WBI Investments, LLC (referred to throughout this brochure as “WBI” or the “Firm”), is a limited
liability company formed under the laws of the State of Delaware and is registered as an investment
adviser with the SEC. This brochure provides clients and prospective clients with information regarding
WBI and the qualifications, business practices, and nature of advisory services that should be considered
before becoming an advisory client of WBI.
Principal Owner
Don Schreiber, Jr., is founder and principal owner of WBI, and serves as the Co-CEO and Co-Portfolio
Manager of the Firm.
Firm History
WBI was originally founded in 1984 as Wealth Builders, Inc. to provide financial advisory and business
planning services to individuals and institutions. Its goal was to provide clients with the highest level of
financial advice and service possible.
In 1992, WBI (then known as Wealth Builders, Inc.) introduced its initial group of proprietary portfolio
strategies designed to pursue consistent, reliable returns with substantially less risk than traditional
approaches. In 1997, Wealth Builders, Inc. began offering its investment management to unaffiliated
advisors and initiated the development of its wholesale institutional distribution program.
In February 2006, the company began offering the investment management services of its wholesale
institutional distribution operations under the “Doing Business As” (DBA) name WBI InvestmentsTM.
The company continued to offer retail financial planning and wealth management services as Wealth
Builders, Inc. In June 2009 Wealth Builders, Inc. formally changed its name to WBI Investments, Inc.,
and in January 2010 WBI Investments spun off its retail financial planning and wealth management
services group into a separate affiliated entity: Hartshorne Group, LLC (“HG”), with WBI InvestmentsTM
continuing its existing discretionary investment management operations. In February of 2023 WBI
changed its form of organization from an S Corp formed under the laws of New Jersey to a limited
liability company formed under the laws of Delaware thereby changing the official name from WBI
Investments, Inc. to WBI Investments, LLC. This change in structure did not affect the ownership or
operation of WBI.
Today, WBI continues to operate as an independent, privately owned investment management firm that
provides fee-only discretionary investment management to individuals, pension and profit-sharing plans,
charitable organizations, corporations, Exchange Traded Funds, and other entities.
Client Assets Under Management
As of December 31, 2023, WBI managed approximately $527,406,298 on a discretionary basis, and no
assets on a non-discretionary basis.
Advisory Services
WBI provides investment management services to both institutional and retail clients by offering
investment products designed to meet a wide variety of investor needs and risk profiles that are accessible
through a number of programs and platforms.
Types of Investment Products
WBI’s product offerings include:
• Separately Managed Accounts (SMA)
• Affiliated Exchange Traded Funds (“Affiliated ETFs”)
• Unified Managed Accounts (UMA)
Separately Managed Accounts (SMA)
WBI provides investment management services to clients facilitated by unaffiliated independent
investment advisors contractually engaged by WBI (collectively referred to as “Introducing Advisors”).
WBI may also act as sub-advisor or third-party investment advisor to another investment advisor. Each
client account is held at an unaffiliated brokerage firm or custodian, and is registered to the person,
persons, or other entity listed on that firm’s new account forms. All securities are beneficially owned by
the account’s registered owner or owners. WBI directs the investment of the securities in the account
under a limited power of attorney granted to WBI by the client in the investment management agreement
(“IMA”). WBI is compensated by the investment management fee as detailed in the IMA. Clients
introduced by Hartshorne Group, LLC (“HG”) an affiliated company, are also typically managed in this
way, and for this purpose Hartshorne will be referred to as an Introducing Advisor, in terms of its
responsibilities. The primary Client contact for matters concerning a WBI SMA is the referring
Introducing Advisor.
Introducing Advisors have the ability to allocate their client assets across one or more WBI SMA
strategies, available through several different management programs, including those described below.
• WBI Traditional SMA Program, which implements our proprietary portfolio strategies that invest
directly in individual securities, and also includes our Power Factor® SMA strategies and our
Trend Switch SMA strategies.
• WBI Tax-Smart SMA Program which implements our proprietary portfolio strategies primarily
through an allocation to the Affiliated ETFs. The term “Tax-Smart” refers to the potential tax
efficiencies inherent to the ETF structure. Clients should be aware that while we believe the
allocation to ETFs in our Tax-Smart SMA Program may provide increased tax efficiency over
traditional SMA approaches, tax-qualified accounts, such as IRAs, do not benefit from a tax-
efficient or “Tax-Smart” structure.
• WBI Cy Portfolio Optimization Program (“Cy Program”), which provides online asset allocation
and investment advice, and is intended for use by Introducing Advisors. See “Cy Program”
section below for more details.
