Mack Investment Securities, Inc. (“MIS”) is an SEC-registered investment adviser with its principal
place of business located in Illinois. MIS began conducting business in 1986.
Listed below are the firm's principal shareholders (i.e., those individuals and/or entities controlling 25%
or more of this company).
• Stephen W. Mack, President, through his Living Trust
Mack Investment Securities, Inc. offers the following advisory services to our clients:
INVESTMENT SUPERVISORY SERVICES ("ISS")
INDIVIDUAL PORTFOLIO MANAGEMENT
Our firm provides continuous advice to a client regarding the investment of client funds based on the
individual needs of the client. Through personal discussions in which goals and objectives based on a
client's particular circumstances are established, we develop and manage a client's personal investment
portfolio based those discussions and the best interests of the client. During our data-gathering process,
we determine the client's individual objectives, time horizons, risk tolerance, and liquidity needs. As
appropriate, we also review and discuss a client's prior investment history, as well as family composition
and background.
We manage these advisory accounts on a discretionary and non-discretionary basis. Account
supervision is guided by the client's stated objectives (i.e., maximum capital appreciation, growth,
income, or growth and income), as well as tax considerations.
Clients may impose reasonable restrictions on investing in certain securities, types of securities, or
industry sectors.
Our investment recommendations are not limited to any specific product or service offered by a broker-
dealer or insurance company and will generally include advice regarding the following securities:
• Exchange-listed securities
• Securities traded over-the-counter
• Corporate debt securities (which may include commercial paper)
• Certificates of deposit
• Municipal securities
• Mutual fund shares
Because some types of investments involve certain additional degrees of risk, they will only be
implemented/recommended when consistent with the client's stated investment objectives, tolerance for
risk, liquidity, and suitability.
INVESTMENT SUPERVISORY SERVICES ("ISS")
MODEL STRATEGY MANAGEMENT
Our firm provides portfolio management services to clients using model asset allocation portfolios.
Each strategy is designed to meet a particular investment goal.
Mack Investment allocates investment assets among various investment strategies that are actively
managed by independent or affiliated investment managers that serve as sub-advisors to our Firm's
Money Managers Plus Program (MMP). We also offer a form of direct investment Management where
we can purchase individual equity and fixed income securities and/or mutual funds for our clients.
Money Managers Plus Program (MMP)
MIS, on a discretionary basis, selects for its clients various investment advisors and/or subadvisors that
it believes can forecast financial market trends and act on those trends to the benefit of MIS' clients. It
selects these subadvisors based on their past performance, although past performance is no guarantee
of future results. In MIS's selection process, MIS also considers the subadvisor's past success in
reducing exposure to markets when risk is higher while providing acceptable performance as
determined by MIS. In so doing, MIS is authorized, without prior consultation with the client, to allocate
client investment assets in and among various subadvisors, independent and affiliated investment
managers and/or asset allocation programs created by MIS, on a discretionary basis, consistent with the
client's investment objectives, including terminating the services of any designated subadvisor and
reallocating such assets to a different MIS designated subadvisor. One or more subadvisors may each
provide advice for a separate portion of a client's account. The appropriate subadvisors are selected by
MIS for, and routinely with, each of its clients based on matching the styles of subadvisors with
individual client's investment objectives. MIS also attempts to place clients with subadvisors whose
styles complement each other. MIS in turn monitors the activities of these subadvisors and their overall
performance but does not undertake supervision of the individual trades of these subadvisors. MIS may,
at its sole discretion, reject or defer trade instructions as well as to place trades that may not have been
instructed by subadvisors if MIS feels these actions may be in the interest of its clients. The subadvisors
engaged by MIS for its clients often utilize mutual funds to attempt to meet client's objectives and
switch funds within the same family or, if applicable, to other funds where the transfer, in most cases,
will not cause the client to incur a load commission. Funds invested may, at times, be subject to early
redemption charges. Some subadvisors for some of MIS' clients use stock, bonds and other securities
instead of, or with, mutual funds. The exact strategy or strategies depends on the advisor, subadvisor or
subadvisors selected. Accounts may differ in their model holdings on an account-by-account basis.
