A. Description of the Advisory Firm
Dale K. Ehrhart, Inc. is a Corporation organized in the state of Florida, effective October
30, 1975. During the month of October 2021, Dale K. Ehrhart, Inc. submitted Florida
Domestication and Articles of Incorporation filings with the State of Florida. Prior to
October 2021, Dale K. Ehrhart, Inc. was organized in the state of Delaware. The principal
owners are Michael Thomas Hartley, Michael Warren Hartley, and Bonnie Brown
Hartley.
B. Types of Advisory Services
Dale K. Ehrhart, Inc. (hereinafter “DKE”) offers the following services to advisory
clients:
DKE is comprised of three divisions. (I) The Family Office division provides services
including but not limited to investment advice to high net worth families with a
minimum account size of $50 million. (II) The TAMP division provides back office and
investment management services to independent RIAs. Services include all non-client
facing activities associated with the preparation of Investment Proposals and ongoing
management of client accounts. (III) The Private Client division services direct clients of
DKE.
Investment Supervisory Services
DKE offers ongoing portfolio management services based on the individual goals,
objectives, time horizon, and risk tolerance of each client. DKE creates an Investment
Policy Statement for each client, which outlines the client’s current situation (income, tax
levels, and risk tolerance levels) and then constructs a plan to aid in the selection of a
portfolio that matches each client’s specific situation. Investment Supervisory Services
include, but are not limited to, the following:
• Investment strategy • Personal investment policy
• Asset allocation • Asset selection
• Risk tolerance • Regular portfolio monitoring
DKE evaluates the current investments of each client with respect to their risk tolerance
levels and time horizon. DKE will request discretionary authority from clients in order to
select securities and execute transactions without permission from the client prior to each
transaction. Most accounts serviced directly or indirectly by DKE are discretionary in
nature; however, DKE does accept non-discretionary accounts on a case by case basis.
Risk tolerance levels are documented in the Investment Policy Statement, which is given
to each client.
Turnkey Asset Management Program (“TAMP”) Services
DKE makes available advisory services and programs of third party investment advisors.
As a TAMP, DKE provides back office and investment management services to
independent RIAs. DKE’s TAMP clients split investment management fees with DKE,
which is disclosed in each firm’s investment management agreement. More specifically,
the independent registered investment adviser that directs its clients to DKE’s TAMP
services will explain the elements of
the DKE’s strategies, the applicable fees and will
perform all screening, suitability and compliance processes applicable to such
transactions. The adviser also obtains the necessary financial data from the client, assists
the client in determining the suitability of the program, assists the client in setting an
appropriate investment objective and assists the client in opening an account with the
TAMP.
DKE also provides model strategy portfolios and other third-party investment platforms
for advisors using its TAMP services. These model portfolios may be used by other
advisers in managing their clients’ assets. Depending on the type of program, the IAR
may assist the client to select a model portfolio of securities designed by the TAMP. It is
the third-party investment advisor (and not DKE) that retains client authority to purchase
and sell securities on a discretionary or non-discretionary basis pursuant to investment
objective chosen by the client. DKE will not have investment discretion over assets of the
third-party investment adviser’s clients except as directed by the third-party investment
advisor.
Services Limited to Specific Types of Investments
DKE generally limits its money management to mutual funds, equities, bonds, fixed
income, and ETFs. DKE may use other securities as well to help diversify a portfolio when
applicable.
C. Client Tailored Services and Client Imposed Restrictions
DKE offers the same suite of services to all of its clients. However, specific client financial
plans 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) and is used to construct a client specific plan to aid in the selection of a
portfolio that matches restrictions, needs, and targets.
Clients may impose restrictions in investing in certain securities or types of securities in
accordance with their values or beliefs. However, if the restrictions prevent DKE from
properly servicing the client account, or if the restrictions would require DKE to deviate
from its standard suite of services, DKE reserves the right to end the relationship.
D. Wrap Fee Programs
A wrap fee program is an investment program where the investor pays one stated fee that
includes management fees, transaction costs, fund expenses, and any other administrative
fees. DKE does not participate in any wrap fee programs.
E. Amounts Under Management
DKE classifies client assets it manages as either Assets Under Management (AUM) or Assets
Under Advisement (AUA). DKE has the following assets under management:
Discretionary AUM:
Non-discretionary
AUM:
Non-discretionary
AUA:
Date Calculated:
$ 497,976,535 $ 38,597,155
$ 312,781,478
December 2023