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Item 4. Advisory Business

 

At Tamar Securities, LLC, we specialize in the following types of services: Wrap Account Portfolio Management, Analysis of Independent Money Managers, Financial Planning and Financial Consulting Services, Alternative Investments, Corporate Cash Programs, and Professional Alliance Network services. As of 12/31/2015 the firm’s assets under management are $206,683,895.

A. Description of our advisory firm, including how long the firm and our principal owner(s) have been in business.

We are dedicated to providing individuals, pensions, profit sharing plans, trusts, estates, charitable organizations, corporations and other types of organizations and individual clients with a wide array of investment advisory services. Tamar Securities, LLC, is a limited liability company formed in the State of California. Our firm has been in business as an investment adviser since June of 2010 and is solely owned by Amit Raz Stavinksy. Mr. Stavinksy has been a registered investment professional in the US since 1991.

B. Description of the types of advisory services we offer.

At our firm, all the services provided first begin with an Investment Policy and/or in depth analysis of each client’s unique personal criteria that includes their goals, needs, risk tolerance, and income needs versus growth, tax, legal issues, liquidity requirements, and investment objectives and guidelines.

Second, Global Asset Allocation Models that focus on preservation of capital, long-term asset growth, superior performance in both rising and falling market cycles, and absolute returns independent of the market’s strength or weakness are implemented.

Next, our firm initiates procedures of Portfolio Implementation by performing the following disciplines:
- Evaluating investment managers and holdings on the basis of both qualitative and quantitative criteria;
- Making sure that portfolio managers consistently employ and follow their presubscribed disciplined investment process;
- Subjecting all investment professionals and financial products to a rigorous screening process (This includes: organizational ownership, portfolio management tenure, investment process and implementation, investment research, long and short-term performance, and risk/reward assumed in portfolios as measured by their Beta, Alpha, active market timing, and significant sector and position concentration), and monitoring and rebalancing asset allocation models on either quarterly, semiannually or annually basis in order to establish an Efficient Frontier for increasing portfolio returns and decreasing volatility.

Lastly, we conduct periodic ongoing reviews with all clients. This process includes the followings:
- Review of portfolio managers, financial products, and of the entire investment holdings benchmarked each quarter against their respective Equity and Fixed Income indexes;
- Recalibrate each client’s asset allocation models as his or her life circumstances change, and;
- Present consolidated reporting that should include each client’s entire investment holdings throughout the banking industry.

(1.) Wrap Account Portfolio Management:

(a)Fixed Income Portfolios (FIP®):

Our wrap Fixed Income Portfolio Management service is described separately in Part 2A, Appendix 1 (“Fixed Income Portfolio (FIP®) Wrap Fee Program Accounts”).

(b)Independent Relative- and Value-Oriented Global Equity Portfolios:

We offer different wrap fee programs for Independent Relative-and Value-Oriented Global Equity Portfolios, including exchange-traded fund of funds (TAF®), mutual fund of funds (TAM®), in-house value money manager (MVS®), a combination of all disciplines (TAV sm) Independent Money Managers (Large Cap Value- Brandes Global and/or International, Large Cap Value- Cambiar and Large Cap Value- Davis.) and where appropriate Alternative Investments for qualified investors (Long/Short mostly Global Wireless Mobility/Technology hedge fund- Alkeon, and ACAP. Private Equity, and discounted Income producing- real estate investments). The programs listed below are further described separately in the respective Part 2A, Appendix 1 wrap fee program brochure:

(1) Total Asset Fund (TAF®)
(2) Total Asset Market (TAM®)
(3) Market Value Securities (MVS®)
(4) Total Asset Value (TAV sm)

(2.) Non-Wrap Account Portfolio Management:

All of our Wrap Account Portfolio Management services are also available as Non-Wrap Account Portfolio Management services. The client in such case would be responsible for all transaction costs associated with the ongoing management of their accounts. The services for our Non-Wrap Account Portfolio Management are as follows:

(a) Fixed Income Portfolios (FIP®):

Fixed Income Portfolio (FIP®) offers a discretionary fee based value strategy that includes discounted taxable high yield bonds, double tax-exempt and taxable municipal bonds, preferred stocks, convertible bonds, and foreign- denominated bonds. The firm emphasizes discounted high grade debt securities over equity and alternative investments in order to achieve both constant annual income returns and fixed income price appreciation. The firm may use proceeds accumulated from bond redemptions and income generated in order to invest in equities.

