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erica@koehlerfinancial.com
A Registered Investment Advisor
Part 2A of Form ADV Brochure
Koehler Financial Services, Inc.
5764 James Drive
Stevensville, MI 49127
www.KoehlerFinancial.com
Erica L. Momany
President 269-429-0650
erica@koehlerfinancial.com
Dated: January 16, 2018
This Brochure provides information about the qualifications and business practices of Koehler Financial Services, Inc. If you have any questions about the contents of this Brochure, please contact us at 269-429-0650 and/or erica@koehlerfinancial.com. The information in this Brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Registration does not imply a certain level of skill or training. Additional information about Koehler Financial Services, Inc. is also available on the SEC's website at www.adviserinfo.sec.gov.
Material Changes Since Last Annual Brochure Update
The information provided below relates only to material changes that have occurred since our last annual update of our brochure which was April 20, 2017.
None
Table of Contents
Item Page
Item 1 Cover Page
Item 2 Material Changes
Item 3 Table of Contents
Item 4 Advisory Business
Item 5 Fees and Compensation
Item 6 Performance-Based Fees and Side-By-Side Management
Item 7 Types of Clients
Item 8 Methods of Analysis, Investment Strategies and Risk of Loss
Item 9 Disciplinary Information
Item 10 Other Financial Industry Activities and Affiliations
Item 11 Code of Ethics, Participation or Interest in Client Transactions and Personal Trading
Item 12 Brokerage Practices
Item 13 Review of Accounts
Item 14 Client Referrals and Other Compensation
Item 15 Custody
Item 16 Investment Discretion
Item 17 Voting Client Securities
Item 18 Financial Information
Item 19 Requirements for State Registered Advisers
ADV Part 2B for Randy P. Koehler
ADV Part 2B for Erica L. Momany
Item 4 Advisory Business
Koehler Financial Services, Inc. has been in business for over 30 years. Erica L. Momany is the principal owner and investment advisor representative of Koehler Financial Services, Inc.
Koehler Financial Services, Inc. primarily recommends variable annuities, mutual funds, unit investment trusts, exchange traded funds, and occasionally individual stocks and bonds to its clients. Koehler Financial Services, Inc. does recommend "no-load" mutual funds to its clients.
Koehler Financial Services, Inc. provides financial planning services. Financial planning services are always provided with portfolio management review to our clients.
Diversification
Providing our clients with diversified portfolios is our primary goal. Our portfolios start with or consist of selections from of over 10,000 stocks and bonds from all over the globe, with virtually no overlap. Overlap can be best described as owning the same things, or the opposite of diversifying. Our method also takes the emotion out of building your portfolio. We use the same disciplined approach each year and the investment strategies remain the same; however the results (the stocks and bonds we own) mostly through mutual funds, unit investment trusts, or variable annuities, will be different. We review our models daily and make tactical adjustments as needed. We re-allocate your account yearly according to our investment strategies.
How does Koehler Financial Services, Inc. utilize "Pro-Active Portfolio Management" and "Disciplined Investment Strategies".
Our disciplined approach:
- Removes human emotion from selecting your fund holdings.
- Utilizes formulas and strategies.
- Provides a level of consistency based on a disciplined process.
- Applies its "hands on" approach in managing your assets.
- Can move into cash during a catastrophic world event at the close of the nearest trading day.
- Applies asset preservation strategies during turbulent times.
There are three
componen
ts
to our approach.
- First, we review your account daily and make tactical adjustments as needed to the Disciplined Investment Strategies portfolios to take advantage of short-term cyclical movements. These changes do not affect the basic ratio of stocks to bonds, but they are designed to lock in gains or enhance returns.
- Then we re-allocate your assets on an annual basis according to our disciplined investment strategy, in essence re-creating your entire portfolio each year, but always in step with our disciplined investment strategy and your investment objectives.
- Finally, we apply tools that allowed us to exit the market during turbulent times, such as those we face today and those we experienced in 2002 and 2008.
Disciplined Investment Strategies
What is Disciplined Investment Strategies and more importantly why use this? We believe that price movements in securities are heavily influenced by people’s emotions. And as long as people let fear, greed, hope and ignorance cloud their judgment, they will continue to misprice securities and provide opportunities to those who rigorously use simple, time-tested strategies to buy and sell securities.
Our Disciplined Investment Strategies system reduces the element of human emotion in investing by taking a large group of stocks like those in an index (such as the S&P 500) and screening them down by applying single or multiple disciplined formulas. The logic behind a disciplined investment formula driven portfolio is simple, but very effective. The investor does not have to decide what to buy or sell, or when to do so. The all-important factor here is that emotions (fear, greed, hope and ignorance) are largely factored out of the decision making process.
