Firm Description
Matrix Asset Advisors, Inc. (“Matrix Asset Advisors” or “Matrix”) is an SEC-registered independent
investment advisory firm managing assets on behalf of institutions and individuals in equity and fixed
income strategies. Matrix dates its origins to 1986 when the company was co-founded by David A. Katz,
CFA and the late John M. Gates forming Value Matrix Management. In 1990 Mr. Katz merged The Value
Matrix Management organization into Matrix.
Principal Owners
Matrix Asset Advisors is 100% employee-owned by eight firm partners. The ownership structure as of
December 31, 2023, is as follows:
Name Title % Ownership
David A. Katz, CFA President & Chief Investment Officer 67.394%
Lon F. Birnholz Sr. Managing Director & Chief Financial Officer 16.445%
Steven G. Roukis, CFA Managing Director & Sr. Portfolio Manager 8.207%
Jordan F. Posner Managing Director & Sr. Portfolio Manager 7.685%
Stephan J. Weinberger, CFA Managing Director & Sr. Portfolio Manager 0.134%
Sherri Hurwitz Vice President & Head Equity Trader 0.045%
Lisa A. Mabel Vice President & Director of Client Relations 0.045%
Jonathan Tom, CFA Senior Vice President & Chief Operating Officer 0.045%
Types of Advisory Services
Matrix provides investment advisory services for individuals and institutions, including corporate
retirement plans which are subject to ERISA requirements. Matrix manages client assets according to the
Firm's philosophy while respecting a client's individual needs. Matrix offers a Large Capitalization Value
equity strategy and a Dividend Income (MDI) strategy that invests in equities with dividend rates that are
higher than those purchased in our typical equity portfolios to provide clients with a higher yielding
investment option. We also offer each of these strategies modified with an ESG (Environment, Social and
Governance) overlay. For clients desiring a conservative approach to fixed income investing, we provide a
high-quality (from an investment grade standpoint) taxable and/or tax-exempt Fixed Income strategy.
The equity investment philosophy is to add value through security selection and risk control. The security
selection system is based upon a disciplined and consistent application of quantitative and fundamental
analysis techniques. Portfolios are invested using a methodology designed to manage risk consistent with
each individual client’s requirements.
For clients seeking a comprehensive solution for managing all of their accumulated wealth, or simply a
more diversified approach across a broad variety of asset classes, with lower total variability compared to
overall equity markets, we offer the Matrix Complete Wealth Management (“MCWM”) program. MCWM
utilizes investment products from other asset managers for clients to gain investment exposure to asset
classes that Matrix does not have expertise in.
Clients typically have other assets invested in Matrix strategies outside of the MCWM program, including
separate accounts and Matrix advised mutual funds.
401(k) and Defined Contribution Plan Management
We provide several advisory services for corporate retirement plans, essentially serving as the
“quarterback” for the Plan as the primary point of contact, overseeing all aspects of the 401(k) program,
and coordinating with the other service providers. We partner with seasoned service providers to ensure
quality back-office operations and responsive participant service:
Sentinel Benefits & Financial Group - provides 401(k) plan administration and recordkeeping.
Charles Schwab & Co. - serves as a preferred custodian.
Pursuant to a Managed Account Sub-Advisory Agreement, Matrix utilizes the investment management
services of a Sub-Adviser, also an SEC-registered Investment Adviser, to manage plan assets for some
clients.
Tailored Relationships
Based upon an individual client's needs, accounts are tailored to consist of an equity strategy or strategies,
a fixed income strategy or strategies, mutual funds and/or ETFs or a combination of equity, fixed income,
mutual funds, and complementary strategies managed by external managers at a client's desired asset
allocation.
Retirement Account Advice
When we recommend investing in a mutual fund advised or sub-advised by Matrix or provide other
investment advice to you regarding your retirement plan account or individual retirement account, we are
fiduciaries within the meaning of Title I of the Employee Retirement Income Securities Act (“ERISA”)
and/or the Internal Revenue Code (“IRC”), as applicable, which are laws governing retirement accounts.
