Item 4 - Services, Fees and Compensation

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 long-term Global Asset Allocation portfolios.

(i)TAF® Program:


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 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 “LongTerm 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 (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 general asset management guidelines in order to attempt to achieve favorable risk/reward performance results independent of the market’s strength or weakness. The following are the guidelines implemented: (i) The portfolio, normally will not hold less than six Exchange Traded and/or Index Funds (ETFs), (ii) The discipline’s total cash position normally will not exceed 30% of the portfolio value, and (iii) Sector Exchange Traded and/or Index Fund value normally will not exceed 45% of the portfolio value. Throughout the tenure of the Total Asset Fund (TAF®) program, Global Asset Allocation models are either rebalanced quarterly, semi-annually or annually. 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.

In general, “Top Down” global value strategy determines its ongoing asset allocation weighting among its underlying disciplines and asset classes. The investment process is gradual, fundamental in nature, and occasionally, technically driven. Implementing fundamental and technical analysis to uncover oversold market conditions can lead to excessive cash balances in the interim.

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.

TAF® Schedule:

All Equity discretionary money managed programs which include Total Asset Fund (TAF®) will adhere to the following pricing schedule:

  Assets Under Management   Annual Net Fee Assessed
  First $500,000   2.25%
  Next $500,000   1.75%
  Over $1,000,000   1.25%

*Our firm’s fees are generally not negotiable. Further, our firm’s fees are billed on a pro-rata annualized basis quarterly in advance based on the value of your account on the last day of the previous quarter.

For complete and updated information about our Investment programs and services, please refer to the Firm ADV Part 2A - Firm Brochure: