Prudence Advisory Services

Prudence Advisory Services is a state-registered investment adviser that offers advisory services to individuals, trusts, estates and charitable organizations by recommending and referring clients to unaffiliated third‑party investment advisers through managed‑account programs. The firm does not directly manage client portfolios and reported no assets under management as of December 31, 2018.

Instead of providing direct portfolio management, Prudence assists clients in establishing investment objectives, selects and supervises third‑party investment advisers (TPIAs), and monitors portfolio performance while the selected TPIA typically manages accounts on a discretionary basis. Compensation for Prudence’s advisory role is paid by the selected TPIA—typically in arrears on a monthly or quarterly basis and disclosed as up to 1.00%—rather than billed to clients as a direct percentage‑of‑assets fee.

A distinctive aspect of the firm is that a management person is also licensed and registered as an insurance agent and may sell variable annuities, receiving separate commission compensation and spending approximately 20% of her time on insurance activities, a conflict the brochure discloses. The brochure also identifies specific TPIAs the firm refers to (for example, Horter Investment Management, Matson Money and Sound Income Strategies), notes that Prudence does not take custody of client assets, and describes a referral/oversight model that differs from managers who directly charge AUM fees and maintain custody.