Current Management Strategies include:
These first strategies are run by our firm.
• Modified Risk: The Modified Risk portfolio is run by our President, Stephen W. Mack. This strategy
attempts to utilize market sentiment and market trends to implement decisions to increase and decrease
risk in a globally invested portfolio. At times, when sentiment is elevated for markets to rise, Modified
Risk may reduce its exposure to markets. Money markets are routinely used when risk is reduced. When
sentiment is overly negative, Modified Risk may increase its exposure to markets by increasing exposure
to markets. In addition, at times when our analysis indicates market trends may be moving lower,
Modified Risk may reduce exposure to markets. When our analysis indicates market trends may be
moving higher, Modified Risk may increase exposure to markets. We may vary from these strategies
when it is thought to be best for the portfolio. This strategy may remain in risk investments or money
markets for extended periods of time. Fees continue to be assessed as this strategy continues to be
monitored for the potential of a change to increased or reduced risk levels. The portfolio may invest in
a wide range of leading asset classes that may include domestic and foreign equity markets,
commodities, stocks, bonds, currency, and a variety of other asset classes. This is accomplished through
the primary use of Exchange Traded Funds ("ETFs") but may also include mutual funds, stocks, and
bonds. This strategy may include the use of leverage to increase exposure to markets. Leveraged mutual
funds and ETFs seek to deliver multiples of the performance of the index or benchmark they track and
could magnify any losses or gains. This strategy may also invest a portion of its balances into inverse
investments which may benefit by seeking gains in falling markets but could also lose in rising markets.
Modified Risk accounts may differ in their holdings on an account-by-account basis.
• Dividend Leaders: Dividend Leaders is run by our President, Stephen W. Mack. This strategy tends
to use mutual funds and may use exchange traded funds and unit investment trusts to attain portfolio
income in addition to potential stock market gain. The investments used and those that may be used in
this portfolio contain market risk and may lose capital if markets fall as well as if interest rates rise. It
is not unusual for this strategy to concentrate all of its assets in one to three securities. When used, the
unit investment trusts in this strategy typically mature after 12-15 months of inception. As these trusts
mature funds will normally, at the manager's discretion, be reinvested in new unit investment trusts or
mutual funds with similar goals. This strategy may also invest a portion of its balances into inverse
investments which may benefit by seeking gains in falling markets but could also lose in rising markets.
Dividend Leaders accounts may differ in their holdings on an account-by-account basis.
• Focused Aggressive: The Focused Aggressive portfolio is run by our President, Stephen W. Mack.
We use the terms Focused and Aggressive to describe this strategy. Focused means we may invest in a
very limited number of securities when invested and Aggressive means we may concentrate the
portfolio in investments that could be considered significantly riskier including commodities such as
gold and inverse investments which may benefit by seeking gains in falling markets. This strategy
attempts to utilize market sentiment and technical indicators including those that may point to elevated
risk when markets are relatively high and reduced risk when markets are relatively low. The strategy
implements risks in a globally invested allocation. At times, when sentiment is elevated for markets to
rise, Focused Aggressive may substantially reduce its exposure. Money markets and investments with
inverse relationships to markets are routinely used when risk is to be reduced. When sentiment is overly
negative, Focused Aggressive may increase its exposure to markets by increasing exposure to markets.
In addition, at times when our analysis indicates market trends may be moving lower, Focused
Aggressive may reduce exposure to markets. When our analysis indicates market trends may be moving
higher, Focused Aggressive may increase exposure to markets. We may vary from these strategies when
it is thought to be best for the portfolio. This strategy may remain in risk investments or money markets
for extended periods of time. Fees continue to be assessed as this strategy continues to be monitored for
the potential of a change to increased or reduced risk levels. The portfolio may invest in a wide range
of leading asset classes that may include domestic and foreign equity markets, commodities, stocks,
bonds, currency, and a variety of other asset classes. This is accomplished through the primary use of
Exchange Traded Funds ("ETFs") but may also include mutual funds, stocks, and bonds. This strategy
may include the use of leverage to increase exposure to markets. Leveraged mutual funds and ETFs
seek to deliver multiples of the performance of the index or benchmark they track and could magnify
any losses or gains. This strategy may also invest a portion of its balances into inverse investments
which may benefit by seeking gains in falling markets but could also lose in rising markets. Focused
Aggressive accounts may differ in their holdings on an account-by-account basis. Returns are not
published for this portfolio at this time.
