San Mateo, CA

Question 1

How is SEIA different?

Answer

Signature Estate & Investment Advisors, LLC (SEIA) is a Registered Investment Advisory firm offering Investment Management and Financial Planning Services tailored to the unique needs of affluent individuals, institutions, and corporations. We provide an advisory partnership focused on helping achieve long-term financial goals and objectives.

Given that we are held to a fiduciary standard, we keep your best interests always at heart. Our team of experienced professionals address your unique goals and objectives with a customized investment, estate, or financial plan. Our commitment to successful wealth management is built upon deeply-rooted and meaningful client relationships.

Question 2

What is SEIA’s approach to investment management?

Answer

SEIA’s six-step asset management process helps ensure that your financial goals and objectives are met:

Determine investor needs
Assess risk tolerance
Review asset allocation
Implement strategic plan
Rebalance and monitor portfolio
Comprehensively report

Strategic Macro Allocation
After calculating the range of probabilities for a specific risk tolerance, SEIA can determine which combination of assets might provide your best risk-adjusted return. Results are then analyzed to create an “Efficient Frontier” curve that highlights the appropriate mix of assets at a given level of risk. Strategic Macro Allocation provides guidelines to “buying low and selling high”* through rebalancing portfolio assets that have gone up in value against assets that have either retraced or stagnated, helping bring the portfolio back to the optimal allocation.

Tactical Micro Allocation
By employing Strategic Macro Allocation and Tactical Micro Allocation strategies, SEIA can potentially capture additional value by managing allocation shifts within a business cycle. These strategies also help prudent investors take advantage of shorter-term tactical trends that may favor various asset classes, sectors and industries.

*Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss. Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. They are methods used to help manage investment risk. Rebalancing can entail transaction costs and tax consequences that should be considered when determining a rebalancing strategy.

Question 3

What can I expect as a client of SEIA?

Answer

SEIA combines its foundation in investment management and financial planning with advanced advisory services to create a truly customized client experience. Our holistic wealth management process includes the oversight and stewardship of all elements of your financial life. Along with our commitment to navigate the potential growth of your wealth, we help protect and preserve your estate by managing risk, developing efficient tax strategies, and planning for the distribution of your legacy.

Question 4

What is a fiduciary financial advisor?

Answer

A fiduciary must put your best interest above their own. A financial advisor who is a fiduciary has an ethical duty to recommend the best investments for you. Fiduciaries have a bond of trust with clients and must avoid conflicts of interest. If your financial advisor does not have a fiduciary duty to you, they may be able to recommend investments or products that pay them a bigger commission over ones that would be the best fit for you, which could cost you more.

Question 5

Why do I need a financial advisor?

Answer

Financial advisors are professionals who advise their clients on decisions related to wealth management and personal finance. This can include assessing your current financial situation and goals, developing a comprehensive plan that addresses your major areas of concern, providing ongoing advice as unexpected financial issues arise, setting up investment accounts and investing funds for you, and much more.

Financial decisions can often be time consuming, overwhelming, and emotionally taxing. Having an unbiased financial advisor to assist with these decisions can be extremely valuable.

Question 6

What is non-discretionary investment management?

Answer

Signature Elite is a non-discretionary custom investment management platform designed for the high net worth individual. We incorporate a holistic investment management process collaborating with your tax, legal and other professionals to help meet your overall wealth management needs. The combination of Strategic Macro and Tactical Micro Allocation strategies with a third Dynamic Allocation Strategy creates your personalized Core-Satellite Portfolio.

Special Situations

Diversification around Concentrated Positions
Tax-Loss Harvesting Opportunities
Strategically Unwind Concentrated Positions
Consideration of Legacy Assets

Portfolio Customization

Individual Stocks and Bonds
Illiquid and Liquid Alternative Investments
Access to Institutional Class Investments
Laddered and Barbell Bond Strategies

Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. They are methods used to help manage investment risk.

Question 7

What is the Private Client Group (PCG)?

Answer

Our private client group is tailored to the needs of affluent clients who entrust SEIA with managing over $5 million of assets. As part of the SEIA Private Client Group, clients have special access to customized financial solutions, services, and events.

Question 8

What is the Signature Allocation Series (SAS)?

Answer

Signature Allocation Series (SAS) is a discretionary model platform engineered for various time-horizons and objectives to meet a client’s personalized investment needs. Using an open-architecture platform, these models incorporate multiple asset classes, investment styles, and investment vehicles.

The investment strategy employs both Strategic Macro Allocation and Tactical Micro Allocation capturing opportunities within the business cycles.

The portfolio is professionally monitored on a continuous basis. SEIA will automatically rebalance/reallocate investments in accordance with the Investment Policy Statement.

Asset allocation and portfolio diversification cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. They are methods used to help manage investment risk. Rebalancing can entail transaction costs and tax consequences that should be considered when determining a rebalancing strategy.

Question 9

What is the Signature Fund For Giving (SFFG)?

Answer

Philanthropy is a long-standing pillar for the employees of SEIA. In our mutual recognition of the importance of giving back, we came together as a firm to pool our resources in support of children’s causes. The SEIA Signature Fund for Giving helps support local youth who represent tomorrow’s leaders and innovators.

Question 10

Does SEIA offer socially responsible investment strategies?

Answer

SEIA understands that sound investment advice and allocating investments based on one’s values are not mutually exclusive. Together, values-based investing can achieve both goals. Investors can ‘do good’ with impactful investments to promote sustainable conditions achievable through three main tenets—the Environment, the Society, and Corporate Governance (ESG). Your values can dictate your portfolio, and SEIA can help guide you through the process.

Question 11

What are the key types of investments?

