confluence provides non-discretionary investment advisory services to certain Financial Institutions. Such non-discretionary advice typically takes the form of model portfolios, which represent Confluence recommendations as to the composition of a portfolio of securities that would be reasonably appropriate to meet a stated investment objective, based on criteria provided by the client to their Financial Institution. Confluence’s role is solely to provide to these Financial Institutions recommendations as to the securities composing the portfolio and advice on changes to the portfolio. The Financial Institution will utilize Confluence recommendations in managing the accounts of the clients of the Financial Institution. The Financial Institutions retain full discretion to accept, modify modify, or reject our recommendations and retain trading authority over their clients’ accounts. The non-discretionary accounts at the Financial Institutions for their clients may be include Wrap Accounts, UMAs or other types of accounts. These clients are clients of the respective Financial Institution and are not Confluence clients. The model portfolios that Confluence develops as part of the non-discretionary investment advisory services are similar to the portfolios in the SMAs with the same investment strategy that Confluence manages as part of the discretionary portfolio management and investment advisory services described above. Although Confluence discretionary SMAs and non-discretionary model portfolios utilizing the same investment strategy will likely perform similarly, performance differences are expected to occur between them because Confluence does not have trading discretion over the model portfolios. For example, in an effort to accommodate Financial Institution clients to which we provide model portfolios, and to minimize trades, the target investment percentages for each security holding in the portfolio may can differ slightly between the model portfolio and the comparable SMA. In addition, Financial Institutions utilizing the Confluence model portfolio recommendations retain full discretion to modify or reject recommendations, and the portfolio of securities (or the respective weighting of securities in the portfolio) in the accounts of the clients of such Financial Institutions may can differ from the portfolios in comparable SMAs for which we have discretionary authority. Clients should speak to their Financial Advisor about the similarities and differences associated with discretionary SMAs and non-discretionary model account programs. Confluence provides non-discretionary model portfolios to asset allocation strategy programs sponsored by Financial Institutions as part of their UMA platform. Under these programs, Confluence provides non-discretionary recommendations to assist in the development of a portfolio of investments in exchange-traded funds that the respective sponsor determines to be suitable for its clients using the program. Confluence provides non-discretionary investment advisory services to certain Financial Institutions in connection with the formation of unit investment trusts (“UITs”). A UIT is a registered investment company that buys and holds a generally fixed portfolio of equities, bonds, or other securities or assets. Units in the UIT are sold by such Financial Institutions to clients. Confluence provides non-discretionary services to such Financial Institutions in connection with the construction and monitoring of the UIT’s portfolio.
Appears in 1 contract
Samples: Investment Advisory Agreement
Registered Investment Companies. Confluence sub-advises a closed-end fund, First Trust Specialty Finance and Financial Opportunities Fund (NYSE: FGB), and an open-end mutual fund, First Trust/Confluence Small Cap Value Fund (FOVIX, FOVAX, FOVAX and FOVCX, FOVRX). Confluence has sub-adviser agreements with First Trust Advisors L.P., the investment adviser to both funds, with fees to be paid to Confluence based on a percentage of assets under management in the respective funds. Confluence provides non-discretionary investment advisory services to certain Financial Institutions. Such non-discretionary advice typically takes the form of model portfolios, which represent Confluence recommendations as to the composition of a portfolio of securities that would be reasonably appropriate to meet a stated investment objective, based on criteria provided by the client to their Financial Institution. Confluence’s role is solely to provide to these Financial Institutions recommendations as to the securities composing the portfolio and advice on changes to the portfolio. The Financial Institution will utilize Confluence recommendations in managing the accounts of the clients of the Financial Institution. The Financial Institutions retain full discretion to accept, modify or reject our recommendations and retain trading authority over their clients’ accounts. The non-discretionary accounts at the Financial Institutions for their clients may be include Wrap Accounts, UMAs or other types of accounts. These clients are clients of the respective Financial Institution and are not Confluence clients. The model portfolios that Confluence develops as part of the non-discretionary investment advisory services are similar to the portfolios in the SMAs with the same investment strategy that Confluence manages as part of the discretionary portfolio management and investment advisory services described above. Although Confluence discretionary SMAs and non-discretionary model portfolios utilizing the same investment strategy will likely perform similarly, performance differences are expected to occur between them because Confluence does not have trading discretion over the model portfolios. For example, in an effort to accommodate Financial Institution clients to which we provide model portfolios, and to minimize trades, the target investment percentages for each security holding in the portfolio may can differ slightly between the model portfolio and the comparable SMA. In addition, Financial Institutions utilizing the Confluence model portfolio recommendations retain full discretion to modify or reject recommendations, and the portfolio of securities (or the respective weighting of securities in the portfolio) in the accounts of the clients of such Financial Institutions may can differ from the portfolios in comparable SMAs for which we have discretionary authority. Clients should speak to their Financial Advisor about the similarities and differences associated with discretionary SMAs and non-discretionary model account programs. Confluence provides non-discretionary model portfolios to asset allocation strategy programs sponsored by Financial Institutions as part of their UMA platform. Under these programs, Confluence provides non-discretionary recommendations to assist in the development of a portfolio of investments in exchange-traded funds that the respective sponsor determines to be suitable for its clients using the program. Confluence provides non-discretionary investment advisory services to certain Financial Institutions in connection with the formation of unit investment trusts (“UITs”). A UIT is a registered investment company that buys and holds a generally fixed portfolio of equities, bonds, or other securities or assets. Units in the UIT are sold by such Financial Institutions to clients. Confluence provides non-discretionary services to such Financial Institutions in connection with the construction and monitoring of the UIT’s portfolio.
Appears in 1 contract
Samples: Investment Advisory Agreement