ITEM 5 - ADDITIONAL COMPENSATION ................................................................................................... iii
ITEM 6 - SUPERVISION ............................................................................................................................. iv
Darren S. Northam ............................................................................................................................. v
ITEM 2 - EDUCATIONAL BACKGROUND AND BUSINESS EXPERIENCE ...................................................... v
Professional Designations .................................................................................................................... v
ITEM 3 - DISCIPLINARY INFORMATION .................................................................................................... vi
ITEM 5 - ADDITIONAL COMPENSATION ................................................................................................... vi
ITEM 6 - SUPERVISION ............................................................................................................................ vii
PRIVACY INFORMATION .................................................................................................................... A
Clay Northam Wealth Management Brochure Revised October 5, 2023 6
Description of Advisory Firm
Clay Northam Wealth Management, LLC (“CNWM,” “we,” “our,” or “us”) is a privately owned limited
liability company registered as an investment adviser with the U.S. Securities and Exchange Commission.
Brian Clay CFP, Inc. and Darren Northam CFP, Inc. are the Managing Partners of CNWM.
Fiduciary Duty
Registered investment advisers are considered fiduciaries under federal law. Our fiduciary duty carries
with it an obligation to act in the best interest of our clients pursuant to a relationship of trust and
confidence. It encompasses a
duty of care and a
duty of loyalty.
Duty of Care
The duty of care includes, among other things,
1. the duty to provide advice that is in the best interest of the client;
2. the duty to seek best execution of a client’s transactions where the adviser has the
responsibility to select broker-dealers to execute client trades; and
3. the duty to provide advice and monitoring over the course of the relationship.
The duty to provide advice suitable to each client based on a reasonable understanding of the client’s
objectives is a critical component of the duty of care. Providing suitable advice includes making a
reasonable inquiry into the client’s financial situation, investment experience, and financial goals and
then updating this information as necessary throughout the course of the relationship to reflect the
client’s changing objectives over time and adjusting the advice we provide to reflect any changed
circumstances.
When CNWM has the responsibility to select broker-dealers to execute client trades in discretionary
accounts, we seek to trade such that the client’s total cost or proceeds in each transaction are the most
favorable under the circumstances. In doing so, we consider the full range and quality of a broker’s
services and so the determinative factor is not necessarily the lowest possible commission cost but
whether the transaction represents the best qualitative execution. Moreover, we periodically and
systematically evaluate the execution we receive on behalf of our clients.
Our duty of care includes an obligation to provide advice and monitoring at a frequency that is in the
best interest of the client, taking into account the scope of the agreed relationship. This scope is
indicated by the duration and nature of the services as outlined in each client’s advisory arrangement
and extends to all personalized advice provided to clients.
Duty of Loyalty
CNWM adheres to a duty of loyalty where we seek to serve the best interests of our clients and never
subordinate the interests of our clients to our own. Simply put, CNWM cannot place its own interests
ahead of the interests of our clients. In observance of this duty, we must make full and fair disclosure to
clients of all material facts relating to the advisory relationship. Further, we also seek to eliminate or at
least expose through full and fair disclosure all conflicts of interest which might incline CNWM,
consciously or unconsciously, to render advice that is not disinterested. We believe that in order for
disclosure to be full and fair, it should be sufficiently specific so that each client is able to understand the
Clay Northam Wealth Management Brochure Revised October 5, 2023 7
material fact or conflict of interest and make an informed decision whether to provide consent.
Consequently, we provide this ADV 2A brochure to all prospective clients at or before entering into a
contract so that they can use the information within to decide whether or not to enter into an advisory
relationship.
Advisory Services Offered
CNWM offers the following services to advisory clients:
Investment Management Services
CNWM offers investment management services through which Brian Clay and Darren Northam direct
and manage client assets. These services include the design, implementation, and monitoring of client
accounts on a discretionary basis. We primarily utilize mutual funds, exchange traded funds (“ETFs”),
and individual equity and fixed income securities when making investment selections in client accounts.
We also occasionally transact in non-traded real estate investment trusts (REITs). CNWM also offers
advice regarding additional types of investments if we believe they are appropriate to address the
individual needs, goals, and objectives of the client or in response to client inquiry. We may offer
investment advice on any investment held by the client at the
start of the advisory relationship.
