Firm Description Family Management Corporation (“FMC”), established in 1989 by principals Seymour Zises and Andrea Tessler, is a New York-based SEC registered investment advisor serving high net worth individuals, families, and not-for-profit organizations. Together with our affiliates, Family Management Securities, LLC (“FMS”), a FINRA-registered broker-dealer, and Forest Hill Capital Corporation (“FHCC”), a New York State licensed insurance agent, we operate as a full- service wealth management firm providing our clients with highly personalized and comprehensive financial services. We recognize that financial needs vary and that there is no "one-size-fits-all" approach to financial advice. Rather, we provide each of our clients with a blend of customized services and an array of products tailored to their specific needs and goals. Clients may hire us to provide discretionary investment management services; clients may hire us because of our relationship with certain Third-Party Managers (defined herein); clients may even have their own managers or investments that they want us to monitor. In addition to our advisory services, we also provide our clients with traditional brokerage services (through FMS) and complete life insurance solutions (through FHCC). We coordinate and evaluate our clients' investments, their performance, and work to ensure that everything remains focused on their goals. FMC’s service to our client families goes beyond traditional investment advice. We take a deep, personal interest in our clients’ financial health and regularly work with non-affiliated banking, legal, tax and insurance specialists to create individualized solutions to meet our clients’ specific needs. Assets Under Management As of December 31, 2022, FMC was actively managing $3,155,272,313 in client assets. This total includes $3,117,125,374 of client assets managed on a discretionary basis plus $38,146,939 of client assets managed on a non-discretionary basis. Tailored Client Relationships Our client relationships begin with a discovery process that includes an in-depth dialogue to identify all the factors surrounding and defining our client's wealth. Information is gathered regarding the client's short and long-term goals, commitments, and concerns; the structure and amount of all the client's holdings; the client's exposure to, and tolerance for, risk; and an understanding of the client's life and disability coverage. We then work with the client to construct and implement a long-term asset allocation and investment strategy. We engage in an ongoing conversation with the client in the development of the asset allocation and investment strategy. This strategy will often involve a Third-Party Manager and their investment vehicle as well as FMC's discretionary investment management services. Once our recommendation of a long-term asset allocation and investment strategy is agreed upon by the client, we begin the management process. We review the client's overall portfolio on a continuous basis using market analysis tools and financial data and evaluate and consider adjustments in response to economic changes, market trends, and/or client needs. In addition to investment advice, our wealth management advisors may work closely with our client’s other specialist advisors, or we may suggest new third-party providers, for estate and income tax planning, tax effective wealth management, loans and mortgages, liability monitoring, personal concierge services, and philanthropic planning. Types of Advisory Services FMC advisory services may take different forms, depending on the needs of the client.
• Discretionary and Non-Discretionary Accounts: A client may hire FMC to provide discretionary investment management services. In these instances, the client generally opens a brokerage account with FMS for the purchase and sale of securities (e.g., stocks, bonds, mutual funds, etc.) which is done on a discretionary basis pursuant to an advisory agreement and any restrictions placed on the account by the client. In certain instances, advisory services may be provided by FMC in an account at other custodians/broker- dealers, such as Charles Schwab Corporation (“Schwab”). We may also enter into a non- discretionary agreement with a client on a negotiated basis.
• In-house Investment Model Strategies: FMC manages several in-house investment allocation models based on investment strategy risk tolerances.
• Third-Party Managers: In addition to managing the purchase and sale of securities in- house on a discretionary basis, we may recommend that the client engage a third-party to provide certain specialized asset management services (“Third-Party Manager”) or to invest in a Third-Party Manager's investment vehicle. FMC requires client authorization prior to investing with a Third-Party Manager.