• Strategic Models: The Strategic Aggressive and Conservative portfolios are run by our firm. The two
strategies attempt to consider mutual funds whose performance has shown more stability in falling
markets while participating in rising markets. The strategy also considers mutual funds whose
performance may indicate higher long-term returns. Peer performance is reviewed as part of the
selection process. At times, if management considers risk elevated, hedging strategies may be used. The
hedging strategies may include inverse mutual funds or exchange traded funds (ETFs), which typically
hold electronic futures and equity positions, in an effort to increase or decrease risk. Strategic
Aggressive will consider higher volatility funds as compared to Strategic Conservative. Funds may be
held in these mutual funds for extended periods. These strategies may include the use of leverage to
increase exposure to markets. Leveraged mutual funds and ETFs seek to deliver multiples of the
performance of the index or benchmark they track and could magnify any losses or gains. These
strategies may also invest a portion of their balances into inverse investments which may benefit by
seeking gains in falling markets but could also lose in rising markets. The investments used and those
that may be used in this portfolio contain market risk should be expected to lose capital when markets
fall as well as if hedging strategies are not successful. Strategic model accounts may differ in their
holdings on an account-by-account basis.
• Kelty Strategic Income: Kelty Strategic Income (KSI) is an investment strategy utilizing advice from
John Kelty, one of our investment advisor representatives (IAR) and a registered broker with Mack
Investment Securities, Inc., a FINRA registered broker-dealer. KSI examines current income
opportunities for its investors. Although the core goal of KSI is to attempt to take advantage of income
opportunities offered by taxable situations, KSI may also invest a portion of its funds into municipal and
growth and income securities. Most often, KSI invests into income-oriented exchange traded funds,
open and closed end mutual funds. Often these funds may use leverage to increase exposure to their
markets. Leveraged mutual funds seek to deliver multiples of the performance of the index or benchmark
they track and could magnify any losses or gains. As with any income securities, gains and losses may
be generated by interest rate changes. A decline in interest rates is often associated with gains in income-
oriented securities while an increase in interest rates is often associated with losses in income-oriented
securities. Investors should consider these risks prior to investing in this strategy. At times, KSI may
invest some or all of its investments into money markets to attempt to reduce potential declines in values
due to interest and credit market risks. KSI accounts may differ in their holdings on an account-by-
account basis.
• Kelty Municipal Income: Kelty Municipal Income (KMI) is an investment strategy utilizing advice
from John Kelty, one of our investment advisor representatives (IAR) and a registered broker with Mack
Investment Securities, Inc., a FINRA registered broker-dealer. KMI examines current income
opportunities concentrating on the municipal type for its investors. Although the core goal of KMI is to
attempt to take advantage of tax-free municipal income opportunities, KMI may also invest a portion
of its funds into taxable municipal obligations, taxable securities as well as growth and income
securities. Most often, KMI invests into income-oriented exchange traded funds, open and closed end
mutual funds. Often these funds may use leverage to increase exposure to their markets. Leveraged
mutual funds seek to deliver multiples of the performance of the index or benchmark they track.
Leverage used in mutual funds could magnify any losses or gains. Investors should consider as with
any income securities, gains and losses may be generated by interest rate changes. A decline in interest
rates is often associated with gains in income-oriented securities while an increase in interest rates is
often associated with losses in income-oriented securities. these risks prior to investing in this strategy.
At times, KMI may invest some or all of its investments into money markets to attempt to reduce
potential declines in values due to interest and credit market risks. KMI accounts may differ in their
holdings on an account-by-account basis.