Our group performs daily, in depth, independent research of debt instruments regardless of size and ratings.

In-house research of all prospectuses and published updates are analyzed and stacked against both the rating agencies’ opinion, and the street research reports. In addition, the same In-house research is also applied to the Municipal Debt Market in California. Near two decades of researching and investing in this space has landed our firm with a large data base of a vast California Municipal Debt issuance as well as a unique set of expertise to enable us to capitalize quickly when dislocations in this debt market occur.

Management of Fixed Income Portfolios (FIP®) can be performed on a dual platform: Discretionary and Non-Discretionary fee basis (Registered Investment Advisor), and Discretionary and Non-Discretionary transactional basis through our firm’s association with the broker dealer: Purshe Kaplan Sterling Investments (PKS), and their clearing operations with National Financial Services (NFS). Additionally, the broker-dealers we do advisory business with may clear through RBC Capital Markets LLC, Pershing LLC, Legent Clearing, Inc. Wedbush Morgan Securities and Crews & Associates, Inc., Inc. Israeli citizens will be able to open accounts with Tamar Securities, LLC which are custodied with Bank of Hapoalim domiciled in Israel. Whereby we will place the trades through Crews & Associates, Inc., an SEC registered investment advisor and FINRA/SIPC member broker-dealer.

We seek professional Bid/Offer execution of bond trades, across all Fixed Income Desks on Wall Street. It is our motto to fight on behalf of our clients for best in class executions. In order to accomplish this optimal Bid/Offer pricing principal, we first establish multiple relationships with Fixed Income desks around the country.

Second, all bond purchase Offerings are Bid on, and finally, all bond sell Offerings are put out for a Bid from at least three bond desks on Wall Street. This process ensures best in class trade executions; and therefore, substantially improves Bid/Offer pricings for the firm’s clients. In many cases, and at odds with Wall Street practices, this Bid/Offer execution platform is duplicated for odd lot bond offerings where there is not enough liquidity; thereby, allowing our firm to Bid on bond Offerings at even deeper discounts then is warranted in a typical market place.

Lastly, independently of on which bond desk a Fixed Income transaction took place, all trades settle with our firm’s preferred custodian; Schwab Institutional.

Periodic ongoing reviews are scheduled with all clients. This process includes the followings:
- Review of the entire portfolio as well as its underlying Fixed Income Securities benchmarked each quarter against their respective Fixed Income indexes;
- Recalibrate each client’s asset allocation models as his or her life circumstances change, and;
- Present consolidated reporting that incorporates the Fixed Income Portfolios (FIP) with the entire holdings of the clients’ other investments disciplines.

(b)Independent Relative- and Value-Oriented Global Equity Portfolios:

(1) Total Asset Fund (TAF®):

"TAF®" offers a unique, discretionary fee based, managed money program that utilizes "no load" Exchange Traded Funds (ETFs) and/or Index Funds (Although there are no upfront sales charges, other fees and expenses do apply) in order to structure long-term Global Asset Allocation portfolios.

The program endorses a top-down value discipline that seeks to identify globally undervalued Markets, Economic Sectors, Industries, Fixed Income, and Specific Securities in “Super Cycles” that sell at deep discounts to both their respective and historical intrinsic values. “Super Cycles” are defined as undervalued Economic Sectors, and Industries in the Global Economy that our firm believes are best positioned for “Long-Term Growth”. The select list due diligence process begins with a rigorous screening process of the entire global universe of over 1000 Exchange and/or Index Traded Funds (ETFs).

Next, qualitative and quantitative assessments are applied for deciding on the best in class underlying funds that will end up making the Total Asset Fund portfolio (TAF®) portfolio. This extensive due diligence process of filtering out the entire global universe of all Exchange and/or Traded Index Funds includes but is not limited to the followings:
- Researching organizational ownership;
- Finding out portfolio management tenure;
- Understanding the investment process and its implementation, and;
- Studying long and short-term performance results.

