Item 1 – Introduction
Radnor Financial Advisors, LLC (“we”, “us” or “our”) is registered with the U.S. Securities and Exchange Commission (“SEC”) as an investment adviser. Investment advisory services and compensation structures differ from that of a registered broker-dealer, and it is important that you understand the differences.
Free and simple tools are available to research firms and financial professionals at www.Investor.gov/CRS. The site also provides educational materials about broker-dealers, investment advisers and investing.
Item 2 – Relationships and Services
We provide discretionary investment management, financial planning and tax preparation services to individuals, trusts and estates (our “retail investors”) on a fee-only basis.
When a retail investor engages us to provide investment management services we shall monitor, on a continuous basis, the investments in the accounts over which we have authority as part of our investment management service. Furthermore, when engaged on a discretionary basis, we shall have the authority, without prior consultation with you (unless you impose restrictions on our discretionary authority), to buy, sell, trade and allocate the investments within your account(s) consistent with your investment objectives. Our authority over your account(s) shall continue until our engagement is terminated.
Our standard investment management engagement includes financial planning services. Clients who have not engaged us to provide investment management services may engage us to provide financial planning services on a separate fee basis. When we provide financial planning services, we rely upon the information provided by the client for our financial analysis and do not verify any such information while providing this service.
We do not limit the scope of our investment advisor services to proprietary products or a limited group or type of investment. However, if requested, Registrant may include socially responsible investments that reflect environmental, social and governance (“ESG”) issues in your portfolio.
Additional Information: For more detailed information about our Advisory Business and the Types of Clients we generally service, please See Items 4 and 7, respectively in our ADV Part 2A.
Item 3 – Fees, Costs, Conflicts, and Standard of Conduct
When engaged to provide investment management services, we shall charge a fee calculated as a percentage of your assets under our management (our “AUM Fee”). Our annual AUM Fee is negotiable but generally does not exceed 1.00%. However, we generally impose an annual minimum fee of $10,000 for investment advisory services. Therefore, if you maintain less than $1 million under our management, you may be subject to fee that is in excess of 1.00%.
We typically deduct our AUM Fee from one or more of your accounts, in advance, on a quarterly basis. Because our AUM Fee is calculated as a percentage of your assets under management, the more assets you have in your advisory account, the more you will pay us for our investment management services. Therefore, we have an incentive to encourage you to increase the assets maintained in accounts we manage.
We also offer our Financial Planning services on a stand-alone basis at an hourly rate ranging from $200 to $1,000. We may offer “packaged” financial planning and consulting services for a fixed fee ranging from $7,500 to $50,000. The fee for any subsequent work shall be agreed to prior to commencing the engagement.
Tax preparation services are provided on a fixed fee basis ranging from $500 to $25,000.
Other Fees and Costs: Your investment assets will be held with a qualified custodian. Custodians generally charge brokerage commissions and/or transaction fees for effecting certain securities transactions. In addition, relative to all mutual fund and exchange traded fund purchases, certain charges will be imposed at the fund level (e.g. management fees and other fund expenses).
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.
Additional Information: For more detailed information about our fees and costs related to our management of your account, please See Item 5 in our ADV Part 2A.
When we act 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 conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. As an example, we may recommend a particular custodian to custody your assets, and we may receive support services and/or products from that same custodian, certain of which assist us to better monitor and service your account while a portion may be for the benefit of our firm.
Additional Information: For more detailed information about our conflicts of interest, please review our ADV Part 2A.
Our financial professionals are generally compensated on a salary basis. However, certain of our financial professionals, based upon their individual professional ability or their contribution toward the growth of the firm’s client base may receive a performance bonus from time-to-time. You should discuss your financial professional’s compensation directly with your financial professional.
Item 4 – Disciplinary History
Yes. We encourage you to visit www.Investor.gov/CRS to research our firm and our financial professionals.
Furthermore, we encourage you to ask your financial professional: As a financial professional, do you have any disciplinary history? If so, for what type of conduct?
Item 5 – Additional Information
Additional information about our firm is available on the SEC’s website at www.adviserinfo.sec.gov. You may contact our Chief Compliance Officer at any time to request a current copy of your ADV Part 2A or our relationship summary. Our Chief Compliance Officer may be reached by phone: (610) 975-0280.
A copy of our Part 2A is available at: https://files.adviserinfo.sec.gov/IAPD/Content/Common/crd_iapd_Brochure.aspx?BRCHR_VRSN_ID=692065