• Kelty Growth & Income: Kelty Growth & Income (KGI) is an investment strategy utilizing advice
from John Kelty, one of our investment adviser representatives (IAR) and registered broker with Mack
Investment Securities., a FINRA registered broker-dealer. KGI examines growth and income
opportunities considering the goals, objectives, and input of a particular client. Most often, KGI invests
in global growth and income-oriented exchange traded funds, open and closed mutual funds. KGI's goal
is to moderate risk through a diversified approach. As with any securities, gains and losses may be
generated by investing in the market. This strategy may include the use of leverage to increase exposure
to markets. Leveraged mutual funds and ETFs seek to deliver multiples of the performance of the index
or benchmark they track and could magnify any losses or gains. This strategy may also invest a portion
of its balances into inverse investments which may benefit by seeking gains in falling markets but could
also lose in rising markets. Investors should consider these risks prior to investing in this strategy. At
times, KGI may invest some or all of its investments into money market to attempt to reduce potential
declines in values due to interest rate and credit risks. KGI account may differ in their holdings on
account-by-account basis.
• RPI Global: RPI Global is an investment strategy utilizing advice from Norman Chiodras, one of our
investment adviser representatives (IAR) and registered broker with Mack Investment Securities, Inc.,
a FINRA registered broker-dealer. The strategy seeks to take advantage of mid and long-term trends in
the broad stock market. The model can invest in a broad category of securities, including bonds,
emerging markets, foreign and domestic stocks, precious metals, and commodities. The strategy will
also hedge at times by moving to cash or purchasing mutual funds and exchange traded funds (ETFs)
which are designed to move in the opposite direction of the underlying sector. These investments
typically hold electronic futures and equity positions. Inverse ETFs (also called "short" funds) seek to
deliver the opposite of the performance of the index or benchmark they track. While these inverse
investments may benefit by seeking gains in falling markets, they could also lose in rising markets.
ETFs utilized may also be leveraged. Leveraged ETFs seek to deliver multiples of the performance of
the index or benchmark they track and could magnify any losses or gains. The goal of the strategy is to
attempt to increase exposure to equities in rising markets and decrease exposure in declining markets.
Investors in this strategy should expect the potential of higher volatility with frequent trading.
• RPI Precious Metals: RPI Precious Metals is an investment strategy utilizing advice from Norman
Chiodras, one of our investment adviser representatives (IAR) and registered broker with Mack
Investment Securities., a FINRA registered broker-dealer. The strategy seeks to take advantage of mid-
and long-term trends in gold and silver stock and metal prices. The model can concentrate investments
in precious metal mining companies as well as securities representing physical gold and silver. It may
also invest in ETFs representing physical gold, palladium, platinum, and silver. The strategy will also
hedge, at times, by moving to cash or purchasing inverse mutual funds and ETFs. Inverse ETFs (also
called "short" funds) seek to deliver the opposite of the performance of the index or benchmark they
track. While these inverse investments may benefit by seeking gains in falling markets, they could also
lose in rising markets. ETFs utilized may also be leveraged. Leveraged ETFs seek to deliver multiples
of the performance of the index or benchmark they track and could magnify any losses or gains.
Investors in this strategy should expect the potential of higher volatility with frequent trading.
SEI Investments Company (SEI) - SEI is a custodian utilized primarily by Norman Chiodras, one of
our investment adviser representatives (IAR) and a registered broker with Mack Investment Securities,
Inc., a FINRA registered broker-dealer. Mr. Chiodras actively trades these advisory accounts. Mr.
Chiodras' recommendations generally follow seasonality and cycle-based market trends. The advisory
accounts often maintain positions in precious metals and commodities. It is normal for Mr. Chiodras to
seek client agreement to trades prior to their placement. The preferred communication method for
agreement to trades is through email but may also be done by phone or mail. These communications
explain events that may cause the manager to proceed with trades already approved by email, phone, or
mail. It is possible that a significant amount of time may pass before approved changes in portfolios are
executed. Such timing is determined by the manager.