This process also attempts to evaluate risk/reward parameters assumed by Exchange and/or Traded Index Funds as measured by their quantitative and/or Mathematical Calculations of Risk.

The followings are some of the criteria studied when quantitative risk parameters are evaluated: Beta, Alpha, Standard Deviation, Sharpe Ratio, and R-Squared.

In addition, the followings are some of the risk parameters researched when qualitative data is included: Market Risk, Economic Sector Risk, Industry Risk, Significant Sector and Position Concentration Risk, Liquidity Risk, Management Fee Risk, and Net Asset Value Risk defined as market pricing at either above (Premium), below (Discount) or at (Par) to the Exchange Trading Fund’s true Net Asset Value.

The program utilizes asset management restrictions in order to achieve favorable risk/reward performance results independent of the market’s strength or weakness.

The followings are the disciplines implemented:
(i) The portfolio can’t hold less than six Exchange Traded and/or Index Funds (ETFs), (ii) Account total cash position can’t exceed 30% of the portfolio value, (iii) Industry Exchange Traded and/or Index Fund (ETFs) cost can’t exceed 10% of portfolio cost, (iv) Industry Exchange Traded and/or Index Fund value can’t exceed 20% of portfolio value, (v) Sector Exchange Traded and/or Index Fund cost can’t exceed 30% of portfolio cost, and (vi) Sector Exchange Traded and/or Index Fund value can’t exceed 45% of portfolio value.

Throughout the tenure of the Total Asset Fund (TAF®) program, Global Asset Allocation models are either rebalanced quarterly, semi-annually or annually in order to achieve an optimal strategic asset allocation on the Efficient Frontier. This process of rebalancing a diversified global portfolio across a strategic combination of asset classes, in turn can potentially increase the investment overall returns while decreasing its volatility.

Lastly, periodic ongoing reviews are scheduled with all clients. This process includes the followings:
- Review of the entire portfolio as well as its underlying Exchange and/or Index Funds (ETFs) benchmarked each quarter against their respective Equity and Fixed Income indexes;
- Recalibrate each client’s asset allocation models as his or her life circumstances change, and;
- Present consolidated reporting that incorporates the Total Asset Fund (TAF®) portfolio with the entire holdings of the clients’ other investments disciplines.

(2) Total Asset Market (TAM®):

"TAM®" offers a disciplined, discretionary, and non-discretionary fee based mutual fund of funds program. It attempts to establish long-term Strategic Asset Allocation portfolios that are made out of a few select, best in class, on and off shore underlying mutual funds that are purchased at Net Asset Value (NAV). These funds are selected out of a total universe of approximately 200 mutual fund families that include unaffiliated load-waived and no-load funds (Although there are no upfront sales charges, other fees and expenses do apply).

The program endorses a top-down value discipline that seeks to identify globally undervalued Markets, Economic Sectors, Industries, Fixed Income, and Specific Securities in “Super Cycles” that sell at deep discounts to both their respective and historical intrinsic values. “Super Cycles” are defined as undervalued Economic Sectors, and Industries in the Global Economy that our firm believes are best positioned for “Long-Term Growth”. The select list due diligence process that aims to identify some of the world’s best underlying mutual funds begins with a rigorous screening process of the entire global universe of about 200 mutual fund families.

Next, qualitative and quantitative assessments are applied for deciding on the best in class underlying mutual funds that will end up making the Total Asset Market (TAM®) portfolio. This extensive due diligence process of filtering out a global universe of approximately 200 mutual fund families includes but is not limited to the followings: (i) Researching organizational ownership, (ii) Finding out portfolio management tenure, (iii) Understanding the investment process and its implementation, and (iv) Studying long and short-term performance results.

This process also attempts to evaluate risk/reward parameters assumed by the mutual fund managers as measured by their quantitative and/or Mathematical Calculations of Risk. The followings are some of the criteria studied when quantitative risk parameters are evaluated: Beta, Alpha, Standard Deviation, Sharpe Ratio, and R-Squared. In addition, the followings are some of the risk parameters researched when qualitative data is included: Market Risk, Economic Sector Risk, Industry Risk, Significant Sector and Position Concentration Risk, Liquidity Risk, and Management Fee Risk of expense ratios, 12b-1 charges, and early withdrawals.