Effective stock picking to create a portfolio is certainly more involved than just screening an index. Some very smart people have helped to create the formulas we use. Terms like price to cash flow, price to sales, market capitalization, earnings momentum and others are the basis for the resulting portfolios.
Past Performance
There is no crystal ball to predict the future. Past performance is no guarantee of future results. However, what better tool do we have available to us? We all look to past performance to help us gauge where we think we should invest our money. The problem with looking at the past performance of mutual funds and variable annuities as compared to our Disciplined Investment Strategies systems is consistency. Not only have most mutual funds and variable annuities failed to outperform the S&P 500 but, all too often, their stock selection process is erratic. Without an articulated strategy or process, which is consistently adhered to, the performance of mutual funds and variable annuities can’t be attributed to anything specific. If a manager has failed to follow consistently the same disciplined repeatable formula year in and year out, it becomes impossible to determine what drove the manager’s successes or failures. From this we can clearly understand why the mutual fund and variable annuity industry is constantly telling us past performance is no guarantee of future results. How could it be, if the selection process varies from year to year? This is where a disciplined, repeatable process is needed. The Disciplined Investment Strategies system does not bend to fads, panics, political changes, terrorist attacks, technology bubbles, housing bubbles, etc. We have a better idea of fitting our strategies to the market because we know how a specific strategy performs during a certain time in history. If one strategy did very well during the late 1990’s and did badly in the early 2000’s we would have some idea of what this strategy might do in similar situations.
The Total Package
Using the formulas alone is not enough to produce the best possible performance. So we have created five "model portfolios," constituting the Disciplined Investment Strategies system. Please see Item 8 on pages 12-13 for a detailed description of our five "model portfolios". Based on disclosures clients make in our Investor Profile Worksheet we determine the client’s objectives and level of risk the client is willing to take. We then recommend that the client place assets into a Disciplined Investment Strategy portfolio, which best fits the client’s profile. Once the portfolio is established, we then apply Pro-Active Portfolio Management.
Koehler Financial Services, Inc. does not specialize in a specific type of advisory service, or offer advice only with respect to limited types of securities. We tailor our advisory services to the individual needs of clients based upon their risk tolerance, and we do not participate in any wrap fee program by providing portfolio management services.
Koehler Financial Services, Inc. does manage client assets.
Total amount of assets under management is: $29,431,232
Amount that is under Discretionary management is: $29,431,232
Amount that is not under discretionary management is: $0.00
Date of calculation of most recent assets under management amount is: 01-16-2018
Koehler Financial Services, Inc. used the ADV Part 1 method to calculate our assets under management.
Item 5 Fees and Compensation
There are three fee structures: (a) Account(s) using mutual funds, variable annuities, (b) Account(s) using unit investment trusts and (c) Account(s) using individual securities.
(a) Where the account(s) uses mutual funds or variable annuities, the CLient understands that, based on the fair market value of the Account(s) at the end of each day, the management fee can be deducted directly from the net asset value of the Account(s) and this will be true of all shares. The fee shall equal a daily charge of approximately .00273973% or as a quarterly charge of .25%. This fee is a trail commisison and is used to ffset the hereto for mentioned management fee.
(b) Unit investment trust charges will be deducted each quarter in arrears. The quarterly charge is equal to .425% based on the value of the account on the last day of the quarter.
(c) The management fee for account(s) using individual securities is expressed as a quarterly charge of a maximum of .375%. For fairly inactive accounts, the Company may charge less than .375% based on the net asset value of each account on the last day of the calendar quarter.
Should the net asset value of the account(s) fall below the here before mentioned charge, the Client agrees to establish a cash account that allows Koehler Financial Services, Inc. to deduct from that account any amounts owed to Koehler Financial Services, Inc. This fee structure applies to all sizes of accounts.
Unless a client has received the firm's disclosure brocure at least 48 hours prior to signing the investment advisory contract, the investment advisory contact may be terminated by the client within five (5) business days of signing the contract without incurring any advisory fees.
Collection of Advisory fees: The Management fees are billed initially on a pro-rata basis from the start date until the end of the calendar quarter. The Client is aware that in most cases the directly deducted asset based fee will be adequate to meet the Client's management fee, for which the Client will be billed quarterly in arrears. These fees may be billed by Koehler Financial Services, Inc. directly to the custodian and withdrawn from the account(s). Until paid, the fees and expenses of Koehler Financial Services, Inc. shall constitute a lien upon the assets of the client’s account(s). If the client objects to the amount being invoiced, the client may notify Koehler Financial Services, Inc. by telephone (269) 429-0650, fax at (269) 429-8011 or in person at 5764 James Drive, Stevensville, MI 49127.
