Strategic Advisory Services, L.L.C. is a registered investment adviser based in Houston, Texas. Our
firm is organized as a limited liability company under the laws of the State of Texas. We have been
providing investment advisory services since 1986. Richard A. Grbac, our Managing Member, began
his career in the financial services industry in 1971. Currently, we provide wealth management
services by incorporating asset allocation through the selection and monitoring of other advisers or
money managers and other aggregated services.
As used in this brochure, the words "we", "our" and "us" refer to Strategic Advisory Services, L.L.C.
and the words "you", "your" and "client" refer to you as either a client or prospective client of our firm.
Also, you may see the term Associated Person or Investment Adviser Representative throughout this
Brochure. As used in this Brochure, our Associated Persons or Investment Adviser Representatives
are our firm's officers, employees, and all individuals providing investment advice on behalf of our firm.
Advisory Services
The following paragraphs describe our services. Please refer to the description of each investment
advisory service listed below for information on how we tailor our advisory services to your individual
needs.
Asset Management Services
Strategic Advisory Services offers asset management services, which involves our firm providing you
with continuous and ongoing supervision over your specified accounts.
You must appoint our firm as your investment adviser of record on specified accounts (collectively, the
“Account”). The Account consists only of separate account(s) held by qualified custodian(s) under your
name. The qualified custodians maintain physical custody of all funds and securities of the Account, and
you retain all rights of ownership (e.g., right to withdraw securities or cash, exercise or delegate proxy
voting and receive transaction confirmations) of the Account.
The Account is managed by us based on your financial situation, investment objectives and risk
tolerance. We actively monitor the Account and provide advice regarding buying, selling, reinvesting or
holding securities, cash or other investments of the Account.
We will need to obtain certain information from you to determine your financial situation and investment
objectives. You will be responsible for notifying us of any updates regarding your financial situation, risk
tolerance or investment objective and whether you wish to impose or modify existing investment
restrictions; however we will contact you at least annually to discuss any changes or updates regarding
your financial situation, risk tolerance or investment objectives. We are always reasonably available to
consult with you relative to the status of your Account. You have the ability to impose reasonable
restrictions on the management of your accounts, including the ability to instruct us not to purchase
certain securities.
It is important that you understand that we manage investments for other clients and may give them
advice or take actions for them or for our personal accounts that is different from the advice we provide
to you or actions taken for you. We are not obligated to buy, sell or recommend to you any security or
other investment that we may buy, sell or recommend for any other clients or for our own accounts.
Conflicts may arise in the allocation of investment opportunities among accounts that we manage. We
strive to allocate investment opportunities believed to be appropriate for your account(s) and other
accounts advised by our firm among such accounts equitably and consistent with the best interests of all
accounts involved. However, there can be no assurance that a particular investment opportunity that
comes to our attention will be allocated in any particular manner. If we obtain material, non-public
information about a security or its issuer that we may not lawfully use or disclose, we have absolutely no
obligation to disclose the information to any client or use it for any client’s benefit.
Selection of Other Advisers and Asset Allocation Services
As part of our investment advisory services, we may recommend that you use the services of various
third-party money managers or investment advisers ("TPMM"), including, but not limited to, SEI
Investments to manage your entire, or a portion of your, investment portfolio. After gathering
information about your financial situation and objectives, we will recommend that you engage a specific
TPMM or investment program. Factors that we take into consideration when making our
recommendation(s) include, but are not limited to, the following: the TPMM's performance, methods of
analysis, fees, your financial needs, investment goals, risk tolerance, and investment objectives. We
will periodically monitor the TPMM(s)' performance to ensure its management and investment style
remains aligned with your investment goals and objectives.
The TPMM(s) will actively manage your portfolio and will assume discretionary investment authority
over your account. We will assume discretionary authority to hire and fire TPMM(s) and/or reallocate
your assets to other TPMM(s) where we deem such action appropriate. In most cases, we will
customize the Asset Allocation for you, by adding several different asset classes that will be different
from SEI's Asset Allocation Models.
The fees you pay to the TPMM are established and payable in accordance with the Form ADV Part 2
or other equivalent disclosure document provided by each TPMM selected and these fees may or may
not be negotiable. Such compensation may differ depending upon the individual agreement our firm
has with each TPMM.
Advisory fees charged by TPMMs are separate and apart from our advisory fees (which are set forth in
Item 5). Assets managed by TPMMs will be included in calculating our advisory fee, which is based on
the fee schedule set forth in the schedule shown in this section. Advisory fees that you pay to the
TPMM are established and payable in accordance with the disclosure brochure provided by each
TPMM to whom you are referred. These fees may or may not be negotiable. You should review the
recommended TPMM's disclosure brochure and take into consideration the TPMM's fees along with
our fees to determine the total amount of fees associated with this program.