Variable Annuities - Strategies used in Modified Risk (see above for description) are often used to
increase or decrease market exposure in variable annuities advised by MIS. In addition, MIS may choose
manager strategies offered by the variable annuities as alternatives for investment. Variable annuities
are considered long-term investments and carry many types of fee structures. Prospectus should be
reviewed prior to purchasing these securities or implementing any investment strategy with these
products. Changes of investment strategies tend to be long term, and limited trading
activity is expected.
The below programs are run by Sub Advisors to our MMP Program:
Contravisory Strategic Equity Strategy: The objective of this technical strategy is capital
appreciation through a diversified portfolio of domestic equities. It attempts to outperform the S&P 500,
with a particular emphasis on outperforming during down markets. The approach is opportunistic, as
the portfolio's investments are not limited to set criteria involving market capitalizations and is agnostic
toward growth versus value stocks. Investment decisions result strictly from our proprietary research
methodologies, identifying and capitalizing on the long-term relative price trends, both positive and
negative, that exist in the market. This strategy is active and should be expected to cause realized gains
in taxable portfolios. It is not unusual to have 4-8 transactions in this account each month.
Merit: The Merit Advisors Multi-Sector Bond service is based on a disciplined risk-reduction strategy.
It uses a trend-following model that tracks day-to-day price changes in the Lipper High Yield Index,
which serves as a proxy for the high yield bond market. The model attempts to identify favorable periods
in the high yield market when accounts are invested in selected high yield bond funds. During declining
markets, accounts are positioned in money markets. The model does not attempt to forecast changes in
interest rates, credit risk or corporate profits. As an active model, this strategy typically generates 4 to 5
purchase and sale transactions (round trips) each year, investing in high yield and multi-sector bond
funds or money markets. Historically, the model has been invested in multi-sector, high-yield bonds or
other equivalent funds about 65% of the time and money markets the remaining 35%.
BTS Bond Asset Allocation is a tactical investment strategy that attempts to preserve capital and
enhance returns by allocating assets to what BTS believes is the bond sector producing the highest
current returns. To accomplish this, BTS uses proprietary and technical tools in its analysis and model,
derived from more than 40 years of operation and scrutiny. The principal strategy consists of investing
in mutual funds and ETFs holding three core asset classes: high yield bonds, government bonds, and
money markets. In certain situations, the strategy may invest in mutual funds and ETFs holding a
percentage of other bond classes (ie. International bonds, corporate bonds, municipal bonds). Certain
mutual funds and ETFs used in the strategy, when not in money market instruments, may be non-
diversified, hold derivatives and use leverage. Most often, BTS provides instructions to buy or sell either
high-yield bond mutual funds and/or ETFs. MIS may take suggestions for the securities to purchase or
choose securities it feels best fit the goals of the BTS choice.
BTS Seasonality/BAA. The goal of the Select Seasonality/Bond Asset Allocation Portfolio ("Select
Seasonality/BAA") is to take advantage of trends in the stock and high yield bond markets. The portfolio
aims to be invested in stock funds during the historically favorable portion of the year and out of stock
funds during the historically less favorable portion. When the portfolio is not invested in stocks, it moves
assets among high yield bond, government bond, and money market funds. Certain mutual funds and
ETFs used in the strategy, when not in money market instruments (as in the above BTS Bond Asset
Allocation strategy), may be non-diversified, hold derivatives, and use leverage. BTS uses a broad range
of market trend data, technical analysis, and economic factors to choose the sectors that BTS believes
will perform best in the current market environment. The historically favorable market period is
considered approximately November-April; the historically unfavorable market period is considered
approximately May-October. BTS may issue a buy or sell for Seasonality BAA outside of the
historically favorable and unfavorable periods when economic indicators or market situations dictate.
Capital Advisors 360: “The Risk Manager” or “TAAP” is a longer- term, tactically managed asset
allocation strategy employing index funds and exchange traded funds (ETFs). Exposure to asset classes
is unrestrained and determined by the readings of technical and fundamental market models. The
strategy offers signals provided by David D. Moenning, Chief Investment Officer of Heritage Capital
Research, an independent, privately owned, investment research firm located in the Denver area.