The custodian’s statement in each calendar quarter may separately reflect any management fees paid. Management fees directly paid by the client may not be reflected on the custodian’s statement. For client’s whose management fees have been completely satisfied by the offset of trail commission, the Client shall not receive a quarterly invoice from Koehler Financial Services, Inc. The client may terminate the written billing authorization at any time.
The authorization to withdraw the fees and/or commissions shall be limited to the above schedule(s) only. Koehler Financial Services, Inc. will notify the client by first class mail at least seven (7) days prior to the debiting of fees from the client’s cash account. The direct deduction which is a trail commission and is used to offset client’s management fees shall not require advanced notice. For client’s whose management fees have been completely satisfied by the offset of trail commission, said Client shall not receive a quarterly invoice from Koehler Financial Services, Inc. The Custodian will send to the Client a quarterly statement showing all Account(s) activity. A copy of the invoice will be sent to the client at the same time it is sent to the custodian and the invoice will include the formula and figures used for the fee calculation. If a client has both types of accounts they will be treated separately as described above.
The fees and expenses clients may pay in connection with the Adviser’s advisory services. All Koehler Financial Services, Inc. fees are completely disclosed. Koehler Financial Services, Inc. does not hold customer funds. The custodians may have fees associated with mutual funds, variable annuities, variable life and unit investment trust products. The client is made aware of all fees and expenses in the prospectus and in the Investor Profile and Suitability Form, which the client signs and receives a copy of at the time the client-advisor relationship is established and during any future product purchases.
Clients will incur brokerage and other transaction costs. Client who trade stocks and bonds at a Qualified Custodian, will incur trading fees and commissions through the Qualified Custodian. Koehler Financial Services, Inc. does not collect any of these fees. Koehler Financial Services, Inc. does not accept fees in advance from clients.
Neither Koehler Financial Services, Inc. nor its supervised persons accepts compensation for the sale of securities or other investment products, including asset-based sales charges or service fees from the sale of mutual funds. All of Erica L. Momany's commissions are assigned to Koehler Financial Services, Inc. and/or Koehler Financial, LLC. The investment advisor does not receive any commissions. Erica L. Momany receives a salary from Koehler Financial Services, Inc. Their activities with Koehler Financial Services, Inc. and its affiliate, Koehler Financial, LLC. contribute funds towards their salary.
Clients have the option to purchase investment products that Koehler Financial Services, Inc. recommends through other brokers or agents that are not affiliated with Koehler Financial Services, Inc.
Koehler Financial Services, Inc. receives revenue from its affiliate, Koehler Financial, LLC. in the form of dividend payments which are declared monthly by its affiliate, Koehler Financial, LLC.
Koehler Financial Services, Inc., through it’s brokerage company, Koehler Financial, LLC., a Financial Industry Regulatory Authority member, receives commissions or markups as follows: Koehler Financial Services, Inc. will invest the client’s funds primarily in no load mutual funds or mutual funds waiving any applicable sales load, or offset any quarter annual management fees with commissions received from mutual fund, variable annuity or unit investment trust providers. Koehler Financial, LLC. may receive additional commissions for first year start up fees for which a portion shall not be offset against management fees. These additional commissions may create a conflict of interest.
Item 6 Performance Based Fees & Side-By-Side Management
Neither Koehler Financial Services, Inc. nor any of its supervised persons accepts performance-based fees.
Neither Koehler Financial Services, Inc. nor any of its supervised persons manage accounts that are charged a performance-based fee or accounts that are charged another type of fee (e.g., hourly or flat fee).
Item 7 Types of Clients
Koehler Financial Services, Inc. services the following types of clients:
- Individuals
- High net worth individuals
- Pension and profit sharing plans
- Trusts and estates
- Corporations or other business entities
In order for a client to open an advisory account, Koehler Financial Services, Inc. requires the following:
- Completed risk tolerance questionnaire
- Fully disclose assets and liabilities
- Sign management agreement
- Sign limited power of attorney for trading and information purposes
- Customer must agree to give discretionary authority over their accounts
Koehler Financial Services, Inc. does not have a minimum account balance requirement to open or to maintain an account open, however clients must satisfy the minimum account requirements of their custodian to open or maintain an account open with Koehler Financial Services, Inc.
Item 8 Methods of Analysis, Investment Strategies, & Risk of Loss
Koehler Financial Services, Inc. may use the following methods of analysis: charting, fundamentals, technical, cyclical, and disciplined investment strategies which are described above. Koehler Financial Services, Inc. uses a Disciplined Investment Strategy. Our method also takes the emotion out of building your portfolio. We use the same disciplined approach each year and the investment strategies remain the same; however the results (the stocks and bonds owned by the client) will be different. First, we review your account daily and make adjustments as needed. Then we re-allocate your assets on an annual basis according to our investment strategies. Finally, we apply tools that allowed us to exit the market during turbulent times, such as those we faced today and those we experienced in 2002 and 2008 which preserved our clients’ assets.