Throughout the tenure of the Total Asset Market (TAM®) program, Global Asset Allocation models are either rebalanced quarterly, semi-annually or annually in order to achieve an optimal strategic asset allocation on the Efficient Frontier. This process of rebalancing a diversified global portfolio across a strategic combination of asset classes, in turn can potentially increase the overall investment returns while decreasing its volatility.

Last, periodic ongoing reviews are scheduled with all clients. This process includes the followings:
- Review of the entire portfolio as well as its underlying mutual funds benchmarked each quarter against their respective Equity and Fixed Income indexes;
- Recalibrate each client’s asset allocation models as his or her life circumstances change, and;
- Present consolidated reporting that incorporates the Total Asset Market (TAM®) portfolio with the entire holdings of the clients’ other investments disciplines.

(3) Market Value Securities (MVS®):

Market Value Securities (MVS®) offers a strategic, discretionary fee-based, long-term approach to Global Asset Allocation portfolios of small to large cap individual equities. The investment philosophy is founded on the belief that superior investment performance depends primarily on investing in the most attractive global Economic Sectors, and Sub-Industries based on supply and demand analysis.

The program endorses a top-down value discipline that seeks to identify globally undervalued Markets, Economic Sectors, Industries, and Specific Securities in “Super Cycles” that sell at deep discounts to both their respective and historical intrinsic values. “Super Cycles” are defined as undervalued Economic Sectors, and Industries in the Global Economy that our firm believes are best positioned for “Long-Term Growth”. For example, it is believed that currently “Super Cycles” are driven, first by the industrialization of China, and India, and second by an intense Global demand for digital Mobile Computing.

As these nations become more industrialized, and the world will consume respectively more energy, natural resources and mobile computing then these processes will potentially result in increased demand for Energy, Natural Resources, and Mobile Computing.

The first step in the process analyzes the relative attractiveness of global Economic Sectors, and their Sub-Industries. This is done first via in-depth analysis of supply and demand fundamentals, and growth rate projections. Second, global Economic Sectors and Sub-Industries are identified and selected. Third, individual small to large cap equities are researched.

At the end, a rigorous due diligence process is implemented for identifying and selecting individual equities that sell at deep discounts to their respective and historical intrinsic values. Intrinsic values are determined by using discounted cash flow and relative valuation models.

The fundamental analysis used to select the individual equities that end up making the Market Value Securities portfolio (MVS®) includes primarily low absolute and relative valuations such as price/earnings, price/book, price/cash, and debt to equity ratios. Other fundamental research followed is based on analysis of barriers to entry, market share, return on equity, growth projections, liquidity, market capitalization, free cash flow generation, debt structure, management tenure, quality of brand, and franchise value.

The program utilizes asset management restrictions in order to achieve favorable risk/reward performance results independent of the market’s strength or weakness. The followings are the disciplines implemented: (i) The portfolio can’t hold less than twenty stocks, (ii) Individual equity value can’t exceed 10% of portfolio value, (iii) Economic Sector holding can’t exceed 45% of portfolio value, (iv) Industry group holding can’t exceed 20% of portfolio value, (v) Account total cash position can’t exceed 30% of portfolio value, and (vi) The portfolio can’t hold less than six Economic Sectors.

The sell discipline for any Economic Sector, Sub-Industries, and Individual Securities is based on supply/demand and/or individual equity fundamentals. Our firm believes that prior to a “Super Cycle” peak companies will have massive capital expenditures associated with Growth, Mergers and Acquisitions activities. Eventually, at the height of a “Super Cycle” the sector and its individual equities will dominate the market from an earnings and market capitalization stand point. For example, Technology and Telecommunications grew to 40% of the S&P 500 Index in February of 2000, and during the Japanese Real Estate bubble properties of this country were valued at more than the entire combined U.S Real Estate market. When these signs are apparent, we will rotate out of the Economic Sectors, Sub-Industries, and their related Individual Equities in favor of new undervalued Economic Sectors and Sub-Industries in the world’s economy.