If you are referred to a TPMM, you will receive full disclosure, including services rendered and fee
schedules, at the time of the referral by delivery of a copy of the relevant TPMM's Form ADV Part 2 or
equivalent disclosure document. In addition, if the investment program recommended to you is a wrap
fee program, you will also receive the Appendix 1 or equivalent wrap fee brochure provided by the
sponsor of the program. Our firm, acting as a Solicitor, or the TPMM will provide you with all
appropriate disclosure statements, including disclosure of referral fees (if any) paid to our firm and its
Investment Adviser Representatives.
We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when you have given our firm written authorization
permitting the fees to be paid directly from your account. Further, the qualified custodian will deliver an
account statement to you at least quarterly. These account statements will show all disbursements
from your account. You should review all statements for accuracy. We will also receive a duplicate
copy of your account statements which are also available via electronically on the internet both to you
as well as to our firm.
You will be required to sign an agreement directly with the recommended TPMM(s) as well as with our
firm. You may terminate your advisory relationship with the TPMM according to the terms of your
agreement with the TPMM. You should review each TPMM's disclosure brochure for specific
information on how you may terminate your advisory relationship with the TPMM and how you may
receive a refund, if applicable. You should contact the TPMM directly for questions regarding your
advisory agreement with the TPMM.
SEI Programs
AS discussed above, our firm regularly offers third-party management services provided through SEI
Investments ("SEI"). The SEI Program is an institutional mutual fund asset allocation program that we
use in the management of our clients' assets. We assist you in establishing an SEI Program Account
("Account") at SEI Private Trust Company ("SPTC"). All account transactions will be processed and
cleared through SEI Private Trust Company. The SEI Program uses mutual fund and securities asset
allocation portfolios developed by SEI Investments. The process is designed as follows:
1. Determine the investor's risk profile and investment objectives. We determine your investment
objectives, investment time horizon, and risk profile by means of an interview process and the
completion of a questionnaire.
2. Set a relevant asset allocation policy through a written investment Policy Statement forthe
investor using both SEI's allocation model(s) as well as Strategic Advisory Services,
L.L.C.'s custom model(s). We help you choose one of many mutual fund asset allocations.
3. Diversity among asset classes and styles. The investment managers of the underlying mutual
funds are selected by SEI Investments Management Corporation. SEI utilizes institutional
investment management firms. The managers are monitored by SEI to ensure that their
investment styles and performance remain consistent with the objectives of the mutual funds.
4. Re-balance the investor's portfolio. Re-balancing maintains the proper allocation to each asset
class in the model. Re-balancing occurs automatically if the underlying mutual funds deviate
from the prescribed quarterly allocation by greater than a 2% variance. For the tax-managed
models, the variance is 3%. Re-balancing occurs quarterly with no transaction fees.
5. Report results. SEI Private Trust Company (a subsidiary of SEI Investments Company) acts as
the transfer agent and custodian for your account. SEI Private Trust Company provides
reporting services including consolidated quarterly statements, quarterly performance reports,
and year-end tax reports.
SEI Funds and SEI Asset Allocation Program
Each SEI Fund pays an advisory fee to SIMC that is based on a percentage of the portfolio's average
daily net assets, as described in the mutual fund's prospectus. From such amount, SIMC pays the sub-
advisor(s) to the fund. SIMC's fund advisory fee varies, but it typically ranges from .10% -1.25% of the
portfolio's average daily net assets for its advisory services. Affiliates of SIMC provide administrative,
distribution and transfer agency services to all of the portfolios within the SEI Funds, as described in
the SEI Funds' registration statements. These fees and expenses are paid by the SEI Funds but
ultimately are borne by each shareholder of the SEI Funds. If you, the Client, invests in a model
available through the Asset Allocation Program, you will be charged the expense ratios of each of the
SEI Funds included in the applicable model. You may have the option to purchase certain SEI
investment products, including the SEI Funds, that SIMC
recommends through other brokers or agents
not affiliated with SIMC.
You may also pay custody fees to SPTC when their assets are custodied at SPTC. These fees will
vary depending on the account balance and trade activity in the account. You can refer to your account
application for specific information on SPTC custody fees.