Investing in securities involves risk of loss that clients should be prepared to bear.
The material risks involved and a detailed description for each of our five significant investment strategies or method of analysis used by Koehler Financial Services, Inc. is as follows:
Koehler Financial Portfolios
Stocks
Bonds
Cash or Bonds
Investment Objective
Mirrored Index
Ultra Conservative
0%
0%
100%
Total Preservation of Capital
Corporate Bond – General AverageIntermediate-Term Bond Average
Conservative
40%
20%
40%
Conservative approach to the stock market with capital preservation
Balanced AverageLarge Value Average
Moderate
45%
20%
35%
A balanced approach to the stock market with capital preservation
Balanced AverageLarge Value Average
Strategic Wealth
65%
10%
25%
A growth and income approach to the stock market with capital preservation
Growth & Income AverageLarge Value Average
Total Return
75%
5%
20%
A growth and income approach to the stock market with more weight applied to growth than income
Growth & Income AverageLarge Value Average
Although customer’s portfolios are managed to the chosen strategy, Koehler Financial Services, Inc. may change or adjust the portfolios based on current market and economic circumstances. Koehler Financial Services, Inc.’s primary investment strategy does not involve frequent trading.
Material Risks of Investment Strategies
Ultra Conservative: A 100% bond portfolio is subject to interest rate risk, as interest rate effect bond prices inversely.
Conservative: This portfolio is subject to fluctuations in the market resulting from economic conditions, market trends, company performance, etc., though it is not subject to the same level of risk as the Moderate, Strategic Wealth, and Total Return portfolios.
Moderate: This portfolio will experience a higher level of risk than the Conservative portfolio, but less risk than the Strategic Wealth and Total Return portfolios, due to the higher percentage of stock investment. The factors producing fluctuation in the Conservative portfolio will also influence this portfolio.
Strategic Wealth: This portfolio, which has a 35% cash or bond position, is exposed to less risk than the Total Return portfolio, which invests 75% in stocks. 65% of the value of this portfolio will be influenced by the factors affecting the previously mentioned portfolios.
Total Return: This portfolio carries the greatest risk, with 75% invested in stocks and 25% invested in cash or bond positions. The increase or decrease of your investment is directly related to the performance of the companies in whose stock you have invested.
Item 9 Disciplinary Information
A. Neither Koehler Financial Services, Inc. nor its management person(s) has ever been nor are they currently part of a criminal or civil action in a domestic, foreign or military court of competent jurisdiction in which they were convicted of, or pled guilty or nolo contender ("no contest") to any felony; a misdemeanor that involved investments or an investment-related business, fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, or extortion. Neither Koehler Financial Services, Inc. nor its management person(s) has ever been nor are they currently in a conspiracy to commit any of these offenses. Neither Koehler Financial Services, Inc. nor its management person(s) has ever been nor are they currently the named subject of a pending criminal proceeding that involves an investment-related business, fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or in a conspiracy to commit any of these offenses. Neither Koehler Financial Services, Inc. nor its management person(s) has ever been nor are they currently involved in a violation of an investment-related statue or regulation. Neither Koehler Financial Services, Inc. nor its management person(s) has ever been nor are they currently the subjects of any order, judgment, or decree permanently or temporarily enjoining, or otherwise limiting, them from engaging in any investment-related activity, or from violating any investment-related statute, rule, or order.
Neither Koehler Financial Services, Inc. nor its management person(s) has ever been nor are they currently a part of any administrative proceeding before the SEC, any other federal regulatory agency, any state regulatory agency, or any foreign financial regulatory authority in which they were found to have caused an investment-related business to lose its authorization to do business. Neither Koehler Financial Services, Inc. nor its management person(s) has ever been nor are they currently found to have been involved in a violation of an investment-related statute or regulation or the subject of an order by the agency or authority denying, suspending, or revoking the authorization of Koehler Financial Services, Inc. or its management person(s) to act in an investment-related business; barring or suspending its investment-related activities. Neither Koehler Financial Services, Inc. nor its management person(s) has had their investment related activities significantly limited. A civil money penalty has never been imposed on either Koehler Financial Services, Inc. or its management person(s).