• Variable Annuity/Life Product are used by some existing HG accounts only, whereby WBI may
also direct the allocation of investment subdivisions which comprise a variable annuity/life
product owned by the client.
The investment strategy and management program will be based on each client’s unique and individual
investment needs and portfolio strategy selection or selections. A client’s investment needs are
determined by the Introducing Advisor’s evaluations with their client and/or through the Cy Program
loss tolerance and required rate of return determination process (as described further below). Prior to
introducing a prospective client to WBI, the Introducing Advisor collects financial and demographic
information, and assists clients in identifying their financial objectives. The Introducing Advisor will
describe the investment strategies available from WBI that may be most beneficial and appropriate given
the client’s objectives. The Introducing Advisor will then forward the Client Information & Strategy
Selection form and all associated paperwork to WBI. WBI is expressly authorized to rely on the
information provided in the Client Information & Strategy Selection form without further verification.
The appropriateness of WBI’s investment strategies and any recommendations is highly dependent on
receiving accurate information from clients and their Introducing Advisor. If clients provide their
Introducing Advisor and WBI with inaccurate or incomplete information or fail to promptly update the
information provided to the Introducing Advisor and WBI when it changes, the appropriateness of any
WBI investment strategy could be materially impacted. The client should notify their Introducing Advisor
and WBI of material changes in financial circumstances or investment goals that warrant changes to the
portfolio strategy selected for an account. To the extent an Introducing Advisor directs WBI to modify
or customize the implementation of an investment strategy, their client should also be advised as to the
potential for changes in the risk or performance profile of their account(s).
Affiliated Exchange Traded Funds (ETFs)
WBI serves as investment Sub-Adviser to a series of ETFs registered under the Investment Company Act
of 1940, as amended (the “Investment Company Act”), domiciled in the United States, which are
primarily actively-managed ETFs, but also include a passively-managed index tracking ETF (collectively
the “Affiliated ETFs”). The Affiliated ETFs are a series of Professionally Managed Portfolios structured
under Absolute Shares Trust (the “Trust”). The Trust administrator, transfer agent and fund accountant
is U.S. Bancorp Fund Services, LLC. The distributor of the Affiliated ETFs is Foreside Fund Distributors,
LLC, an SEC registered broker-dealer and member of FINRA (“Foreside”). Foreside is not a related
entity or affiliated with WBI.
Millington Securities, LLC (“Millington”), an affiliated Registered Investment Advisor and the Adviser
to the Trust, has selected WBI to act as Sub-Adviser for each Affiliated ETF and to be responsible for
the day-to-day investment management of each Fund.
WBI is responsible for investment selection, asset allocation, and all asset management decisions
regarding the Affiliated ETFs. Affiliated ETF assets are deposited and held at U.S. Bank National
Association, the qualified custodian of Affiliated ETF assets and securities.
These ETFs are listed on the NYSE and may be purchased in any brokerage account. They are also
available to be utilized in the Tax-Smart SMA strategies, the Cy Program, and Unified Managed
Accounts.
WBI manages the Affiliated ETFs in accordance with their stated investment objectives and investment
policies which are outlined and detailed in the Prospectus and Statement of Additional Information
(“SAI”) for the Affiliated ETFs. The Affiliated ETFs are not tailored to the individualized needs of any
particular shareholder or investor and an investment in such a vehicle does not, in and of itself, create an
advisory relationship between the shareholder or investor and WBI. Clients are advised to review the
Affiliated ETF Prospectus and SAI for a complete description of the Affiliated ETFs’ investment
objectives, policies and operational structures. All investors in the ETFs will receive or have available a
copy of the Prospectus and SAI.
WBI has an inherent conflict of interest in investing in or recommending the Affiliated ETFs to clients
for the following reasons:
• WBI and its affiliates receive management fees from the Affiliated ETFs. To avoid receiving two
layers of management fees in those situations where clients invest in the Affiliated ETFs through
SMA and Platform accounts, WBI will either: (i) waive the management fee charged at the
account level; or (ii) credit the portion of the management fees paid by the Affiliated ETFs to
WBI and its affiliates with respect to an account’s investments in Affiliated ETFs against the
account-level management fee earned by WBI. Please refer to Item 5 (Fees and Compensation)
of the Brochure for more information.
