General Information
McBrearty Capital Management, Inc. was formed in 2000 and provides portfolio management and
general consulting services to its clients under the name Creekside Capital, Inc. ("Creekside Capital").
Martin T. McBrearty and Rachel J. Hacker are the principal owners of Creekside Capital. Please see
Brochure Supplements, Exhibit A, for more information on these principal owners and other
individuals who formulate investment advice and have direct contact with clients, or have discretionary
authority over client accounts.
As of December 31, 2022, Creekside Capital managed no assets on a discretionary basis, and
$190,907,326 of assets on a non-discretionary basis.
SERVICES PROVIDED
At the outset of each client relationship, Creekside Capital spends time with the client, asking
questions, discussing the client's investment experience and financial circumstances, and reviewing
options for the client. Based on its reviews, Creekside Capital generally develops with each client:
•a financial outline for the client based on the client's financial circumstances and goals, and the
client's risk tolerance level (the "Financial Profile" or "Profile"); and
•the client's investment objectives and guidelines (the "Investment Plan" or "Plan").
The Financial Profile is a reflection of the client's current financial picture and a look to the future goals
of the client. The Investment Plan outlines the types of investments Creekside Capital will recommend
on behalf of the client to meet those goals. The Profile and the Plan are discussed regularly with each
client, but are not necessarily written documents.
Where Creekside Capital provides general consulting services, Creekside Capital will work with the
client to prepare an appropriate summary of the specific project(s) to the extent necessary or advisable
under the circumstances.
Portfolio Management
As described above, at the beginning of a client relationship, Creekside Capital meets with the client,
gathers information and performs research and analysis as necessary to develop the client's
Investment Plan. The Investment Plan will be updated from time to time when requested by the client,
or when determined to be necessary or advisable by Creekside Capital based on updates to the
client's financial or other circumstances.
To implement the client's Investment Plan, Creekside Capital will manage the client's investment
portfolio on a non-discretionary basis. In such situations, clients must be contacted prior to the
execution of any trade in the account(s) under management. This may result in a delay in executing
recommended trades, which could adversely affect the performance of the portfolio. This delay also
normally means the affected account(s) will not be able to participate in block trades, a practice
designed to enhance the execution quality, timing and/or cost for all accounts included in the block. In
a non-discretionary arrangement, the client retains the responsibility for the final decision on all actions
taken with respect to the portfolio.
Notwithstanding the foregoing, clients may impose certain written restrictions on Creekside Capital in
the management of their investment portfolios, such as prohibiting the inclusion of certain types of
investments in an investment portfolio or prohibiting the sale of certain investments held in the account
at the commencement of the relationship. Each client should note, however, that restrictions imposed
by a client may adversely affect the composition and performance of the client's investment portfolio.
Each client should also note that his or her investment portfolio is treated individually by giving
consideration to each purchase or sale for the client's account. For these and other reasons,
performance of client investment portfolios within the same investment objectives, goals and/or risk
tolerance may differ and clients should not expect that the composition or performance of their
investment portfolios would necessarily be consistent with similar clients of Creekside Capital.
Separate Account Managers
When appropriate and in accordance with the Investment Plan for a client, Creekside Capital may
recommend the use of one or more Separate Account Managers, each a "Manager". Having access to
various Managers offers a wide variety of manager styles, and offers clients the opportunity to utilize
more than one Manager if necessary to meet the needs and investment objectives of the client.
Creekside Capital will recommend the Manager(s) it deems most appropriate for the client. Factors
that Creekside Capital considers in recommending Managers generally includes the client's stated
investment objective(s), management style, performance, risk level, reputation, financial strength,
reporting, pricing, and research.
The Manager(s) will generally be granted discretionary trading authority to provide investment
supervisory services for the portfolio. Creekside Capital will not terminate the Manager's relationship or
to add new Managers without specific client consent. With respect to assets managed by a Manager,
Creekside Capital's role will be to monitor the overall financial situation of the client, to monitor the
investment approach and performance of the Manager(s), and to assist the client in understanding the
investments of the portfolio.
In instances where the services of one or more Managers are utilized, the fee will be charged in
addition to Creekside Capital's fee.
Additionally, certain Managers may impose more restrictive account requirements than Creekside
Capital, billing practices may vary. In such instances, Creekside Capital may be required to alter its
corresponding account requirements and/or billing practices to accommodate those of the Manager(s).