Neither Koehler Financial Services, Inc. nor its management person(s) has ever been nor are they currently a part of a self-regulatory organization (SRO) proceeding in which they were found to have caused an investment-related business to lose its authorization to do business; nor were they found to have been involved in a
violation of the SRO’s rules that caused them to be barred or suspended from membership or from association with other members. Neither Koehler Financial Services, Inc. nor its management person(s) has ever been expelled from membership, nor ever had their investment-related activities significantly limited, nor has Koehler Financial Services, Inc. or its management person(s) ever been imposed a fine.
Item 10 Other Financial Industry Activities & Affiliations
Koehler Financial Services, Inc. is the parent company of Koehler Financial, LLC, a registered limited broker-dealer, offering only mutual funds, variable annuities, variable life, and unit investment trust. Randy P. Koehler and Erica L. Momany are the registered principals of Koehler Financial, LLC.
Neither Koehler Financial Services, Inc. nor its registered management person(s) is registered or has an application pending to register, as a futures commission merchant, commodity pool operator, a commodity trading advisor, or an associated person of the foregoing entities.
Material conflicts of interest created with clients as a result of Koehler Financial Services, Inc.’s relationship or arrangement with Koehler Financial, LLC. are described in item 12.
Koehler Financial Services, Inc. operates a general agency life and property and casualty insurance business, which markets life and property and casualty insurance to clients as part of our financial planning process. Clients are not required to purchase life and property and casualty insurance as a condition of receiving advisory services from Koehler Financial Services, Inc. or visa versa. There is a material conflict of interest created with clients as a result of Koehler Financial Services, Inc.’s relationship or arrangement with the insurance and financial planning business.
Item 11 Code of Ethics, Participation or Interest in Client Transactions and Personal Trading
The following is a brief description of Koehler Financial Services, Inc.’s code of ethics:
A standard (or standards) of business conduct that Koehler Financial Services, Inc. requires of each supervised person, which standard must reflect Koehler Financial Services, Inc.’s fiduciary obligations and those of its supervised persons;
Provisions requiring the supervised persons to comply with applicable federal securities laws;
Provisions that require all "access persons" to report, and the firm to review, their personal securities transactions and holdings periodically as provided in the Rule;
Provisions requiring supervised persons to report any violations of the code of ethics promptly to the chief compliance officer or, provided the chief compliance officer also receives reports of all violations, to other persons designated in the code of ethics; and
Provisions requiring the firm to provide each supervised person with a copy of the code of ethics and any amendments, and requiring the supervised persons to provide the firm with a written acknowledgment of their receipt of the code and any amendments.The Chief Compliance Officer is responsible for overseeing the code of ethics where applicable, providing any revisions and implementing its provisions. This oversight shall, at a minimum, include the following on a regular basis:
Reviewing access persons’ personal securities reports
Assessing whether access persons are following required internal procedures
Evaluating transactions to identify any prohibited practices
Assessing relative performance of personal accounts vs. customer accounts.
Koehler Financial Services, Inc. will provide a copy of our code of ethics to any client or prospective client upon request.
Neither Koehler Financial Services, Inc. nor any of its related persons recommends to clients, or buys or sells for client accounts, securities in which Koehler Financial Services, Inc. or its related person has a material financial interest.
Koehler Financial Services, Inc. and its related persons invest in the same securities (or related securities) that its related persons recommend to clients. Koehler Financial Services, Inc. and its related persons follow the same account opening procedures as our clients. All trades are made at the same time eliminating any conflict of interest as described in the next paragraph.
Koehler Financial Services, Inc. and/or its related persons recommend securities to clients, or buy or sell securities for client accounts, at or about the same time that Koehler Financial Services, Inc. or its related persons buy or sell the same securities for its own account or the account of its related persons. Koehler Financial Services, Inc.’s procedure is to trade all clients’ accounts at the same time, including any and all of its accounts and the accounts of its related persons. Accordingly our procedure eliminates any conflicts of interest.
Item 12 Brokerage Practices
In the absence of client directed brokerage, Koehler Financial Services, Inc. will recommend that the client establish an account with a Qualified Custodian, a FINRA registered broker dealer, and/or Koehler Financial, LLC. In recommending a broker, Koehler Financial Services, Inc. considers best execution for client transactions, including value of research provided, commission rate, execution capability. Koehler Financial Services, Inc. may recommend Koehler Financial, LLC based on its interest in receiving client referrals. Custody and clearing services for the account will be provided
by a Qualified Custodian or the issuing mutual fund, unit investment trusts, or variable annuity provider.
1. Research and Other Soft Dollar Benefits. Koehler Financial Services, Inc. and its affiliated company, Koehler Financial, LLC. have no research and/or soft dollar benefit arrangements. Koehler Financial Services, Inc. nor its affiliated company, Koehler Financial, LLC. is receiving any funds for research or any soft dollar benefits.