• The Affiliated ETFs incur management fees at varying rates. As a result, WBI, as discretionary
manager to SMA and Platform Accounts, can increase or decrease its level of compensation by
adjusting the asset allocation and Affiliated ETF selections, creating a conflict of interest. WBI
addresses this conflict by adhering to written parameters based on the Client’s selected investment
objective, and which do not allow WBI to consider compensation to WBI or its affiliates in
connection with managing portfolio strategies. Please refer to Item 5 (Fees and Compensation) of
this Brochure for more information.
Unified Managed Accounts (UMA)
UMA accounts are part of unaffiliated sponsored programs by an account custodian or brokerage firm
and may include more than one portfolio strategy. On a periodic basis, WBI provides a model allocation
to the sponsor that corresponds to one or more Separately Managed Account strategies. The client may
choose to have the sponsor implement one or more model allocations in the UMA.
Accessing WBI Products and Services
Clients can access WBI’s investment products and services through a variety of programs, including:
• Cy Portfolio Optimization Program (Cy Program)
• Sponsored Investment Management Programs
• Investment Wrap Programs
• ERISA and Other Plans
Cy Portfolio Optimization Program (Cy Program)
The Cy Program provides internet based online asset allocation and investment advice, and is intended
for use by Introducing Advisors. The Cy Platform serves as a portal that provides financial intermediaries
with access to various investment strategies referred to as "Cy Optimized Portfolios." CyborgTech, LLC
(CyborgTech) owns the technology and intellectual property for the Cy Platform. The Cy Optimized
Portfolios are based on a proprietary optimization algorithm and other financial technology licensed by
CyborgTech, which is affiliated with WBI. WBI is responsible for the investment-related aspects of the
Cy Portfolio Optimization Platform. References to “Cy” or its methodology and outputs refer to the
algorithms offered by CyborgTech through the Cy Platform.
The Cy Program uses financial information input into the system by an Introducing Advisor on a client’s
behalf, to assist in first determining a client’s loss tolerance, and next estimating the client’s required rate
of return (“RROR”) necessary to meet the client’s retirement goals subject to certain assumptions as
disclosed on the platform. Once the loss tolerance is established and the RROR estimate is calculated,
the Cy Program uses historical data analysis to produce an optimized portfolio that aims to satisfy both
goals for the client when possible. An optimized portfolio allocation illustration will then be reviewed by
the Introducing Advisor with their client for appropriateness and suitability. Introducing Advisors have
the ability to recommend other Cy Optimized Portfolios to their clients as well as WBI SMAs and other
investment strategies through the Cy Platform.
WBI will use the
Cy Program to periodically monitor client account allocations and rebalance or
reconstitute each account among available underlying strategies and products within an optimized
portfolio, as WBI deems appropriate to meet the Client’s stated investment objective. Therefore, WBI’s
discretionary authority also includes the ability to adjust, replace, increase or reduce asset allocations
without prior consultation with the Client. Clients should consider that the Cy Program is not designed
to provide clients with a comprehensive financial plan and instead is built to advise clients on how they
may seek to achieve discrete risk/return goals selected by the Client.
For additional important information pertaining to the Cy Program strategies, please read the Terms and
Conditions and Important Disclosures on the Cy website, prior to investing. Disclosures are also available
from your Introducing Advisor.
In addition to the Portfolio Strategies offered at any given time, there may be existing client accounts
being managed using Portfolio Strategies that are no longer being offered to new clients. A list of
discontinued Portfolio Strategies is available on request.
Sponsored Investment Management Programs or Investment Wrap Programs
Clients may also gain access to WBI investment management services through advisory programs or
investment platforms (each a “Program”) sponsored by unaffiliated investment advisers and/or broker-
dealers (each a “Sponsor”). The Programs may be wrap-fee programs, overlay portfolio management
programs, or general asset allocation programs. Through the Programs, clients must establish an account
directly with the Sponsor. WBI is then available to clients for selection as an independent investment
manager. Many of the terms and conditions of the Programs are determined by the Sponsor. For wrap-
fee programs, a portion of the wrap fee is paid to WBI for its investment management services. Please
refer to Item 5 (Fees and Compensation) of the Brochure for more details on the fees for these Programs.
In certain Programs or pursuant to a model portfolio services agreement, WBI provides investment
recommendations in the form of model portfolios to a Sponsor or an overlay portfolio manager
(collectively, “OPM”), which may or may not be affiliated with the Sponsor and which may utilize such
recommendations in connection with its management of Program client accounts. OPMs receive WBI’s
model portfolios for a particular Portfolio Strategy (as described below). Based on the model portfolio,
the OPM or its designated representative, exercises investment discretion and executes each client’s
portfolio transactions predicated on the OPM’s own investment judgment.
