A. Description of the Advisory Firm
Conservest Capital Advisors, Inc. was founded in April, 1993, by Bruce E. Kardon, our
current President and Chief Investment Officer, as a boutique investment advisory and
financial planning firm to offer advisory services on a fee-only basis.
B. Types of Advisory Services
Investment services include, but are not limited to, the following: (i) interpreting
investment objectives and risk tolerance; (ii) asset selection and allocation; (iii) organizing,
administering to and regular monitoring of portfolio assets; (iv) developing and
documenting an individualized investment policy and investment strategy; and (v)
managing the investment process.
We offer ongoing portfolio management services based on individual goals, objectives,
time horizon, and unique risk-return characteristics of each client. We believe that
preserving and growing capital requires developing an individually customized and
managed portfolio for each client. Our investment approach requires careful and constant
consideration of returns and risks in a myriad of capital markets simultaneously.
We create an Investment Strategy for each client that outlines an investment strategy
matching each client's specific situation and provides a personalized approach to preserve
and grow their capital. Prior to the creation of a customized and detailed Investment Policy
Statement, we conduct an extensive interview. This interview is not a standard
questionnaire but an intensive process to obtain background information both personal and
financial. We believe it is important to understand a client thoroughly prior to developing
a customized response because no two clients are the same.
The interview process results in the development of a customized, detailed Investment
Strategy for each client that includes: client background, portfolio constraints, tax issues,
outside investment analysis, specific investment recommendations and expected risk and
return expectations. This initial blueprint presents the client’s financial situation and
objectives from which an asset allocation strategy is designed and implemented. We adapt
the strategy both to changes in client objectives and circumstances as well as changes in
the financial and economic landscape. We also discuss outside business and real estate
assets with our clients as well as tax projections and tax and estate implications of our
investment decisions.
At our discretion, and under certain circumstances or criteria, we create an abbreviated
Investment Policy Statement for our clients instead of a comprehensive, customized policy.
We utilize this type of Investment Policy Statement for certain clients for specific reasons
which include, but are not limited to, a client’s request, portfolio size, account composition
and cost effectiveness.
During the investment policy process, we look closely at historical returns from a variety
of capital markets to determine the most suitable asset allocation in each client’s account.
We then select the most appropriate investment vehicles in each market in accordance with
our asset allocation decisions. We are not limited in terms of investments and we allocate
our
client portfolios among various asset classes. This serves to both diversify assets we
manage and to achieve diversification within the context of the client’s total wealth
holdings, including business and real estate assets.
We focus on maintaining on-going communications with our clients, discussing many
issues involving investment policy and strategy. In addition, we provide quarterly reports
with in-depth analysis, which include performance of various segments of the investment
portfolio over a variety of time intervals, performance measured against comparative
indices, asset allocation and reconciliation, cash flow review, and an inventory of
investment holdings. Finally, ongoing investment policy and strategy are often discussed
with our clients.
Retirement Rollovers:
A client or prospective client leaving an employer typically has four options regarding an
existing retirement plan (and may engage in a combination of these options): (i) leave the
money in the former employer’s plan, if permitted, (ii) roll over the assets to the new
employer’s plan, if one is available and rollovers are permitted, (iii) roll over to an
Individual Retirement Account (“IRA”), or (iv) cash out the account value (which could,
depending upon the client’s age, result in adverse tax consequences). When Conservest
provides rollover advice to a client or prospect regarding a retirement plan account or
individual retirement account, Conservest is acting as a fiduciary within the meaning of
Title I of the Employee Retirement Income Security Act and/or the Internal Revenue Code,
as applicable, which are laws governing retirement accounts. If Conservest recommends
that a client roll over their retirement plan assets or transfer an IRA into an account to be
managed by Conservest, and Conservest may earn an advisory fee on the rolled over assets,
that recommendation creates a conflict of interest. Accordingly, Conservest operates under
a special rule that requires Conservest to act in the client’s or prospects’ best interest and
not put Conservest’s interest ahead of the client’s or prospects. No client is under any
obligation to roll over retirement plan assets or transfer IRA assets to an account managed
by Conservest. Conservest’s President, Bruce Kardon, remains available to address any
questions that a client or prospective client may have regarding the conflict of interest
presented by such rollover recommendation.
C. Client Tailored Services and Client Imposed Restrictions
We offer the same services to all clients. Clients may impose restrictions on investing in
certain securities or types of securities. Upon request, we will work with clients to
accommodate client specific restrictions on the investments or investment strategy we
select.
D. Wrap Fee Programs
Conservest Capital Advisors does not participate in wrap fee programs.
E. Assets Under Management
As of December 31, 2023, we had the following assets under management:
Assets Number of Clients
Discretionary
$ 1,696,549,903 289
Non-discretionary
None None
Total
$1,696,549,903 289
In addition, we have $ 14,777,989 in assets under advisement, to which we provide
advice and guidance to a number of our clients