2. Brokerage for client Referrals. Koehler Financial Services, Inc. does consider, in selecting or recommending broker-dealers, whether it or its related persons receives client referrals from a broker-dealer or third party.
Koehler Financial Services, Inc. may have an incentive to select or recommend Koehler Financial, LLC. based on Koehler Financial Services, Inc.’s interest in receiving Client referrals, rather than on the client’s interest in receiving the most favorable execution.
3. Directed Brokerage. In the absence of a client directed brokerage, Koehler Financial Services, Inc. will recommend Koehler Financial, LLC. or qualified custodians. Koehler Financial, LLC. and Koehler Financial Services, Inc. have an economic relationship that may create a material conflict of interest which is disclosed in the following paragraph.
Koehler Financial, LLC. may be unable to achieve most favorable execution of clients transactions resulting in clients paying higher brokerage commissions because Koehler Financial Services, Inc. may be unable to aggregate orders to reduce transaction costs or clients may receive less favorable prices. Koehler Financial Services, Inc. has generally found no cost difference due to not aggregating orders. Koehler Financial Services, Inc. does aggregate orders when it has the opportunity to do so.
Item 13 Review of Accounts
Koehler Financial Services, Inc. reviews client accounts daily and tactically makes profit taking adjustments as needed to the Disciplined Investment Strategies portfolios to take advantage of short-term cyclical movements. These changes do not affect the basic ratio of stocks to bonds, but they are designed to lock in gains or enhance returns.
Koehler Financial Services, Inc. re-allocates clients assets on an annual basis according to our disciplined investment formula, in essence re-creating the entire portfolio each year, but always in step with our disciplined investment formulas and your investment objectives. Reallocation may occur up to two times each calendar year at the discretion of Randy P. Koehler.
Randy P. Koehler conducts all account reviews. Major changes in the client’s situation or needs may call for an update prior to the scheduled annual review. All areas in the portfolio that would be affected by the change are reviewed and updated.
The review consists of quarterly reporting and verifying customer balances against reports at the quarter end and year end reporting period.
Item 14 Client Referrals and Other Compensation
Koehler Financial Services, Inc. does not receive any economic benefits (including sales awards and other prizes) from non-clients for providing investment advice to its clients.
Koehler Financial Services, Inc. does not directly or indirectly compensate any person who is not a Koehler Financial Services, Inc.’s supervised person for client referrals.
Item 15 Custody
Koehler Financial Services, Inc. does not have physical custody of client’s funds or securities. Qualified custodians have custody of client’s funds and securities. The custodian sends quarterly, or more frequent, account statements. Therefore, all clients will receive account statements from the custodian and upon receipt should carefully review their statements. Koehler Financial Services, Inc. also sends account statements to the clients on a quarterly and annual basis and clients are urged to compare account statements received from the custodian and account statements provided by Koehler Financial Services, Inc.
Item 16 Investment Discretion
Koehler Financial Services, Inc. accepts discretionary authority to manage securities accounts on behalf of clients. Koehler Financial Services, Inc. maintains a limited power of attorney for each discretionary account. This limited authority allows Koehler Financial Services, Inc. to determine the specific securities and the amount to be bought and sold but not to transfer any cash or securities out of the account. Selection of investments follows the general investment parameters selected for the client as well as any specific instructions from each client.
Item 17 Voting Client Securities
Koehler Financial Services, Inc. does not accept and will not accept authority to vote client securities. The client is responsible for voting all proxies and consents of securities held in the Account(s). Neither Koehler Financial Services, Inc. nor Koehler Financial, LLC. has the authority to receive any shareholder or other proxy materials and they will not vote proxies or other consents with respect to any securities held in the client's account(s).
Item 18 Financial Information
Koehler Financial Services, Inc. does not require or solicit prepayment in any amount from any client, and invoices are billed in arrears for all clients.
Koehler Financial Services, Inc. has never been nor is it currently subject to a bankruptcy petition.
Koehler Financial Services, Inc. does not have custody of client funds or securities or require or solicit prepayment of more than $500 in fees per client six months in advance.
Item 19 Requirements for State-Registered Advisers
A. Randy P. Koehler and Erica L. Momany are current principal executive officers and management persons for Koehler Financial Services, Inc. Please reference Part 2B of Form ADV for Randy P. Koehler and Erica L. Momany for their formal eduction and business background.
B. Please reference Part 2B of Form ADV for Erica L. Momany for information on any business in which are are actively engaged in.
C. Erica L. Momany are not compensated for advisory services with performance-based fees.
D. Randy P. Koehler has never been involved in any of the following:
An award or otherwise being found liable in an arbitration claim alleging damages in excess of $2,500 involving any of the following:an investment or an investment-related business or activity
fraud, false statement(s), or omissions
theft, embezzlement, or other wrongful taking of property
bribery, forgery, counterfeiting, or extortion; or
dishonest, unfair, or unethical practices.