Answer

There are many types of investments, but some of the most popular are:

Stocks: an investment in a specific company
Bonds: a loan to a company or government
Mutual funds: a pool of money from many investors that employ a professional manager to invest across a large number of investments all at once
Exchange-traded funds (ETFs): Similar to a mutual fund in that it’s a pool of money from many investors that invests across a large number of investments all at once, but trades on an exchange and can be purchased or sold throughout the day

Question 12

What are the key components of financial planning?

Answer

There are many elements of a financial plan:

Financial goals: What you want to accomplish in the short, medium, and long-term
Net worth statement: An itemized list of your assets and your debts
Budget and cash flow planning: An assessment of where your money is going over the course of time
Retirement plan: Understanding your retirement goals and assessing your readiness to retire
Emergency funds: Making sure you set aside enough cash to cover essential living expenses in the event of the unexpected
Insurance coverage: Important to protect in the event of an unexpected event. This can include health, disability, auto, homeowners, renters, and life insurance
Estate plan: This can include a will, trust, healthcare power of attorney, and financial power of attorney

Question 13

What are the key steps in risk management?

Answer

Here are five distinct methods, or strategies of dealing with risk:

1. Risk avoidance: Avoid those high risk activities in your life that, should they happen, would be catastrophic to your personal financial plan. Examples of these activities would be speeding, dangerous sports, smoking, etc.

2. Risk retention: To personally assume the risk, in essence self-insuring. In this case the risk must not impose a substantial financial or non-financial threat to you. For example, “I do not insure my life because I have no debts or obligations,” or “I forego long-term care insurance because I believe I have enough in financial assets and cash flow to pay out-of-pocket for this type of medical care.”

3. Risk reduction: There are two sub strategies to this method: Loss Prevention and Control, for example: use of fire and burglar alarms, air bags, and smoking and weight control programs. Risk reduction can also involve minimizing risk by using an insurance company that uses the law of large numbers to maintain their solvency.

4. Risk sharing: In this strategy one assumes a limited degree of manageable risk and transfers the balance of the risk to one or more organizations. For example, I choose a high deductible health plan that would require me to pay the first $5,000 of any major health bills, but would then pick up 100% of the cost after that. This risk sharing agreement allows me to cut my monthly insurance premiums by 40%. I can cover the $5,000 in risk and hope that over the long run my reduction in premiums justifies the risk of having to pay $5,000 out-of-pocket.

5. Risk transfer: I transfer risk completely to a third party in consideration of an insurance premium. Life, disability, and liability risks are often dealt with in this way.

Question 14

What’s the difference between a will and estate plan?

Answer

Along with a trust, healthcare power of attorney, and financial power of attorney, a will is an important part of an estate plan. A will outlines your wishes for the assets you own at your passing. It allows you to name the people you’d like to leave something to upon your death. In most states, without a will, your assets will follow a process called probate, in which the state determines how your assets are distributed based on state law. A will allows your assets to skip the probate process and be distributed as you wish.

Question 15

How do you get paid?

Answer

SEIA’s payment incentives are aligned with the success of our clients: We are paid a percentage of assets under management, meaning that the better your investment returns are, the larger your portfolio becomes – and thus our compensation increases accordingly. If, on the other hand, the market suffers, or your account declines in value, our compensation decreases in tandem, too. Our incentives are always aligned with yours. Helping you succeed is always in our best interest, too.

Question 16

What are your qualifications?

Answer

SEIA employs over 140 people who not only advise clients and manage portfolios, but also those who provide essential functions in compliance, trading, operations, marketing, and administrative support, as well as the multitude of other roles that are necessary to provide a full array of services to our clients.

Within that universe of employees, though, are people who have significant experience, expertise, and education to help enable our clients to succeed. SEIA employees offer the following qualifications:

Current SEIA employee qualifications (number of employees holding each credential):

• Chartered Financial Analyst^® (CFA^®) – 11

• CERTIFIED FINANCIAL PLANNER^TM (CFP^®) – 39

• Master of Business Administration (MBA) – 9

• Master of Science (MS) – 4

• Accredited Investment Fiduciary^® (AIF^®) – 27

• Chartered Mutual Fund Counselor^SM (CMFC^®) – 13

These designations often may involve years of extensive studying and classwork, require passing rigorous exams and may be accompanied by requirements to have demonstrated work experience. And some of our employees may have more than one of these designations. And that is in addition to years of experience in their roles of advising clients or managing portfolios.

For details on the professional designations displayed herein, including descriptions, minimum requirements, and ongoing education requirements, please visit seia.com/disclosures

Question 17

What investment benchmarks do you use?

Answer

Reflecting the diverse array of our clients’ investment objectives, goals, and other parameters, our portfolios are often highly customized to each client. As such, we don’t try to measure performance against a single benchmark that may not fit how your portfolio is invested. Instead, there are many different indices that cover various segments of the market, including those that are broad or narrow, focus on just the U.S. or are global in scope, include mostly conservative or riskier instruments, etc.

Since your portfolio may be a composite of different styles and strategies, our benchmark index for your portfolio would reflect the type of securities in which you are invested. The question any benchmark decision must answer is, would you have been better off investing in that index? If the index in question holds securities you wouldn’t own, it isn’t the right benchmark to use for your portfolio.

However, for discretionary accounts, we use a blended benchmark consisting of the Russell 3000 and MSCI ACWI ex-US for equity accounts, and the Bloomberg Barclays Aggregate Bond and the Bloomberg Barclays High Yield for fixed income accounts.

Indices cannot be invested in directly, are not managed, and do not incur management fees, costs, and expenses.

San Mateo, CA

Brian D. Holmes

Gary K. Liska

Investment Management

Comprehensive Financial Planning

Investment Solutions

Risk Management

Tax Planning

Trust & Estate Planning

Business Advisory Services

Wealth Counseling