A. Description of the Advisory Firm
Summit Investment Advisory Services, Inc. also doing business as Summit Investment
Advisors (hereinafter collectively “SIAS” or the “Advisor”) is a limited liability company
(“LLC”) organized in the State of Minnesota formed in September 2013. SIAS is a wholly-
owned subsidiary of Summit Advisors HoldCo, LLC, which is in turn primarily owned
by Summit Advisors, Inc. The principal owner of the Summit Advisors, Inc. is Sean
McDermott.
B. Types of Advisory Services
SIAS offers the following services to advisory clients:
Portfolio Management Services
SIAS offers ongoing portfolio management services based on the individual goals,
objectives, time horizon, and risk tolerance of each client. SIAS creates an Investment
Policy Statement for each client, which outlines the client’s current situation (income, tax
levels, and risk tolerance levels).
Portfolio management services include, but are not limited to, the following:
• Investment strategy • Personal investment policy
• Asset allocation • Asset selection
• Risk tolerance • Regular portfolio monitoring
SIAS evaluates the current investments of each client with respect to their risk tolerance
levels and time horizon. Risk tolerance levels are documented in the Investment Policy
Statement, which is given to each client.
SIAS seeks to provide investment decisions in accordance with the fiduciary duties owed
to its accounts and without consideration of SIAS’s economic, investment or other
financial interests. To meet its fiduciary obligations, SIAS attempts to avoid, among other
things, investment or trading practices that systematically advantage or disadvantage
certain client portfolios, and, accordingly, SIAS’s policy is to seek fair and equitable
allocation of investment opportunities/transactions among its clients to avoid favoring
one client over another over time. It is SIAS’s policy to allocate investment opportunities
and transactions it identifies as being appropriate and prudent, including initial public
offerings (“IPOs”) and other investment opportunities that might have a limited supply,
among its clients on a fair and equitable basis over time.
LPL Financial Sponsored Advisory Programs
SIAS may provide advisory services through certain programs sponsored by LPL
Financial Corporation (LPL), a registered investment advisor and broker-dealer. LPL
charges fees for these sponsored programs that are in addition to the SIAS fee. Below is a
brief description of each LPL advisory program available to SIAS. For more information
regarding the LPL programs, including the fees that apply and the types of investments
available in the programs, please refer to the applicable LPL client agreement.
Advisory Services
Optimum Market Portfolios Program (OMP)
OMP offers clients the ability to participate in a professionally managed asset allocation
program using Optimum Funds Class I shares. Under OMP, client will authorize LPL on
a discretionary basis to purchase and sell Optimum Funds pursuant to investment
objectives chosen by the client. Advisor will assist the client in determining the suitability
of OMP for the client and assist the client in setting an appropriate investment objective.
Advisor will have discretion to select a mutual fund asset allocation portfolio designed by
LPL consistent with the client’s investment objective. LPL will have discretion to purchase
and sell Optimum Funds pursuant to the portfolio selected for the client. LPL will also
have authority to rebalance the account.
Personal Wealth Portfolios Program (PWP)
PWP offers clients an asset management account using asset allocation model portfolios
designed by LPL. Advisor will have discretion for selecting the asset allocation model
portfolio based on client’s investment objective. Advisor will also have discretion for
selecting third party money managers (PWP Advisors) or mutual funds within each asset
class of the model portfolio. LPL will act as the overlay portfolio manager on all PWP
accounts and will be authorized to purchase
and sell on a discretionary basis mutual funds
and equity and fixed income securities.
Model Wealth Portfolios Program (MWP)
MWP offers clients a professionally managed mutual fund asset allocation program. SIAS
will obtain the necessary financial data from the client, assist the client in determining the
suitability of the MWP program and assist the client in setting an appropriate investment
objective. The Advisor will initiate the steps necessary to open an MWP account and have
discretion to select a model portfolio designed by LPL’s Research Department consistent
with the client’s stated investment objective. LPL’s Research Department is responsible
for selecting the mutual funds within a model portfolio and for making changes to the
mutual funds selected.
The client will authorize LPL to act on a discretionary basis to purchase and sell mutual
funds (including in certain circumstances exchange traded funds) and to liquidate
previously purchased securities. The client will also authorize LPL to effect rebalancing
for MWP accounts.
In the future, the MWP program may make available model portfolios designed by
strategists other than LPL’s Research Department. If such models are made available,
Advisor will have discretion to choose among the available models designed by LPL and
outside strategists.
Manager Access Select Program
Manager Access Select provides clients access to the investment advisory services of
professional portfolio management firms for the individual management of client
accounts. Advisor will assist client in identifying a third party portfolio manager
(Portfolio Manager) from a list of Portfolio Managers made available by LPL. The Portfolio
Manager manages client’s assets on a discretionary basis. Advisor will provide initial and
ongoing assistance regarding the Portfolio Manager selection process.
Financial Planning
Financial plans and financial planning may include but are not limited to: investment
planning; life insurance; tax concerns; retirement planning; college planning; and
debt/credit planning.
Services Limited to Specific Types of Investments
SIAS generally limits its investment advice to mutual funds, equities, fixed income
securities, ETFs (including ETFs in the gold and precious metal sectors), real estate funds
(including REITs), non-U.S. securities, commodities, hedge funds, insurance products
including annuities and private placements, but primarily recommends stock and bond
mutual funds and ETF's. SIAS may use other securities as well to help diversify a portfolio
when applicable.
C. Client Tailored Services and Client Imposed Restrictions
SIAS offers the same suite of services to all of its clients. However, specific client
investment strategies and their implementation are dependent upon the client Investment
Policy Statement which outlines each client’s current situation (income, tax levels, and
risk tolerance levels). Clients may not impose restrictions in investing in certain securities
or types of securities in accordance with their values or beliefs.
D. Wrap Fee Programs
SIAS participates in wrap fee programs, which are investment programs wherein the
investor pays one stated fee that includes management fees, transaction costs, fund
expenses, and any other administrative fees. SIAS manages the investments in the wrap
fee program, but does not manage those wrap fee accounts any differently than non-wrap
fee accounts. A portion of the fees paid to the wrap account program will be given to SIAS
as a management fee.
SIAS participates in the following LPL Financial sponsored wrap fee programs: Model
Wealth Portfolios (MWP), Optimum Market Portfolios Program (OMP), Personal Wealth
Portfolios (PWP) and Manager Access Select Program.
SIAS sponsors the following wrap fee program: Summit Investment Advisory Services
Wrap Fee Program.
E. Assets Under Management
SIAS has the following assets under management:
Discretionary Amounts: Non-discretionary Amounts: Date Calculated:
$452,959024 $3,010,036 12/31/2022