Lastly, periodic ongoing reviews are scheduled with all clients. This process includes the followings:
- Review of the entire portfolio as well as its underlying Economic Sectors, Sub-Industries and their respective Individual Equities benchmarked each quarter against their respective Equity and World Indexes;
- Recalibrate each client’s asset allocation models as his or her life circumstances change, and;
- Present consolidated reporting that incorporates the Market Value Securities (MVS®) portfolio with the entire holdings of the clients’ other investments disciplines.

(4) Total Asset Value (“TAV sm”):

Total Asset Value (TAV sm) investment program offers a unique platform that attempts to combine, on a discretionary fee basis, four of Tamar Securities, LLC's investment disciplines. These investment disciplines include: 1) Total Asset Market (TAM®), 2) Total Asset Fund (TAF®), 3) Market Value Securities (MVS®) and 4) Fixed Income Portfolio (FIP®). Total Asset Value (TAV sm) is a diluted version of the firm's following primary investment programs:

Total Asset Market (TAM®) offers a disciplined discretionary fee based mutual fund of funds program. This program, attempts to establish long-term strategic asset allocation portfolios that are made out of a few select, best in class, on and off shore underlying mutual funds that are purchased at Net Asset Value (NAV). These funds are selected out of a total universe of approximately 200 mutual fund families that include unaffiliated load waived and no load funds (Although there are no upfront sales charges, other fees and expenses do apply).

For more information, please refer to our Total Asset Market (TAM®) brochure.

Total Asset Fund (TAF®) offers a unique discretionary fee based managed money program that utilizes no load Exchange Traded Funds (ETFs) and/or Index Funds (Although there are no upfront sales charges, other fees and expenses do apply ) in order to structure Global Asset Allocation portfolios.

For more information, please refer to our Total Asset Fund (TAF®) brochure.

Market Value Securities (MVS®) offers a strategic discretionary fee-based, long-term approach to Global Asset Allocation portfolios of small to large capitalization individual equities. The investment philosophy is founded on the belief that superior investment performance depends primarily on investing in the most attractive Global Economic Sectors, and Sub-Industries based on supply and demand analysis.

For more information, please refer to our Market Value Securities (MVS®) brochure.

Fixed Income Portfolio (FIP®) offers a discretionary fee based value strategy that includes discounted taxable high yield bonds, double tax-exempt and taxable municipal bonds, preferred stocks, convertible bonds, and foreign- denominated bonds. The firm emphasizes discounted high grade debt securities over equity and alternative investments in order to achieve both constant annual income returns and fixed income price appreciation. The firm may use proceeds accumulated from bond redemptions and income generated in order to invest in equities.

For more information, please refer to our Fixed Income Portfolio (FIP®) brochure

Total Asset Value ("TAV sm") program is divided into two main investment disciplines; TAV (a) Aggressive, and TAV (ma) Moderately Aggressive. TAV (a) Aggressive strives to achieve an asset allocation model which includes 25% investment weighting in Market Value Securities (MVS®), 35% investment weighting in Total Asset Fund (TAF®), and 40% investment weighting in Total Asset Market (TAM®). On the other hand, TAV (ma) Moderately Aggressive strives to achieve an asset allocation model which includes 20% investment weighting in Market Value Securities (MVS®), 35% investment weighting in Total Asset Fund (TAF®) and 45% investment weighting in Total Asset Market (TAM®). TAMAR Securities, LLC's "Top Down" global value strategy determines its ongoing asset allocation weighting among its three underlining disciplines namely MVS, TAF and TAM in an attempt to achieve an optimum risk reward performance results.

Total Asset Value ("TAV sm") is also subdivided into the following three additional categories which include Fixed Income Portfolio (FIP®): (1) TAV (a) Aggressive (FIP®) that strives to achieve an asset allocation model which includes 17% investment weighting in Market Value Securities (MVS®), 25% investment weighting in Total Asset Fund (TAF®), 28% investment weighting in Total Asset Market (TAM®), and 30% investment weighting in Fixed Income Portfolio FIP. (2) TAV (ma) Moderately Aggressive (FIP®) that strives to achieve an asset allocation model which includes 13% investment weighting in Market Value Securities (MVS®), 20% investment weighting in Total Asset Fund (TAF), 27% investment weighting in Total Asset Market, and 40% investment weighting in Fixed Income Portfolio (FIP®), and (3) TAV (FIP®) that strives to achieve an asset allocation model which includes 30% investment weighting in either Market Value Securities (MVS®), Total Asset Fund (TAF®) or Total Asset Market (TAM®), and 70% investment weighting in Fixed Income Portfolio (FIP®). As with the previous two main Total Asset Value ("TAV sm") programs, TAMAR Securities, LLC's "Top Down" global value strategy determines its ongoing asset allocation weighting among its four underlining disciplines namely MVS, TAF, TAM, and FIP in an attempt to achieve an optimum risk reward performance results.