Heritage Capital Research is affiliated with Eastsound Capital Advisors, LLC, Eastsound, Washington.
Morningstar Managed Portfolios. Morningstar offers diversified, core portfolios employing a
research-driven asset allocation process and independent approach to selecting best-in-class active
managers. Mack Investment selects portfolios from active and passive offerings available to our firm
on the AXOS Advisor Services (“AXOS,” formerly E-Trade) multi-manager platform for its clients to
invest. Morningstar portfolios contain risk and may result in losses.
Through personal discussions with the client in which the client's goals and objectives are established,
we determine if the model portfolio is suitable to the client's circumstances. Once we determine the
suitability of the portfolio, the portfolio is managed based on the portfolio's goal, rather than on each
client's individual needs. Clients, nevertheless, can place reasonable restrictions on the types of
investments to be held in their account. Clients retain individual ownership of all securities.
Our investment recommendations are not limited to any specific product or service offered by a broker
dealer or insurance company and will generally include advice regarding the following securities:
• Exchange-listed securities
• Unit Investment Trusts
• Securities traded over the counter
• Corporate debt securities (other than commercial paper)
• Certificates of deposit
• Municipal securities
• Mutual fund shares
• Options contracts on securities
• Interests in partnerships investing in real estate
• Interests in partnerships investing in oil and gas interests
Because some types of investments involve certain additional degrees of risk, they will only be
implemented/recommended when consistent with the client's stated investment objectives, tolerance for
risk, liquidity, and suitability.
To ensure that our initial determination of an appropriate portfolio remains suitable and that the account
continues to be managed in a manner consistent with the client's financial circumstances, we will:
1. send periodic reminders to each Model Portfolio Management Services client requesting any updated
information regarding changes in the client's financial situation and investment objectives;
2. at least annually, contact each participating client to determine whether there have been any changes
in the client's financial situation or investment objectives, and whether the client wishes to impose
investment restrictions or modify existing restrictions;
3. be reasonably available to consult with the client; and
4. maintain client suitability information in each client file.
INDIVIDUAL PORTFOLIO MANAGEMENT
Our firm provides non-continuous asset management of client funds based on the individual needs of
the client. Through personal discussions in which goals and objectives based on the client's particular
circumstances are established, we develop the client's personal investment plan. We create and manage
a portfolio based on that plan. During our data-gathering process, we determine the client's individual
objectives, time horizons, risk tolerance, and liquidity needs. As appropriate, we may also review and
discuss a client's prior investment history, as well as family composition and background.
We manage these advisory accounts on a discretionary basis. Account supervision is guided by the
client's stated objectives (i.e., maximum capital appreciation, growth, income, or growth and income),
as well as tax considerations.
Clients may impose reasonable restrictions on investing in certain securities, types of securities, or
industry sectors.
Once the client's portfolio has been established, we review the portfolio periodically, and if necessary,
re-balance the portfolio, based on the client's individual needs.
Our investment recommendations are not limited to any specific product or service offered by a broker-
dealer or insurance company and will generally include advice regarding the following securities:
• Exchange-listed securities
• Securities traded over the counter
• Unit Investment Trusts
Because some types of investments involve certain additional degrees of risk, they will only be
recommended when consistent with the client's stated investment objectives, tolerance for risk, liquidity,
and suitability.
PENSION CONSULTING SERVICES
We also offer several advisory services separately or in combination. While the primary clients for these
services will be pension, profit sharing and 401(k) plans, we offer these services, where appropriate, to
individuals and trusts, estates, and charitable organizations. Pension Consulting Services are comprised
of four distinct services. Clients may choose to use any or all of these services.
Investment Policy Statement Preparation (hereinafter referred to as ''IPS''): We will meet with the
client (in person or over the telephone) to determine an appropriate investment strategy that reflects the
plan sponsor's stated investment objectives for management of the overall plan. Our firm does not
provide a written IPS. If a change is made whereby we offer an IPS, our firm may then prepare a written
IPS detailing those needs and goals, including an encompassing policy under which these goals are to
be achieved. The IPS may also list the criteria for selection of investment vehicles as well as the
procedures and timing interval for monitoring of investment performance.
