49 WM offers a variety of advisory services, which include financial planning, consulting, and investment
management services. Prior to 49 WM rendering any of the foregoing advisory services, clients are required
to enter into one or more written agreements with 49 WM setting forth the relevant terms and conditions of
the advisory relationship (the “Advisory Agreement”).
49 WM was registered as an investment adviser in October 2022 and is owned by 49 Holdings, LLC, Hunter
Lloyd, and Kyle Sims. As of December 31, 2023, 49 WM had $566,217,984 in assets under management,
all of which were managed on a discretionary basis.
While this brochure generally describes the business of 49 WM, certain sections also discuss the activities
of its Supervised Persons, which refer to the Firm’s officers, partners, directors (or other persons occupying
a similar status or performing similar functions), employees or other persons who provide investment advice
on 49 WM’s behalf and are subject to the Firm’s supervision or control.
Financial Planning and Consulting Services
49 WM offers clients a broad range of financial planning and consulting services, which include any or all
of the following functions:
• Business Planning
•
Trust and Estate Planning
•
Insurance Planning
• Retirement Planning
•
Tax and Cash Flow Planning
•
Education Planning
In performing these services, 49 WM is not required to verify any information received from the client or
from the client’s other professionals (e.g., attorneys, accountants, etc.,) and is expressly authorized to rely
on such information. 49 WM recommends certain clients engage the Firm for additional related services,
its Supervised Persons in their individual capacities as insurance agents or registered representatives of a
broker-dealer and/or other professionals to implement its recommendations. Clients are advised that a
conflict of interest exists for the Firm to recommend that clients engage 49 WM or its affiliates to provide
(or continue to provide) additional services for compensation, including investment management services.
Clients retain absolute discretion over all decisions regarding implementation and are under no obligation
to act upon any of the recommendations made by 49 WM under a financial planning or consulting
engagement. Clients are advised that it remains their responsibility to promptly notify the Firm of any
change in their financial situation or investment objectives for the purpose of reviewing, evaluating or
revising 49 WM’s recommendations and/or services.
Investment and Wealth Management Services
49 WM manages client investment portfolios on a discretionary or non-discretionary basis. 49 WM
primarily allocates client assets among various mutual funds, exchange-traded funds (“ETFs”), structured
notes, annuities, currencies (including cryptocurrencies or other digital assets directly or through collective
vehicles), alternative investments (including real estate investment trusts, master limited partnerships, etc.)
and independent investment managers (“Independent Managers”) in accordance with their stated
investment objectives.
Where appropriate, the Firm also provides advice about any type of legacy position or other investment
held in client portfolios, but clients should not assume that these assets are being continuously monitored
or otherwise advised on by the Firm unless specifically agreed upon. Clients can engage 49 WM to manage
and/or advise on certain investment products that are not maintained at their primary custodian, such as
variable life insurance and annuity contracts and assets held in employer sponsored retirement plans and
qualified tuition plans (i.e., 529 plans). In these situations, 49 WM directs or recommends the allocation of
client assets among the various investment options available within the product. These assets are generally
maintained at the underwriting insurance company, or the custodian designated by the product’s provider.
49 WM tailors its advisory services to meet the needs of its individual clients and seeks to ensure, on a
continuous basis, that client portfolios are managed in a manner consistent with those needs and objectives.
49 WM consults with clients on an initial and ongoing basis to assess their specific risk tolerance, time
horizon, liquidity constraints and other related factors relevant to the management of their portfolios. Clients
are advised to promptly notify 49 WM if there are changes in their financial
situation or if they wish to place
any limitations on the management of their portfolios. Clients can impose reasonable restrictions or
mandates on the management of their accounts if 49 WM determines, in its sole discretion, the conditions
would not materially impact the performance of a management strategy or prove overly burdensome to the
Firm’s management efforts.
Retirement Plan Consulting Services
49 WM provides various consulting services to qualified employee benefit plans and their fiduciaries. This
suite of institutional services is designed to assist plan sponsors in structuring, managing and optimizing
their corporate retirement plans. Each engagement is individually negotiated and customized, and includes
any or all of the following services:
• Plan Design and Strategy
•
Plan Review and Evaluation
•
Executive Planning & Benefits
• Fiduciary and Compliance
• Investment Selection
•
Plan Fee and Cost Analysis
•
Plan Committee Consultation
• Participant Education
As disclosed in the Advisory Agreement, certain of the foregoing services are provided by 49 WM as a
fiduciary under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). In
accordance with ERISA Section 408(b)(2), each plan sponsor is provided with a written description of 49
WM’s fiduciary status, the specific services to be rendered and all direct and indirect compensation the
Firm reasonably expects under the engagement.
OCIO Services – Opal Capital LLC
49 WM has engaged Austin Graff, Managing Member of Opal Capital LLC (“Opal”), an SEC registered
investment adviser, to serve as an outsourced Chief Investment Officer (“CIO”). Mr. Graff’s services as
an outsourced CIO may include one or more of the following, (i) providing analysis on the economy,
securities markets, and individual securities, (ii) assisting 49 WM IARs and their clients in developing
custom investment portfolios, (iii) attending client meetings, (iv) providing guidance on asset allocation,
and (iv) otherwise assisting the firm in evaluating and monitoring current and prospective investment
management providers and platforms. This arrangement creates a conflict of interest in that Mr. Graff’s
duties and obligations to Opal will limit the time allocated to serving as outsourced CIO for 49 WM. We
expect the time allocation conflict will be mitigated in part as result of the synergies Mr. Graff will benefit
from by using similar investment methodologies for both Opal and 49 WM. In addition, Mr. Graff will have
access to proprietary information of 49 WM; however, such access will be strictly governed by a
confidentiality agreement.
Use of Independent Managers
As mentioned above, 49 WM selects certain Independent Managers to actively manage a portion of its
clients’ assets. The specific terms and conditions under which a client engages an Independent Manager
are set forth in a separate written agreement with the designated Independent Manager. That agreement can
be between the Firm and the Independent Manager (often called a subadvisor) or the client and the
Independent Manager (sometimes called a separate account manager). In addition to this brochure, clients
will typically also receive the written disclosure documents of the respective Independent Managers
engaged to manage their assets.
49 WM evaluates a variety of information about Independent Managers, which includes the Independent
Managers’ public disclosure documents, materials supplied by the Independent Managers themselves and
other third-party analyses it believes are reputable. To the extent possible, the Firm seeks to assess the
Independent Managers’ investment strategies, past performance and risk results in relation to its clients’
individual portfolio allocations and risk exposure. 49 WM also takes into consideration each Independent
Manager’s management style, returns, reputation, financial strength, reporting, pricing and research
capabilities, among other factors.
49 WM continues to provide services relative to the discretionary or non-discretionary selection of the
Independent Managers. On an ongoing basis, the Firm monitors the performance of those accounts being
managed by Independent Managers. 49 WM seeks to ensure the Independent Managers’ strategies and
target allocations remain aligned with its clients’ investment objectives and overall best interests.