3. Independent Money Managers:
 

Independent Money Managers include but are not limited to a select group of Large Cap, Domestic and/or Global Value investment managers that meet stringent set of quantitative and qualitative criteria. Our firm attempts to connect its investors to a diverse array of the world’s leading independent investment advisers that assist in complementing our firm’s investment discipline. This investment strategy relies on identifying global equities that sell at deep discounts to their respective and historical intrinsic values which are poised for a “Super Cycle” long-term growth. Also, our firm recognizes the fact that many boutique investment managers do not necessarily distribute their investment services through brokerage firms because of the sheer funds these firms normally require to raise for any given investment. These managers instead, limit the amount of capital they attempt to raise and manage in order to out-perform their peers. Their philosophy emphasizes that in order to maintain absolute positive returns independent of the market’s strength or weakness, one need to focus on better researching, buying and executing smaller but uniquely positioned investment portfolio(s). Fortunately, for us, this antithetical approach to fund raising by Wall Street mega brokers could in turn open up additional elite array of new investment managers for the firm’s clients. This new select group of independent asset managers should fit in and better complement our firm’s investment strategies.

We endorse a platform of Independent Money Managers that seek to identify globally undervalued Markets, Economic Sectors, Industries, and Specific Securities in “Super Cycles” that sell at deep discounts to both their respective and historical intrinsic values. “Super Cycles” are defined as undervalued Economic Sectors, and Industries in the Global Economy that we believe are best positioned for “Long-Term Growth. The select list due diligence process of Independent Money Managers begins with a rigorous screening process of some of the world’s best money managers in order to fulfill a comprehensive strategic asset allocation model.

Next, qualitative and quantitative assessments are applied for deciding on the best in class Independent Money Managers. This extensive due diligence process of filtering out a universe of uniquely positioned money managers includes but is not limited to the followings: 1) Researching organizational ownership, 2) Finding out portfolio management tenure, 3) Understanding the investment process and its implementation, and 4) Studying long and short-term performance results. This process also attempts to evaluate risk/reward parameters assumed by money management firms as measured by their quantitative and/or Mathematical Calculations of Risk. The followings are some of the criteria studied when quantitative risk parameters are evaluated: Beta, Alpha, Standard Deviation, Sharpe Ratio, and R-Squared. In addition, the followings are some of the risk parameters researched when qualitative data is included: Market Risk, Economic Sector Risk, Industry Risk, Significant Sector and Position Concentration Risk, Liquidity Risk, and Management Fee Risk.

Lastly, periodic ongoing reviews are scheduled with all clients. This process includes the followings:
- Review of the entire portfolio as well as its underlying Economic Sectors, Sub-Industries and their respective Individual Equities benchmarked each quarter against their respective Equity and World Indexes;
- Recalibrate each client’s asset allocation models as his or her life circumstances change, and;
- Present consolidated reporting that incorporates the portfolios of the Independent Money Managers with the entire holdings of the clients’ other investments disciplines.

4. Financial Planning and Consulting:

Our firm will typically provide a variety of financial planning services, pursuant to a written Agreement, to individuals, families and other clients regarding the management of their financial resources based upon an analysis of client’s current situation, goals, and objectives. Generally, such financial planning services will involve preparing a financial plan or rendering a financial consultation for clients based on the client’s financial goals and objectives. This planning or consulting may encompass one or more of the following areas: investment planning, retirement planning, estate planning, charitable planning, education planning, and business planning.