Selection of Investment Vehicles: We assist plan sponsors in constructing appropriate investment
models. We will then review various mutual funds (both index and managed) as well as, in many cases,
alternative investments including money markets, CDs, and annuities to determine which investments
may be appropriate to implement the client's goals and or IPS. The number of investments to be
recommended will be determined by the client, based on the client's goals and or IPS.
Monitoring of Investment Performance: We monitor client investments continually, based on the
procedures and timing intervals requested by the plan sponsor or delineated in the Investment Policy
Statement. Although our firm may not be involved in any way in the purchase or sale of these
investments, we supervise the client's portfolio and may make recommendations to the client as market
factors and the client's needs dictate.
Employee Communications: For pension, profit sharing and 401(k) plan clients with individual plan
participants exercising control over assets in their own account (''self-directed plans''), we may also
provide periodic educational support and investment workshops designed for the plan participants. The
nature of the topics to be covered will be determined by us and the client under the guidelines established
in ERISA Section 404(c). The educational support and investment workshops will NOT provide plan
participants with individualized, tailored investment advice or individualized, tailored asset allocation
recommendations.
FINANCIAL PLANNING
We offer financial planning services. Financial planning is an evaluation of a client's current and future
financial state by using currently known variables to attempt to predict future cash flows, asset values
and withdrawal plans. Through the financial planning process, questions, information, and analysis are
considered as they impact and are impacted by the financial and life situation of the client. Clients
purchasing this service receive a written report which provides the client with a financial plan or
proposal designed to assist the client achieve his or her financial goals and objectives.
In general, the financial plan may address any or all of the following areas:
• PERSONAL: We often review family records, budgeting, personal liability, estate information and
financial goals.
• TAX & CASH FLOW: We may analyze the client's income tax and spending and planning for past,
current and future years; then illustrate the impact of various investments on the client's current
income tax and future tax liability.
• INVESTMENTS: We may analyze investment alternatives and their possible effect on the client's
portfolio.
• INSURANCE: We may review existing policies to ensure proper coverage for life, health, disability,
long-term care, liability, home, and automobile. It is normal for us to not comment nor provide
analysis in relation to many or all of these types of risks.
• RETIREMENT: We may analyze current strategies and investment plans to help the client achieve his
or her retirement goals.
• DEATH & DISABILITY: We may review the client's cash needs at death, income needs of surviving
dependents, estate planning and disability income.
• ESTATE: We may assist the client in assessing and developing long-term strategies, including as
appropriate, living trusts, wills, review estate tax, powers of attorney, asset protection plans, nursing
homes, Medicaid, and elder law.
It is normal for us to gather required information through in-depth personal interviews. Information
gathered includes the client's current financial status, tax status, future goals, returns objectives and
attitudes towards risk. We carefully review documents supplied by the client, including a questionnaire
completed by the client, and prepare a written report often including a list of recommendations. Should
the client choose to implement the recommendations, we may suggest the client work closely with
his/her attorney, accountant, insurance agent, and/or stockbroker. Implementation of financial planning
recommendations is entirely at the client's discretion. As part of our financial planning, we routinely
provide consolidated reports showing client's assets and liabilities. When these reports are provided to
clients, we seek input for any values not represented by our firm as agent or advisor. We remind clients
to verify all entries with custodial statements, the formal record of securities held in their accounts.
Consolidated reports are provided as a value-added service.
We may also provide general non-securities advice on topics that may include tax and budgetary
planning, estate planning and business planning.
Exchange-listed securities
• Securities traded over the counter
• Corporate debt securities (other than commercial paper)
• Certificates of deposit
• Municipal securities
• Unit Investment Trusts
• Mutual fund shares
• Options contracts on securities
• Futures contracts on tangibles
• Interests in partnerships investing in real estate
• Interests in partnerships investing in oil and gas interests
Typically, a financial plan and or report is presented to the client within six months of the contract date,
provided that all information needed to prepare the financial plan or report has been promptly provided.