Managed Account Program: Managed and Integrated Accounts
We participate in the Managed Accounts Program (the "Program"). To participate in the Program, our
firm, SEI Investments Management Corporation ("SIMC") and you execute a tri-party agreement
("Managed Account Agreement") providing for the management of certain assets in accordance with
the terms of the agreement. We will assist you in selecting an asset allocation strategy, which would
include the percentage of investor assets allocated to designated portfolios of separate securities
(each, a "Managed Account Portfolio") and may include the percentage of assets allocated to a
portfolio of mutual funds advised by SIMC or an affiliate of SIMC. You appoint SIMC to manage the
assets in each Managed Account Portfolio in accordance with a strategy we help you select. SIMC
may delegate its responsibility for selecting particular securities to one or more portfolio managers.
You may also pay custody fees to SPTC when your assets are custodied at SPTC. These fees will
vary depending on the account balance and trade activity in the account. You can refer to your account
application for specific information on SPTC custody fees.
SIMC's maximum fee schedule for the Managed Account Program is as follows:
SIMC Investment Management Fee Schedule
Manager Strategy SEI Fee*
All Cap Core, Alternative-Multi-Strategy SMA,
Equity Income, Global Equity, International
Developed Markets, Large Cap Core, Large Cap
Growth, Large Cap Value, Managed Volatility,
Mid Cap Core, Mid Cap Growth, Mid Cap Value,
Socially Responsible Investing
0.90% for the first $500,000
0.85% for the next $500,000
0.80% for the next $1 million
0.75% for the next $3 million
0.70% for the next $5 million
0.65% for amounts over $10 million
Manager Strategy SEI Fee*
Small Cap Growth, Small Cap Value, Small-Mid
Cap Core, Small-Mid Cap Growth, Small-Mid Cap
Value, REIT
1.10% for the first $500,000
1.05% for the next $500,000
1.00% for the next $1 million
0.95% for the next $3 million
0.90% for the next $5 million
0.85% for amounts over $10 million
Manger Strategy SEI Fee*
International Emerging Markets 1.25% for the first $500,000
1.20% for the next $500,000
1.15% for the next $1 million
1.10% for the next $3 million
1.05% for the next $5 million
1.00% for amounts over $10 million
Manager Strategy SEI Fee*
Alternative-Income, Alternative-Tax Advantage
Income, Alternative-MLP, Core Aggregate, Core
Aggregate Plus, Government/Corporate Bond,
Government Securities, Municipal Fixed Income,
Preferred Securities
0.65% for the first $500,000
0.60% for the next $500,000
0.56% for the next $1 million
0.54% for the next $3 million
0.50% for the next $5 million
0.45% for amounts over $10 million
Manager Strategy SEI Fee*
SEI Fixed Income Strategies (Certificate of
Deposit (CD), Corporate Bond, Floating Rate
Note, Government/Corporate Bond, GNMA,
Laddered BBB Corporate Bond Municipal Fixed
Income, Laddered BBB National Municipal Bond,
Treasury Inflation Protected Securities (TIPS))
0.30% for the first $500,000
0.27% for the next $500,000
0.25% for the next $1 million
0.20% for the next $3 million
Negotiable for amounts over $5 million
Manager Strategy SEI Fee*
SEI ETF Strategy, SEI Tax-Managed ETF
Strategy, SEI Factor Based All Cap Core, SEI
Factor Based Large Cap Core
0.55% for the first $500,000
0.35% for the next $500,000
0.30% for the next $1 million
0.25% for the $3 million
0.22% for the next $5 million
0.20% for amounts over $10 million
Manager Strategy SEI Fee*
Integrated Managed Account Solution (IMAP) 0.10% in addition to the SEI Fee described
above
*Prior to January 1, 2012, certain Clients may have been contractually obligated to pay a fee higher
than what is listed in this fee schedule.
SIMC may impose minimum account balances ranging from $50,000 to $1,000,000 depending upon
the Managed Account Portfolio chosen and whether the investor selects the tax management feature.
Under the Program, you will receive investment advisory services, the execution of securities
brokerage transactions, custody services and reporting services for a single specified fee. Participation
in the Program may cost you more or less than purchasing such services separately. In addition, the
Program fee may be higher or lower than that charged by other sponsors of comparable wrap fee
programs. The Program fee represents total compensation to be received by: (1) SIMC for investment
advisory services; (2) designated sub-advisers for investment management services; (3) SEI
Investments Distribution Corporation ("SIDCO"), an affiliate of SIMC, for execution of Program
brokerage transactions; and (4) SEI Private Trust Company ("SPTC"), an affiliate of SIMC, for custodial
and reporting services.
SIMC's fees, which are in addition to our firm's fees, will be a percentage of the market value of your
Managed Account Portfolio assets. SIMC's fees will be calculated and payable quarterly in arrears and
net of any income, withholding or other taxes. The fees may be subject to a discount.