The plan developed for or financial consultation rendered to the client will usually include general recommendations for a course of activity or specific actions to be taken by the clients. For example, recommendations may be made that the clients begin or revise investment programs, create or revise wills or trusts, obtain or revise insurance coverage, commence or alter retirement savings, or establish education or charitable giving programs. We may also refer clients to an accountant, attorney or other specialist. For planning engagements, we will provide a written summary of Client’s financial situation, observations, and recommendations. For consulting engagements, our firm may not provide a written summary. Plans or consultations are typically completed within six months of contract date, assuming all information and documents requested are provided promptly.

5. Alternative Investments:

Primary Investments primary strategies include: a Long/Short Technology hedge fund, a Private Equity Fund, and a Private Equity Real Estate Portfolio. Our firm endorses non-traditional investment strategies that have the potential to generate absolute returns independent of the market’s strength or weakness. For more information, please see Item 6 of this Firm Brochure.

6. Corporate Cash Program:

Corporate and Individual Cash Management seeks to identify taxable and tax free solutions on either a discretionary or non-discretionary basis for investments of cash management throughout the entire banking industry. The program searches for the best quality rated short –term Cash Management I nstruments that tend to offer maximum liquidity for an optimal risk reward yield to maturity. Some of the cash management financial instruments include the following: Institutional Tax Free and Taxable Money Market Funds, Treasury Notes, High Grade Commercial Paper, FDIC insured Certificate of Deposits, and short term high grade Tax Free Municipal Bonds that are exempt from Federal and/or Federal and State Income Taxes. These Tax Free instruments also include tax free Pre-refunded municipal Bonds that are also 100% escrowed to maturity with U.S Treasury Bonds.

Our firm emphasizes continuous and regular account supervision, researching, and monitoring. The due diligence process of selecting cash management financial instruments include but is not limited to the followings: (i) daily, in depth, independent qualitative and quantitative research of debt instruments regardless of size and ratings, (ii) Comparisons of all In-house research findings stacked against both the rating agencies’ opinion, and the street research reports, and (iii) professional Bid/Offer execution of bond trades, across all Fixed Income Desks on Wall Street. It is our firm’s motto to fight on behalf of our clients for best in class executions for all Cash Management products and/or short term Fixed Income instruments. In order to accomplish this optimal Bid/Offer pricing principal, our firm first establishes multiple relationships with Cash Management and Fixed Income desks around the country.

Second, all Cash Management offerings are shopped for best yields to maturity, and all bond purchase Offerings are Bid on. Last, when necessary, all bond sell Offerings are put out for a Bid from at least three bond desks on Wall Street. This process ensures best in class trade executions; and therefore, substantially improves Bid/Offer pricings for the firm’s clients. In many cases, and at odds with Wall Street practices, this Bid/Offer execution platform is duplicated for short term odd lot bond offerings where there is not enough liquidity; thereby, allowing us to Bid on bond Offerings at even deeper discounts then is warranted in a typical market place.

Worthy of mention is the fact that independently of with which financial institution Cash Management Instruments are purchased or on which bond desk a short term Fixed Income transaction took place, all Cash Management trades either settle with our firm’s preferred custodian; Schwab Institutional or maintained at a newly established custodian but still reported on the client’s Consolidated Quarterly Performance Reports.

The Cash Management process ends with periodic ongoing reviews. This process includes the followings: (i) Review of the entire client’s Cash Management portfolio benchmarked each quarter against its respective Short-Term Fixed Income Indexes, (ii) Recalibrate each client’s asset allocation model of cash and/or short-term fixed income instruments as his or her life circumstances change, and (iii) Present consolidated reporting that incorporates the portfolios of the Cash Management with the entire holdings of the clients’ other investments disciplines.

As mentioned above, we will emphasize continuous and regular account supervision to exercise discretion in investing in tax-free and taxable money market funds for individual, corporate and institutional accounts in accordance with the client written investment guidelines detailing conditions, restrictions and limitations as set by the client’s investment policy statement. Our firm, in exercising such discretion, shall have client’s authority to make purchases, sales, exchanges, investments and reinvestments that are deemed necessary in performing such discretion.