The plan or report typically includes a detailed balance sheet, income and expense analysis and
recommended allocation of funds.
LIMITATIONS: As representatives of MIS are registered as representatives of a broker-dealer and/or as
insurance agents/brokers of various insurance companies, recommendations made in financial plans are
limited to only those products offered through these companies and assets directly related to the client's
financial plan such as a retirement plan not under the custody of MIS.
ADVISORY REFERRAL SERVICES
MIS may act as a solicitor on behalf of various independent registered investment advisers. Based on a
client's individual circumstances and needs, we will assist the client in determining which independent
adviser's portfolio management services may be appropriate for that client. Factors considered in making
this determination, including account size, risk tolerance, and a client's investment experience, are
discussed during our consultation with the client Mack Investment Securities, Inc. will meet with the
client on a periodic basis, or as determined by the client, to review the account. We may, when needed,
suggest changes in the client's portfolio ("reallocating" and/or ''re-balancing'') to more effectively
address each client's goals. The client may then instruct the independent adviser to make any or all of
the changes we recommended. These recommendations are our own and are neither recommended nor
approved by any independent advisers.
Any reallocating of the portfolio is done with the client's approval and will be reviewed and implemented
by the independent investment adviser. At the time of conducting the advisory solicitation, MIS will
ensure that all federal and/or state specific requirements governing solicitation activities are met.
PUBLICATION OF PERIODICALS
MIS publishes a periodic newsletter providing general information on various financial topics including,
but not limited to market conditions, estate and retirement planning, economic and fiscal trends. No
specific investment recommendations are provided in this newsletter and the information provided does
not purport to meet the objectives or needs of any individual. This newsletter is distributed free of charge
to our advisory clients.
MARKET TIMING SERVICES
MIS provides the management of individual clients' portfolios, rendering advice as to the advisability
of moving from one mutual fund to a defensive fund (within the same family of funds) in an attempt to
capture gains during rising market periods and to preserve the client's capital during falling market
periods. Our market timing service is of a continuous nature, evaluating holdings and market positions
on a periodic basis, most often monthly. We will attempt to move funds from one specific fund group
to a money market fund (within the same family if fees may otherwise be imposed) when the capital
improvement potentiality is in question. The funds may be switched back to the same type of fund only
when qualified factors indicate growth possibilities. Clients often use our advice to move their funds on
their own within a mutual fund family.
To effectively manage client funds, we request that each client provide the firm with discretionary
authority to effect conversions between mutual funds on the client's behalf. Our agreement authorizes
this authority. This authority may be used in both mutual fund families as well as variable annuities.
It is also noted that certain mutual funds allow for telephone or internet web-based switching services.
This is perhaps the quickest way in which to effect a transaction on the client's behalf. As such, our firm
may offer this service to a client, if the particular mutual fund or variable annuity under timing
consideration has provisions for telephone or internet web-based switching privileges. If market
conditions were to change rapidly, we may be able to assist our clients in achieving an acceptable return,
given the individual circumstances.
Our primary objective is to attempt to preserve and attempt to increase the aggregate capital funds of
clients with this as their goal.
CONSULTING SERVICES
Clients can also receive investment advice on a more focused basis. This may include advice on only an
isolated area(s) of concern such as estate planning, retirement planning, or any other specific topic. We
may also provide specific consultation and administrative services regarding investment and financial
concerns of the client.
Assignment. Neither MIS nor the client may assign the Investment Advisory Agreement or Financial
Planning and Consulting Agreement without the prior consent of the other party. Transactions that do
not result in a change of actual control or management of MIS shall not be considered an assignment.
MIS also advises on exchange-traded funds (ETF) and closed-end funds. In addition, MIS advises on
inverse ETFs which are leveraged long and short mutual funds that are designed to perform in an inverse
relationship to certain market indices. Due to the leverage component of the ETFs, there may be
additional risk to such investments.
Amount of managed assets.
As of 12/31/2023, we were actively managing $170,639,703 of clients' assets on a discretionary basis
plus $52,593,327 of clients' assets on a non-discretionary basis.