Integrated Managed Accounts Program: Additionally, the Program offers a feature called Integrated
Managed Accounts ("IMAP"), which is an enhancement to the standard Program. In IMAP, SIMC
selects one sub-adviser to serve as a tax manager for the entire Managed Account Portfolio. Other
sub-advisers recommend securities using buy/sell lists for their specific asset class to which the
investor has selected. Your account will be charged an integration fee, as shown above, if you select
the IMAP feature. The fee will cover the integration of the equity managers, which helps result in
increased coordination across the equity account, increased tax efficiency and additional features such
as wash sale prevention. This additional fee only applies to the equity portion of your account that is
allocated to the integrated equities portfolio; the fees do not apply to the fixed income or funds. A
selection of your assets may receive a fee discount.
Tax Controlled Program: We also offer the Tax Controlled Program ("TC Program") sponsored by SEI
Investments Management Corporation ("SIMC"). To participate in the TC Program, our firm, SIMC, and
you execute a tri-party agreement (Tax Controlled Agreement) providing for the management of certain
of your assets. Under the Tax Controlled Agreement, you appoint our firm as your investment adviser
to assist you in selecting an asset allocation strategy, which would include a percentage of your assets
allocated to designated portfolios of separate securities (each, a "Separate Account Portfolio") and
may include the percentage of assets allocated to a portfolio of mutual funds sponsored by SIMC or
their affiliate. You appoint SIMC to manage the assets in each Separate Account Portfolio in
accordance with a strategy we help you select. SIMC may delegate its responsibility for selecting
particular securities to one or more portfolio managers. The TC Program seeks to manage taxes within
each Separate Account Portfolio through an individually managed U.S. equity and/or laddered
municipal bond component(s) within the structure of a globally diversified portfolio in order to meet your
long term goals for managing taxes while controlling risk.
TC Program fees, which are in addition to our firm's fees, are payable quarterly, in arrears, based on
the average daily balance of your account during the calendar quarter and are automatically deducted
from your account. Custodian fees and internal mutual fund expenses are separate from the SEI
Program fees.
The fees payable to SIMC for the individually managed components are referenced in the SIMC
Investment Management Fee Schedule above.
SEI Private Trust Company will debit your account on a quarterly basis for the above mentioned fees
and charges. The charges to your account will be on an arrears basis and will be remitted quarterly net
of any applicable account and performance reporting charges not charged to you. Upon written
notification, the agreement may be terminated by either you or our firm. Prorated fees will be charged
based on market value on the date notice is received.
You will receive monthly statements from the SEI Private Trust Company indicating holdings. A
quarterly report, indicating market value, cash flows, gains and losses, asset allocation, and
performance as it relates to market indices, is also available if you elect to receive it. Annually, you will
receive a tax report for the account.
SEI Private Trust company may charge a separate custodial fee for the custody services it provides to
our clients' accounts. Mutual funds held in your account pay their own advisory fees and other
expenses which are explained in each mutual fund's prospectus. These fees and expenses are
separate charges from your account management fees. Any account with a market value less than
$50,000 opened after January 1, 2009 will be charged a $60 annual custodial fee. SEI Private Trust's
current policy is to waive this fee for our firm as long as our firm is a member of the Select Advisors
Council. The Select Advisor's Council currently requires us to maintain at least $50,000,000 under
management with SEI Private Trust Co. SEI Private Trust, as its own discretion, can reinstate the
custodial fees. A $75 account termination fee will be applied to all accounts closed and leaving SEI
Private Trust Company after January 1, 2009.
The fees payable to our firm may not exceed 1.50%. The written Agreement for Investment
Management Services may be terminated at any time by sending written notification to the other by
Registered Mail. All fees earned shall be prorated and deducted from your account prior to termination
and shall be determined by the number of days from the beginning of the calendar quarter to the date
SEI Private Trust receives written notification by either you or our firm. Your account will continue to be
invested until it is transferred out, unless other written instructions from you have been received prior to
the transfer or liquidation of the account.
Types of Investments
We primarily offer advice on investment company securities (including no-load funds), exchange
traded funds, and equities.
Additionally, we may advise you on any type of investment that we deem appropriate based on your
stated goals and objectives. We may also provide advice on any type of investment held in your
portfolio at the inception of our advisory relationship.
You may request that we refrain from investing in particular securities or certain types of securities.
You must provide these restrictions to our firm in writing.
Assets Under Management
As of December 31, 2022, we advise on $137,008,584.00 in client assets on a discretionary basis and
$0.00 on a non-discretionary basis.