An award or otherwise being found liable in a civil, self-regulatory organization, or administrative proceeding involving any of the following:an investment or in an investment-related business or activity
fraud, false statement(s), or omissions
theft, embezzlement, or other wrongful taking of property
bribery, forgery, counterfeiting, or extortion; or
dishonest, unfair, or unethical practices.
Erica L. Momany have no relationship or arrangement with any issuer of securities not listed in Item 10. C. of Part 2A.
Part 2B of Form ADV:
Brochure Supplement
Erica L. Momany
5764 James Drive
Stevensville, MI 49127
269-429-0650
Koehler Financial Services, Inc.
5764 James Drive
Stevensville, MI 49127
269-429-0650
Dated: January 16, 2018
This Brochure Supplement provides information about Erica L. Momany that supplements the Koehler Financial Services, Inc. Brochure. You should have received a copy of that Brochure. Please contact Randy P. Koehler, President at 269-429-0650 if you did not receive Koehler Financial Services, Inc.'s Brochure or if you have any questions about the contents of this supplement. Additional information about Erica L. Momany is available on the SEC’s website at www.adviserinfo.sec.gov.
Item 2 Educational Background and Business Experience
As Secretary of Koehler Financial Services, Inc., Mrs. Erica L. Momany, born in 1977, brings over 20 years of experience in the investment field to Koehler Financial Services, Inc. She is a registered securities principal of Koehler Financial, LLC, a FINRA limited registered broker dealer. Mrs. Momany holds FINRA Series 6, 26, 63, and 65 licenses. Erica graduated from Siena Heights University with a Bachelor of Business Administration on May 7, 2000. Erica provides financial planning services as a regular part of client’s initial and ongoing servicing interviews.
Item 3 Disciplinary Information
This Brochure Supplement is available electronically.
A. Erica L. Momany has never been nor is she currently part of a criminal or civil action in a domestic, foreign or military court of competent jurisdiction in which she was convicted of, or pled guilty or nolo contender ("no contest") to any felony; a misdemeanor that involved investments or an investment-related business, fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, or extortion. Erica L. Momany has never been nor is she currently in a conspiracy to commit any of these offenses. Erica L. Momany has never been nor is she currently the named subject of a pending criminal proceeding that involves an investment-related business, fraud, false statements or omissions, wrongful taking of property, bribery, perjury, forgery, counterfeiting, extortion, or in a conspiracy to commit any of these offenses. Erica L. Momany has never been nor is she currently involved in a violation of an investment-related statue or regulation. Erica L. Momany has never been nor is she currently the subject of any order, judgment, or decree permanently or temporarily enjoining, or otherwise limiting, her from engaging in any investment-related activity, or from violating any investment-related statute, rule, or order.
Erica L. Momany has never been nor is she currently a part of any administrative proceeding before the SEC, any other federal regulatory agency, any state regulatory agency, or any foreign financial regulatory authority in which she was found to have caused an investment-related business to lose its authorization to do business. Erica L. Momany has never been nor is she currently found to have been involved in a violation of an investment-related statute or regulation nor was she the subject of an order by the agency or authority denying, suspending, or revoking the authorization of Erica L. Momany to act in an investment-related business; barring, suspending or significantly limiting her investment-related activities. A civil money penalty has never been imposed on Erica L. Momany.
Erica L. Momany has never been nor is she currently a part of a self-regulatory organization (SRO) proceeding in which she was found to have caused an investment-related business to lose its authorization to do business; nor was she found to have been involved in a violation of the SRO's rules that caused her to be barred or suspended from membership or from association with other members. Erica L. Momany has never been expelled from membership, nor ever had her investment-related activities significantly limited, nor has Erica L. Momany ever been imposed a fine.
D. Erica L. Momany has never been nor is she currently part of any other proceeding in which her professional attainment, designation, or license was revoked or suspended because of a violation of rules relating to professional conduct.
Item 4 Other Business Activities
A. Erica L. Momany is actively engaged in an investment-related business, as she is a registered principal of Koehler Financial, LLC. As a limited broker-dealer, Koehler Financial Services, LLC. may only offer mutual funds, variable annuities, variable life, and unit investment trusts.
Erica L. Momany does not have an application pending to register, as a futures commission merchant, commodity pool operator, a commodity trading advisor, or an associated person of the foregoing entities.
There may be material conflicts of interest created with clients as a result of Erica L. Momany's relationship or arrangement with Koehler Financial, LLC. which are disclosed in Item 12 of ADV Part 2A.