WBI also develops and maintains model portfolios comprised of WBI-Affiliated ETFs or other securities.
These Model Portfolios are licensed or otherwise made available to intermediaries and accessed by
intermediaries through third-party platforms. Users of such platforms may use the Model Portfolios as
investment strategies for managing their underlying clients’ accounts. Information about Model
Portfolios is made available on certain platforms and is updated periodically in accordance with the
Model Portfolio’s reallocation schedule. Based on the Model Portfolio, the platform sponsor or its
designated representative, often referred to as an “overlay manager,” exercises investment discretion and
executes each client’s portfolio transactions predicated on the platform sponsor’s or overlay manager’s
own investment judgment. WBI does not provide Model Portfolios based on the individual needs of any
program client.
As is the case with SMA accounts, clients accessing WBI directly through a Platform have the ability to
impose reasonable restrictions on their accounts.
ERISA and Other Plans
WBI provides services as a discretionary investment manager to pension plan and other employee benefit
clients subject to the Employee Retirement Income Security Act of 1974 (“ERISA”), and to individual
retirement accounts (“IRAs”) and other plans and arrangements subject to the prohibited transaction
provisions of the Internal Revenue Code of 1986 (the “Code”), through its separately managed account
program and through wrap-fee and asset allocation programs sponsored by unaffiliated investment
advisers and/or broker-dealers. To the extent that WBI, in providing discretionary investment
management services to pension plan and other employee benefit plan clients that are subject to Title I
of ERISA through these programs, provides services that are defined in ERISA Section 3(21) as fiduciary
services, WBI acknowledges that it acts as a fiduciary. Similarly, to the extent that, in providing such
discretionary investment management services to IRAs and other plan clients subject to Section 4975 of
the Code through these programs, WBI acknowledges that it acts as a fiduciary.
In its services to ERISA pension plan clients under the SMA and sponsored investment management
programs or wrap programs, WBI is a “covered service provider” under regulations issued by the U.S.
Department of Labor (“DOL”) under Section 408(b)(2) of ERISA. Accordingly, WBI will disclose, to
the extent required by ERISA Regulation Section 2550.408b-2(c), to its ERISA pension plan clients the
services it will provide to the plan client, its status as a fiduciary under Section 3(21) of ERISA, and the
compensation, direct and indirect, that it and its subcontractors and affiliates reasonably expect to receive
under the arrangement reasonably in advance of the date on which WBI enters into the arrangement with
the plan client.
In accordance with ERISA Regulation Section 2550.408b-2(c)(vi)(A), WBI will disclose within thirty
(30) days following receipt of a written request from the responsible plan fiduciary all information
relating to compensation or fees received in connection with the arrangement with the pension plan client
that is required for the plan to comply with the reporting and disclosure requirements of Title I of ERISA.
Where WBI invests assets of ERISA, IRA or other plan clients in Affiliated ETFs through the SMA or
platform programs it will either comply with the requirements of relevant DOL prohibited transaction
exemptions or structure the transactions in order to avoid the need for a prohibited transaction exemption.
WBI’s Tax-Smart SMA Program implements our proprietary portfolio strategies through an allocation
to the Affiliated ETFs. Clients should be aware that while we believe the allocation to ETFs in our Tax-
Smart SMA Program may provide increased tax efficiency over traditional SMA approaches, tax-
qualified accounts, such as IRAs, do not benefit from a tax-efficient or “Tax-Smart” structure. WBI does
not provide tax services or tax advice. Please consult with a tax professional prior to making investment
decisions.
Establishing Accounts with WBI Products
WBI Separately Managed Accounts
The new account process for participation in a WBI Separately Managed Account Program requires the
Introducing Advisor to obtain information from the Client regarding the Client’s financial situation,
investment objective and any reasonable restrictions the Client wishes to place on the investment of the
Account. The Introducing Advisor shall conduct an analysis and make a determination of the suitability
of the services to be provided for the Client. This analysis will include the Introducing Advisor
completing WBI’s Client Information & Strategy Selection form or developing a client profile through
the Cy Platform.
Clients select one or more portfolio strategies (each a “Portfolio Strategy” or collectively “Portfolio
Strategies”) based on their circumstances and goals, and their account(s) are managed on a discretionary
basis to conform, as closely as is practicable, to the current allocation of the Portfolio Strategy selected.