CNWM obtains financial data from the client and tailors the investment strategy to each client’s specific
needs. Each portfolio will be initially designed in an effort to meet a particular investment goal, which
our Founding Principals believe to be suitable for the client’s circumstances. Once the portfolio is
designed, a Founding Principal will review the portfolio at least quarterly and rebalance, as he deems
necessary, based on the client’s individual needs, stated goals, and objectives.
Clients have the opportunity to place reasonable restrictions on the types of investments to be held in
the portfolio, such as when a client needs to keep a minimum level of cash in the account or does not
want us to buy or sell certain specific securities or security types in the account. We reserve the right to
not accept and/or terminate management of a client’s account if we feel that the client-imposed
restrictions would limit or prevent us from meeting or maintaining the client’s investment strategy.
Financial Planning Services
CNWM provides complimentary financial planning services as part of our overall investment
management services at a client’s request or for a separate fee to non-investment management clients,
as described below. Plan results are delivered verbally or in writing at the discretion of CNWM’s
principals. In general, we seek to address all or part of the following areas in the financial plan:
• Goals and objectives
• Net worth
• Cash flow planning
• Tax planning review
• College funding
• Risk management and insurance planning
• Retirement planning
• Investment planning
• Estate planning
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CNWM gathers information for our financial planning services through personal interviews and
document requests. Information gathered generally includes a client's current financial status, future life
goals, and attitudes towards risk. Related documents supplied by the client are carefully reviewed by
CNWM, and a plan is prepared. Should a client choose to implement the recommendations contained in
the plan, CNWM suggests the client work closely with his/her attorney, accountant, insurance agent,
mortgage broker, and/or investment adviser. Implementation of financial plan recommendations is
entirely at the client's discretion. Clients may choose but are not required to have CNWM assist with
financial plan implementation, including investment management services. Clients that choose to utilize
CNWM for financial plan implementation should keep us informed of any changes to their financial
situation so that we can determine if corresponding adjustments to the financial plan are necessary.
Sub‐Advisory Services
Clients can also access the investment management services of unaffiliated third party money managers
through a sub-advisory program offered through Schwab’s Managed Accounts Select/Access Platform.
These services are offered as separately managed accounts in CNWM’s investment strategies.
Limitations on Investments
In some circumstances, CNWM’s advice may be limited to certain types of securities.
Limitation by Plan Sponsor/Employer
In the event CNWM is managing assets within a retirement plan such as 401(k), 403(b), QRP or other
employer plan, CNWM is limited to those investment providers and investment options chosen by the
plan administrator. Similarly, when we provide services to participants in an employer-sponsored plan,
the participant may be limited to investing in securities included in the plan’s investment options.
Therefore, CNWM can only select investments to the client from among the available options and will
not invest the client’s account in other securities, even if there may be more suitable options elsewhere.
Mutual Fund Limitations
Generally, CNWM limits mutual fund selections to no load funds or load-waived equivalents.
Limitation by Client
CNWM may also limit advice based on certain client-imposed restrictions. For more information about
the restrictions clients can put on their accounts, see Tailored Services and Client Imposed Restrictions
in this Item below.
Non-Managed Assets
At its discretion, CNWM may offer securities trading activities for cash and securities in a client’s non-
managed account, acting as an intermediary between the client and the custodian of the non-managed
account. We do not generally provide investment advice regarding a client’s non-managed assets or
provide opinions as to the merits of any securities in non-managed accounts. We also do not make any
judgments as to the appropriateness of assumed risk or suitability of any non-managed investment
given the client’s situation. At our discretion, CNWM may offer this service in consideration of the
client’s other accounts that we manage.
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Tailored Services and Client Imposed Restrictions
CNWM makes individual investment decisions for clients based on a financial review and plan to help
clients formulate realistic investment objectives. It is the client’s responsibility to keep us informed of
any changes to his/her investment objectives. In limited circumstances, clients may request restrictions
on the account, such as when a client needs to keep a minimum level of cash in the account or does not
want CNWM to buy or sell specific securities or security types in the account. CNWM reserves the right
to not accept and/or terminate management of a client’s account if we feel that the client-imposed
restrictions would limit or prevent us from meeting or maintaining our overall investment strategy for
the client.
Wrap Fee Programs
CNWM previously provide asset management services to clients under the Clay Northam Wealth
Management, LLC Wrap Fee Program. We no longer provide services to this or any other wrap fee
program.
Assets Under Management
CNWM manages client assets in discretionary accounts on a continuous and regular basis. As of
December 31, 2022, CNWM had $197,909,650 in assets under our management.