• Turn-key Asset Manager Programs: In order to invest with certain asset managers, FMC utilizes Turn-key Asset Manager

Programs available through Lockwood / Pershing and Envestnet (referred to collectively as “TAMPs”, singularly as a “TAMP”) and may recommend client participation in one or more of the asset managers available through the TAMPs. FMC provides portfolio management services within the TAMPs by selecting asset managers available through the TAMPs for allocation of client assets. FMC requires client authorization prior to investing with a TAMP.
• Family Management Funds (“FM Funds”): FMC serves as the General Partner, and/or investment manager of funds, known collectively as the FM Funds, which may be available to FMC clients. Specifically, FM Fifth Avenue Fund, LP (“FM Fifth LP”) and FM Fifth Avenue Fund, Ltd. (FM Fifth Ltd.), (collectively “FM Fifth”) are hedge fund- of-funds. The purpose of the funds is to invest in private investment funds.
• Participant Account Management (Discretionary): FMC uses a third-party platform to facilitate management of held away assets such as defined contribution plan participant accounts, with discretion (“Held Away Accounts”). The platform allows FMC to avoid being considered to have custody of client funds since FMC does not have direct access to client log-in credentials. FMC is not affiliated with the platform in any way and receives no compensation from them for using their platform. A link will be provided to the client allowing them to connect an account(s) to the platform. Once the client account(s) is connected to the platform, FMC will review the current account allocations. When deemed necessary, FMC will rebalance the account considering client investment goals and risk tolerance, and any change in allocations will consider current economic and market trends.
• Class Actions: FMC engages Battea - Class Actions Services, LLC (“Battea”) to file and administer class action claims on behalf of the firm’s clients, to the extent securities held in the accounts of clients become the subject of class action lawsuits. Battea actively seeks out any open and eligible class action lawsuits and files, monitors and expedites the distribution of settlement proceeds. Clients are automatically included in this service but may opt-out by submitting an opt-out request in writing to FMC. If a client opts-out, FMC and Battea will not monitor class action filings for that client. FMC does not engage Battea to monitor class action filings for assets managed by Third-Party Managers, held in TAMPs or maintained by an outside custodian.
• Proxy Voting: FMC provides proxy voting services to our advisory clients who utilize Pershing LLC or Charles Schwab Corporation as their custodian. Securities held by Third-Party Managers or in TAMPs are not voted by FMC. Termination of an Advisory Relationship A client agreement may be cancelled at any time, by either party, for any reason upon 7 days written notice. Upon the termination of the agreement, FMC will not be under any obligation to recommend any action with regard to, or to liquidate, the assets in the account covered by the agreement. FMC retains the right, however, to complete any transactions open as of the termination date and to retain amounts in the account sufficient to affect such completion. Upon termination, it will be the client’s exclusive responsibility to issue written instructions regarding any assets held in the account. Clients with agreements dated after December 31, 2003, that terminate their client agreement but wish to retain their positions in Third-Party Manager(s) that have been selected and maintained by FMC, are required to pay an ongoing annual management fee of 1% to FMC after the termination of the advisory agreement. This fee is in respect of FMC’s introduction of the client to the Third-Party Manager(s) and covers our initial and continuing due diligence of the Third- Party Manager(s) and our negotiation with the Third-Party Manager(s) on the client's behalf. The fee is payable until the client liquidates the position(s) or until FMC ceases performing ongoing due diligence of the Third-Party Manager(s), whichever occurs sooner. The annual management fee can be higher or lower than the annual advisory fee, and is waived while the advisory agreement is in place. Clients investing in FM Fifth LP and FM Fifth Ltd. are subject to lock-up periods described in the offering documents for each fund. Generally, new clients investing in the FM Funds will be required to provide 100 days prior written notice of their intention to redeem capital from their investment and redemptions are limited to 5% of the total net asset value of their investment as of the initial redemption date, so a full redemption may only be accomplished over a 5 year period. Withdrawals from FM Fifth LP and FM Fifth Ltd. are available on March 31st, June 30th, September 30th, and December 31st of any given calendar year. Additional information on the liquidation of investments from the FM Funds can be found in the offering documents for each fund.