RoseCap Investment Advisors is a fee-only, independent, investment advisory firm. We provide portfolio management, financial planning, and retirement plan services to both institutions and individuals & families. While investment returns can never be guaranteed, RoseCap does guarantee that we will work with honesty and integrity to provide unprecedented client service and to do what is best for the client.
RoseCap was founded in 2010 by Matthew Rosenberg. With a passion for investments and financial analysis, Mr. Rosenberg decided to leave the world of buy-side finance and pursue a career in investment advisory. In 2010 he interviewed with multiple advisory firms including several of the large banks and financial institutions that have strong brand recognition. However he could not get settled on the business models of these firms which emphasized asset gathering over client service, selling high fee/commission products (i.e. life insurance, annuities, and high expense ratio mutual funds), and not putting the best interest of the client first.
I knew my very first client would be my father who had recently retired. My second client was a very close friend. This is typical for a person starting in the financial services industry - the majority of their early clients are friends and family. I simply could not imagine investing the money of those closest to me in insurance products or securities that paid the highest commissions to the bank and/or myself. An investment advisor should not feel pressured, or be incentivized, to oversell anyone let alone family and friends. A fiduciary service - treating my clients’ money as if it were my own - is the type of service I want to provide.
Matt soon learned of a relatively new model of investor advisor in financial services knows as the “Independent Fee-Only Advisor”. These advisors provide investment advice to clients and are paid a flat-fee rate for their work, regardless of the advice provided. Further, fee-only advisors do not receive commissions or kickbacks from the fund companies for placing client assets in funds. This was the business model he wanted but independent advisors were few and far between. That's when he decided to form his own - RoseCap Investment Advisors.
A Better Business Model
RoseCap chose to be an independent, fee-only, investment advisor because we believe this provides the best level of service for our clients. As an independent advisor, RoseCap is free from the influence of large institutions. Also, as a Registered Investment Advisor under the Investment Advisers Act of 1940 we are obligated to act as a fiduciary on behalf of our clients. Fiduciary duty is not only something that RoseCap accepts, but it is something we welcome. In addition to providing objective investment advice to our clients, we avoid selling high commission products such as life insurance and annuities to clients. Taking the role of a trusted advisor rather than a salesman is something that is very important to RoseCap, and should be very important to clients as well.
I believe that any industry in which a client in a position of informational disadvantage seeks the advice of a professional, the professional should not receive compensation based up on the advice provided to the client. It’s a shame this business model is still present in the financial services industry. The fee-only advisor with fiduciary duty is a big-step in the direction of better customer service.
In addition to aligning our incentives with the best interest of the client, RoseCap has taken steps to distinguish itself from other financial services firms. We perform our own research and typically use Exchange Traded Funds (ETFs) to provide asset class exposure to clients. In this fashion, we are not a “manager of managers” and the clients will save significantly on fees as well.
High Ethical and Professional Standards
RoseCap has adopted a set of codes, standards, and guidelines that we believe are among the highest in the investment industry. These include the CFA Institute’s Code of Ethics and Standards of Professional Conduct, the Asset Manager Code of Professional Conduct, and the Global Investment Performance Standards.
Code of Ethics and Standards of Professional Conduct (“Code and Standards”)
As mentioned on the CFA Institute website, the Code and Standards are the ethical benchmark for investment professionals around the globe, regardless of job title, cultural differences, or local laws. As CFA Institute members and charterholders, the RoseCap team is required to follow the Code and Standards. Among other things, the Code of Ethics maintain that RoseCap must place the integrity of the profession and the interest of clients above its own interest, act with integrity, competence, and respect, and maintain and develop our professional competence. For the complete Code and Standards click here.
Global Investment Performance Standards (“GIPS”)
GIPS are a rigorous set of investment performance measurement standards adopted in 37 countries and recognized around the world for their unparalleled credibility, integrity, scope, and uniformity, enabling investors to directly compare a firm’s track record with other firms. RoseCap is [in-process for claiming GIPS compliance].
Asset Manager Code of Conduct (“Code”)
The Code outlines the ethical and professional responsibilities of the firms that manage assets on behalf of clients. It provides standards and supportive guidance based on general principals of conduct. It states that managers have the following responsibilities to their clients:
- To act in a professional and ethical manner at all time.
- To act for the benefit of clients.
- To act with independence and objectivity.
- To act with skill, competence, and diligence.
- To communicate with clients in a timely and accurate manner.
- To uphold the rules governing capital markets.
Third Party Custodian
Client assets are held by a third-party custodian which allows clients the safety of a large bank as well as the ability to access their funds 24-hours a day, 7 days a week. This also serves as an important safety measure for clients, as RoseCap never takes possession of client assets. This service is provided to RoseCap clients without additional charge.