Third Party Wrap Programs
From time to time and in accordance with the Investment Plan for a client, Creekside Capital may
utilize the separate account managers available in a Third Party Wrap Program. A Wrap Program is
one that charges one fee (the "wrap fee") for both the Manager's fee and the transaction expenses
incurred by the account. Creekside Capital's fee is charged separately from and in addition to the wrap
fee.
General Consulting
In
addition to the foregoing services, Creekside Capital may provide general consulting services to
clients. These services are generally provided on a project basis, and may include, without limitation,
minimal cash flow planning for certain events such as education expenses or retirement, estate
planning analysis, income tax planning analysis and review of a client's insurance portfolio, as well as
other matters specific to the client as and when requested by the client and agreed to by Creekside
Capital. The scope and fees for consulting services will be negotiated with each client at the time of
engagement for the applicable project.
Retirement Plan Advisory Services
Establishing a sound fiduciary governance process is vital to good decision-making and to ensuring
that prudent procedural steps are followed in making investment decisions. Creekside Capital will
provide Retirement Plan consulting services to Plans and Plan Fiduciaries as described below. The
particular services provided will be detailed in the consulting agreement. The appropriate Plan
Fiduciary(ies) designated in the Plan documents (e.g., the Plan sponsor or named fiduciary) will (i)
make the decision to retain our firm; (ii) agree to the scope of the services that we will provide; and (iii)
make the ultimate decision as to accepting any of the recommendations that we may provide. The Plan
Fiduciaries are free to seek independent advice about the appropriateness of any recommended
services for the Plan. Retirement Plan consulting services may be offered individually or as part of a
comprehensive suite of services.
The Employee Retirement Income Security Act of 1974 ("ERISA") sets forth rules under which Plan
Fiduciaries may retain investment advisers for various types of services with respect to Plan assets.
For certain services, Creekside Capital will be considered a fiduciary under ERISA. For example,
Creekside Capital will act as a fiduciary when providing non-discretionary investment advice to the
Plan Fiduciaries by recommending a suite of investments as choices among which Plan Participants
may select. Also, to the extent that the Plan Fiduciaries retain Creekside Capital to act as an
investment manager within the meaning of ERISA § 3(38), Creekside Capital will provide discretionary
investment management services to the Plan.
With respect to any account for which Creekside Capital meets the definition of a fiduciary under
Department of Labor rules, Creekside Capital acknowledges that both Creekside Capital and its
Related Persons are acting as fiduciaries. Additional disclosure may be found elsewhere in this
Brochure or in the written agreement between Creekside Capital and Client.
Fiduciary Consulting Services
Investment Selection Services
Creekside Capital will provide Plan Fiduciaries with recommendations of investment options consistent
with ERISA section 404(c). Plan Fiduciaries retain responsibility for the final determination of
investment options and for compliance with ERISA section 404(c).
Non-Discretionary Investment Advice
Creekside Capital provides Plan Fiduciaries and Plan Participants general, non-discretionary
investment advice regarding asset classes and investments.
Investment Monitoring
Creekside Capital will assist in monitoring the plan's investment options by preparing periodic
investment reports that document investment performance, consistency of fund management and
conformation to the guidelines set forth in the investment policy statement and Creekside Capital will
make recommendations to maintain or remove and replace investment options. The details of this
aspect of service will be enumerated in the engagement agreement between the parties.
Types of Investments
We typically offer advice on mutual funds, common stocks, individual bonds, separate account
managers, CDs and ETFs for client accounts. However, we may advise you on various types of
investments based on your stated goals and objectives. We may also provide advice on any type of
investment held in your portfolio at the inception of our advisory relationship. Refer to the Methods of
Analysis, Investment Strategies and Risk of Loss below for additional disclosures on this topic.
Since our investment strategies and advice are based on each client's specific financial situation, the
investment advice we provide to you may be different or conflicting with the advice we give to other
clients regarding the same security or investment.
IRA Rollover Recommendations
Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field
Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's
Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where applicable, we are providing the
following acknowledgment to you. When we provide 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 Security Act and/or the Internal Revenue Code, as applicable,
which are laws governing retirement accounts. The way we make money creates some conflicts 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. Under this special rule's provisions, we must:
•Meet a professional standard of care when making investment recommendations (give prudent
advice);
•Never put our financial interests ahead of yours when making recommendations (give loyal
advice);
•Avoid misleading statements about conflicts of interest, fees, and investments;
•Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
•Charge no more than is reasonable for our services; and
•Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account that we
manage or provide investment advice, because the assets increase our assets under management
and, in turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in
your best interest.