Erica L. Momany does not recommend or select other investment advisers for her clients. Therefore, there is no material conflict of interest regarding compensation received.
Erica L. Momany does not receive commission, bonuses or other compensation from the sale of securities or other investment products, including as associated person of Koehler Financial Services, LLC or as registered investment adviser representative of Koehler Financial Services, Inc. Erica L. Momany does not receive distribution or services ("trail") fees from the sale of mutual funds, variable annuities and/or unit investment trusts. All of Erica L. Momany’s commissions are assigned to Koehler Financial Services, Inc. and/or Koehler Financial, LLC. The investment advisor does not receive any commissions. Erica L. Momany receives a salary from Koehler Financial Services, Inc. Her activities with Koehler Financial Services, Inc. and its affiliate, Koehler Financial, LLC. contribute funds towards her salary.
Erica L. Momany is actively engaged in a general agency life and property and casualty insurance business, as he is an insurance agent of Koehler Financial Services, Inc., which markets life and property and casualty insurance to clients as part of our financial planning process. Clients are not required to purchase life and property and casualty insurance as a condition of receiving advisory services from Koehler Financial Services, Inc. or visa versa. There is a material conflict of interest created with clients as a result of Koehler Financial Services, Inc.’s relationship or arrangement with the insurance and financial planning business.
Erica L. Momany is a Coach for Beachbody. Beachbody provides fitness programs and nutritional supplements for a healthier lifestyle. Beachbody is a non investment related company. There is no material conflict of interest created with clients or Koehler Financial Services, Inc. as a result of Erica L. Momany's outside activity with Beachbody.
Erica L. Momany is a Girl Scout Leader for the Girl Scouts of Northern Indiana Michiana. Girl Scouts builds girls of courage, confidence, and character, who make the world a better place. Girl Scouts is a non investment related company. There is no material conflict of interest created with clients or Koehler Financial Services, Inc. as a result of Erica L. Momany's outside activity with the Girl Scouts of Northern Indiana Michiana.
Erica L. Momany sits on the board for the Hollywood PTO. The Hollywood PTO is the parent teacher organization and provides and organizes programs for the elementary school. Hollywood PTO is a non investment related company. There is no material conflict of interest created with clients or Koehler Financial Services, Inc. as a result of Erica L. Momany's outside activity with Hollywood PTO.
B. Erica L. Momany is not actively engaged in any business or occupation for compensation not discussed in response to Item 4(a).
There is no other business activity or activities that provide a substantial source of Erica L. Momany’s income or involves a substantial amount of her time.
Item 5 Additional Compensation
Erica L. Momany does not receive any economic benefits (including sales awards or other prizes, bonus that is based, at least in part, on the number or amount of sales, client referrals or new accounts. This does not include regular salary or regular bonuses) from non-clients for providing investment advice to her clients.
Koehler Financial Services, Inc., Erica L. Momany, through it’s brokerage company, Koehler Financial, LLC., a Financial Industry Regulatory Authority member, receives commissions or markups as follows: Koehler Financial Services, Inc. will invest the client’s funds primarily in no load mutual funds or mutual funds waiving any applicable sales load, or offset any quarter annual management fees with commissions received from mutual funds, variable annuities and/or unit investment trusts. Koehler Financial, LLC. may receive additional commissions for first year start up fees for which a portion shall not be offset against management fees. These additional commissions may create a conflict of interest.
Koehler Financial Services, Inc. receives revenue from its affiliate, Koehler Financial, LLC. in the form of dividend payments which are declared monthly by its affiliate, Koehler Financial, LLC.
Item 6 Supervision
Erica L. Momany is an investment adviser representative and reviews all Randy P. Koehler's, her supervisor’s work.
The person in charge of supervising Erica L. Momany's advisory activities on behalf of Koehler Financial Services, Inc. is Randy P. Koehler, President. His phone number is 269-429-0650.
Item 7 Requirements for State-registered Advisers
Erica L. Momany has never been involved in any of the following:An award or otherwise being found liable in an arbitration claim alleging damages in excess of $2,500 involving any of the following:an investment or in an investment-related business or activity
fraud, false statement(s), or omissions
theft, embezzlement, or other wrongful taking of property
bribery, forgery, counterfeiting, or extortion; or
dishonest, unfair, or unethical practices.
An award or otherwise being found liable in a civil, self-regulatory organization, or administrative proceeding involving any of the following:an investment or in an investment-related business or activity
fraud, false statement(s), or omissions
theft, embezzlement, or other wrongful taking of property
bribery, forgery, counterfeiting, or extortion; or
dishonest, unfair, or unethical practices.
B. Erica L. Momany has never been the subject of a bankruptcy petition.
5764 James Drive, Stevensville, MI 49127