The Portfolio Strategy will be rebalanced periodically, as described in the Portfolio Strategy description,
by buying or selling securities to bring the asset allocation in the client’s account in line with the target
asset allocation for the Portfolio Strategy. Rebalancing trades for certain Portfolio Strategies are subject
to minimum dollar amounts as determined by WBI and they generally do not occur on a single date, or
on the same day. Rebalancing transactions for different clients will be effected at different prices. Clients
will not be notified before a rebalance occurs. Asset allocation and rebalancing Portfolio Strategies does
not guarantee a profit or protect against loss. Rebalancing trades in a taxable account may result in a
taxable event for the client, as well as transaction costs.
A list and description of the primary objective of each Portfolio Strategy, as well as some of their key
investment and risk characteristics, is available upon request, and is provided by the Introducing Advisor
to clients prior to or simultaneously with their entering into an investment management agreement. SMA
and Platform accounts may, at the client’s election, access WBI’s Portfolio Strategies by investing in a
portfolio of individual securities through WBI’s Traditional SMA Program, by investing in a portfolio of
Affiliated ETFs through WBI’s Tax-Smart SMA Program, or through the Cy Portfolio Optimization
Program. SMA and Platform accounts that are invested in a portfolio of Affiliated ETFs may also, at
WBI’s discretion, hold individual securities directly in the account in order to provide exposure to
instruments or market sectors that are not represented in the Affiliated ETFs.
Prior to WBI providing investment management services, the client will be required to enter into a formal
IMA with WBI setting forth the terms and conditions under which WBI will manage the client's assets,
and a separate custodial/clearing agreement with the broker-dealer/custodian. Both WBI's IMA and the
broker-dealer/custodian’s custodial/clearing agreement authorizes the broker-dealer/custodian to accept
instructions from WBI to debit the account for WBI's investment management fee and to directly remit
that management fee to WBI. The authority for WBI to calculate and have fees deducted directly from
client accounts is a form of custody (as defined by the SEC under Rule 206(4)-2 of the Investment
Advisers Act of 1940, as amended (the “Advisers Act”)). Please read Item 15 of this Brochure for more
information regarding custody.
As stated above, WBI client assets are housed at qualified custodians, typically nationally recognized
brokerage firms, but the ability to effectively integrate operations and trading processes with those used
by WBI is also a consideration. A list of qualified custodians currently approved by WBI for a managed
SMA is available on request. Certain broker-dealers/custodians may enable WBI to obtain many no-load
mutual funds without transaction charges and other no-load and load waived funds at nominal transaction
charges. The commission and/or transaction fees charged by any particular broker-dealer/custodian may
be higher or lower than those charged by other broker-dealers. Please read Item 12 - Brokerage Practices
of this Brochure for more information regarding our brokerage arrangements.
In performing its services, WBI shall not be required to verify any information received from the client
or from the client’s other professional advisers and is expressly authorized to rely on the information
provided. It remains the client’s responsibility to promptly notify their Introducing Advisor and WBI if
there is ever any change in the client’s financial situation or investment objectives for the purpose of
reviewing, evaluating, or revising WBI’s previous allocations and/or services, or if the client wishes to
impose any reasonable restrictions upon WBI’s management services. A copy of this Brochure will be
provided to each client before, or at the same time, the Investment Management Agreement is executed.
Sponsored Investment Management Programs or Investment Wrap Programs
Clients must establish an account directly with the program sponsor. All applicable contracts and account
paperwork will be completed by the client with the assistance of the program sponsor representative. The
program sponsor representative will obtain the necessary financial data from the client, assist the client
in determining suitability, and help the client to set the appropriate investment objectives. The program
sponsor will then provide all necessary information to WBI. The program sponsor representative will
meet periodically to review the client’s financial situation, investment objectives, and current portfolios
and then make any necessary changes to the WBI portfolio strategy selection and notify WBI of any
changes to be made. A representative of the program sponsor will be responsible for providing the WBI
disclosure brochure. Depending on the money manager program, a WBI client agreement will also be
provided to the client.
WBI will have the power and authority, as granted by the client through the program sponsor contract,
to make investment decisions over the portion of the client’s assets delegated to WBI. However, WBI
may not be responsible for executing transactions in the client’s account. In those cases, WBI will provide
all trade instructions to the sponsor of the program who will be responsible for executing the
recommendations of WBI.
Accounts established through a program sponsored by an unaffiliated investment adviser and/or broker-
dealer will be held and cleared through a custodian selected by the program sponsor, pursuant to a
relationship between the sponsor and the clearing broker-dealer. The program sponsor reserves the right
to designate alternative clearing and custody arrangements similar to those of its preferred clearing
broker-dealer. Custody of funds and securities is maintained by the various custodial firms, not by WBI.