Yousif Capital Management, LLC (“YCM”, the “Firm” or “we”) is a limited liability company
formed under the laws of the State of Michigan. The Firm is registered as an investment adviser
with the SEC pursuant to the Investment Advisers Act of 1940 (the “Advisers Act”). YCM was
founded in January 2021 by Kevin K. Yousif, CFA, who is the President, and sole owner of YCM.
The Firm operates from a single office in Bloomfield Hills, Michigan.
Description of Advisory Services
YCM is an investment advisory Firm that focuses on rule-based and model-driven investment
strategies, utilizing a combination of primarily equities, fixed income securities, and Exchange
Traded Fund (“ETF”) products to create proprietary models based on industry benchmarks which
are tailored to address a Client’s investment objectives and risk tolerance. YCM provides advisory
services tailored to meet the specific needs and requirements of each Client. YCM provides
investment advisory services to corporations, municipalities, Taft-Hartley Clients, faith-based
organizations, ERISA plans, banks, captive insurance companies, other regional investment
advisers, and individuals, (each referred to as the “Client”, collectively the “Clients”). Such
services are provided on a discretionary basis, although YCM accepts Clients’ trading instructions
from time to time. Clients may place investment restrictions or guidelines on their account(s).
YCM manages Client assets in separately managed accounts (each an “SMA” or “Client
Account”). An SMA is a dedicated account owned by a single Client and governed through an
investment management agreement (“IMA”) between the account owner and YCM. Each Client
also completes an investment policy statement (“IPS”) or similar document outlining Client
Account investment objectives, risk tolerance and relevant information that assists YCM with
structuring the Client’s portfolio.
Sub-Advisory Arrangements
YCM has established relationships with other independent investment advisers or investment
program sponsors pursuant to which YCM serves in a sub-advisory capacity and provides
investment advisory services to Clients of the other investment adviser or investment program
sponsor. When we participate in an arrangement sometimes known as a “managed account
program” (“wrap program” or “program”), we make one or more of our proprietary strategies
available to Clients of the investment adviser sponsoring the program. The sponsoring investment
adviser determines if our strategy is suitable for its Client and submits the account to us for
acceptance. If we accept the account, we manage the account with full discretionary trading
authority and in accordance with any reasonable
investment restrictions requested by the
applicable Client of the sponsoring investment adviser. In these cases, we generally do not have
an agreement or any direct, contractual relationship with the Client. Instead, we enter into a sub-
advisory agreement with the sponsoring investment adviser. The sponsoring investment adviser
establishes the fee which the Client pays, and we receive a portion of the fee for our advisory
services from the sponsoring investment adviser as agreed upon in the sub-advisory agreement. If
a Client’s investment adviser desires us to provide investment management services to the Client
and to have a direct, contractual investment management relationship with the Client, we provide
sub-advisory services through a tri-party agreement among the Client’s investment adviser, the
Client and YCM. If the Client is a retail Client, the other investment adviser determines the
suitability of the strategy for that retail Client. In these arrangements, the investment adviser
selects us to manage a portion of the Client’s assets in accordance with a particular model. We will
manage the assets in accordance with the Client’s investment guidelines, including any
restrictions. In those situations, we receive our fee directly from the Client as agreed upon in our
agreement with the investment adviser and the Client. We may also receive our fee through the
custodian who directly charges the Client’s account.
ERISA Accounts
YCM will act as a 3(21) fiduciary providing investment recommendations to plan sponsors and/or
trustees and/or as a 3(38) investment manager, relieving the plan sponsor or trustee of their
fiduciary responsibility and assuming the investment management decision making for the plan.
Clients we service are employee benefit plans, Taft-Hartley pension trusts, or individual retirement
accounts (IRAs) through a sub-advisory agreement, pursuant to the Employee Retirement Income
and Securities Act (ERISA), and regulations under the Internal Revenue Code of 1986 (the Code),
respectively. As such, YCM is subject to specific duties and obligations under ERISA and the
Code that include, among other things, restrictions concerning certain forms of compensation.
YCM does not receive any commissions or trailing fees such as 12b-1 fees on any securities we
manage. YCM monitors investment guidelines, provides specified reporting and complies with
other conditions as specified in each Client’s IMA.
Assets under Management (Regulatory Assets under Management)
As of December 31, 2023, YCM currently has $ 15,029,547,343 in Regulatory Assets Under
Management (“RAUM”) on a discretionary basis. YCM does not manage regulatory assets on a
non-discretionary basis.