The receipt of our advisory fee
for making a recommendation creates a conflict of interest under
ERISA/IRC with your interests, so we operate under a special rule that requires us to act in your best interest
and not put our interest ahead of yours. For example, if we recommend that you roll over assets from one
retirement account to another and we receive increased compensation as a result of that recommendation,
we have a conflict that requires us to operate under this special rule.
Wrap Fee Programs
Certain individuals and entities become clients of Matrix Asset Advisors (the "Adviser") through their
participation in programs (each, a "Wrap Program") sponsored by multi-service financial institutions
unaffiliated with the adviser (each, a "Wrap Sponsor"). The Wrap Program Client, with the advice of the
Wrap Sponsor, chooses to receive the investment advisory services of the Adviser, and receives certain
other services provided by the Wrap Sponsor and/or entities affiliated with the Wrap Sponsor (such as
trading execution, custodial services and, in some cases, advisory services), for a single fee (the "Wrap
Fee").
It should be recognized that the advisory and other services provided to a Wrap Program Client might not
be available to the client other than through a Wrap Program. The Adviser has no ongoing responsibility to
assess for a Wrap Program Client the value of services provided by the Wrap Sponsor.
The Adviser typically will execute transactions for Wrap Program Clients through the Wrap Sponsor, which
could result in the Wrap Program Client's receipt of terms for particular trades less favorable in some
respects than the Adviser's clients whose trades are not executed through the Wrap Sponsor.
A Wrap Program Client may terminate its use of the adviser's services upon written notice to the Adviser
or the Wrap Sponsor as provided in the contract between the Wrap Sponsor and the Wrap Program Client
(each such contract, a "Client Contract"). In addition, as set forth in the Client Contract and/or the Master
Contract, the Adviser has the ability to cease to provide services to a Wrap Program Client. Finally, either
the Adviser or a Wrap Sponsor may terminate their Master Contract as provided in that document, in which
case the Adviser will cease to provide advisory services to all Wrap Program Clients of the Wrap Sponsor
as provided in the Master Contract. If a Wrap Program Client's account with the Adviser is terminated at
any time during a fee period, the Adviser will return to the Wrap Sponsor any prepaid but unearned advisory
fees received by the Adviser for refund to the Wrap Program Client.
"Unbundled" Wrap Fee Relationships have the potential to exist where broker-dealers have primary contact
with the Wrap Program Clients, and where the Adviser enters into an agreement directly with the Clients
to provide portfolio management. It is assumed that both the Wrap Sponsor and the Wrap Program Client
have determined the suitability of the investment approach.
Model Portfolio Services
Matrix has entered into agreements with certain registered third-party investment advisers that maintain
asset allocation platforms (“Platform Providers”). The Platform Providers offer model portfolios to other
investment advisers or broker-dealers (“Advisers”), who select from among the available models to invest
their clients’ assets. The platforms offer Matrix’s model portfolios, which consists of Matrix’s Large
Capitalization Value Equity and Dividend Income strategies, as well as models from other managers.
Advisers and their clients access Matrix’s models through these platforms. The Platform Providers do all
trading to invest accounts according to the model chosen for the account. When we recommend changes or
rebalances to the model portfolios, we will notify the Platform Providers promptly (typically after all other
trades are completed) so that they can adjust the portfolios of invested clients to fit the model. Matrix Asset
Advisors has no control over the actions or trading decisions of Platform Providers when we recommend
changes or rebalances to the models.
Client Assets
As of 12/312023 Matrix’s total assets were $1,128,466,450 representing assets under management of
$1,021,341,468 with 606 client relationships and 1,335 accounts, and assets under advisement of
$107,124,982 with 6 client relationships/accounts, which consists of assets as part of the advisory services
Matrix provides to corporate retirement plans, the consulting services provided to Moneypaper Advisor,
Inc., and those assets invested according to our model portfolios through UMA programs offered by third-
party Platform Providers.