7. Professional Alliance Network:
 

Our firm’s Professional Alliance Network endorses, when appropriate, a secure environment in which the firm’s clients can find reputable professional services for transacting business activities such as Estate Planning, Insurance Purchases, and Mortgage Banking. Our firm employs a very selective process through which it identifies senior professionals that complement the overall financial needs of our clients. The Professional Alliance Network business model is based on an objective, and extensive due diligence process that attempts to select first class experienced professionals in their fields of expertise; and thereafter, to develop direct “firm to firm” relationships for the benefit of our clients.

Some of the stringent criteria senior professionals comply with include the followings: (i) Tenure and experience of the business professional, (ii) Extensive interviews of the lead professional and its staff members, (iii) In-depth investigations of all available referrals, (iv) Disclosure of organizational ownership (v) Orderly development of the business process and its implementation, (vi) Evaluating the personalities involved and their potential match with our firm’s clients, (vii) Allowing investigations of past complaints and pending unresolved legal matters, and (viii) Executing an independent, fully transparent, and competitive product purchases on best in class quality and price. When appropriate, financial products that are sold and generate disclosed-and-transparent commissions and/or fees will be shared by the professionals performing the task with our firm.

At the end of this process, ongoing reviews are scheduled with all clients utilizing the Professional Alliance Network. This process includes the followings: (i) Review of the analysis done, recommended and implemented, and how does it enhance the client’s overall financial planning, (ii) Recalibrate each client’s financial planning models as his or her life circumstances change, and (iii) Present consolidated reporting that incorporates the products of the Professional Alliance Network with the entire holdings of the clients’ other investments disciplines.

C. Explanation of whether (and, if so, how) we tailor our advisory services to the individual needs of clients, whether clients may impose restrictions on investing in certain securities or types of securities.

1. Individual Tailoring of Advice to Clients:

At our firm all the services provided first begin with an Investment Policy and/or in depth analysis of each client’s unique personal criteria that includes their goals, needs, risk tolerance, and income needs versus growth, tax, legal issues, liquidity requirements, and investment objectives and guidelines.

We also use Global Asset Allocation Models that focus on preservation of capital, long-term asset growth, superior performance in both rising and falling market cycles, and absolute returns independent of the market’s strength or weakness are implemented.

Helping us to implement our individualized investment findings for our clients are the following programs: Wrap Account Portfolio Management of Fixed Income Portfolio (FIP®), exchange-traded fund of funds (TAF®), mutual fund of funds (TAM®), in-house value money manager (MVS®), Independent Money Managers (Large Cap Value- Brandes Global and/or International, Large Cap Value- Cambiar and Large Cap Value- Davis), Corporate Cash Program, and where appropriate Alternative Investments for qualified investors. Additionally, we offer Financial Planning, Consulting, and services of Professional Alliance Network.

2. Ability of Clients to Impose Restrictions on Investing in Certain Securities or Types of Securities:

We usually do not allow clients to impose restrictions on investing in certain securities or types of securities due to the level of difficulty this would entail in managing their portfolio. In the rare instance that we would allow restrictions, it would be limited to a very few securities in the Wrap Fee Program where issues of either social or environmental conflicts might arise. Such restrictions if implemented will be signed and entered in writing prior to any investment implementation. It is important to note that we do not utilize any other programs for managing our clients’ assets.

D. Participation in wrap fee programs.

We offer wrap fee programs as further described in Part 2A, Appendix 1 (the Wrap Fee Program Brochures) named: Total Asset Fund (“TAF®”), Total Asset Market® (“TAM®”), Market Value Securities (“MVS®”), Total Asset Value (TAV sm) and Fixed Income Portfolios (FIP®) of our Brochures. Our wrap fee and non-wrap fee accounts are managed on an individualized basis according to the client’s investment objectives, financial goals, risk tolerance, and income needs versus growth, tax, legal issues, liquidity requirements, and investment guidelines. We do not manage wrap fee accounts in a different fashion than non-wrap fee accounts. As further described in our Wrap Fee Program Brochures, we receive a portion of the wrap fee for our Independent Money Managers, Alternative Investment, Corporate Cash Management, Financial, and Professional Alliance Network services.

E. Disclosure of the amount of client assets we manage on a discretionary basis and the amount of client assets we manage on a non-discretionary basis.

We manage $141,604,875 on a discretionary basis and $65,078,895 on a non-discretionary basis as of 12/31/2015.