Signal Securities, Inc. (Signal) was established as a Broker‐Dealer in 1984 and purchased by current
majority owner and Chairman Jerry Singleton in 1987. In 2001, the Signal Securities, Inc. Advisory
Program was created to provide fee‐based asset management and financial planning for our clients.
Headquartered in downtown Fort Worth, Signal remains active as both a broker‐dealer1 and investment
advisor registered2 with the Securities and Exchange Commission. As of December 31,
2022, Signal managed $469,071,686 client assets on a non‐discretionary basis and $41,753,988 client
assets on a discretionary basis.
Signal’s Advisory Program adheres to the philosophy of managing risk thru diversification. As part of our
implementation and review process, we collect and analyze data concerning a Client’s financial situation
and assist the Client in the formulation and development of short and/or long‐ term individualized goals
and objectives. Upon analysis, we structure an investment plan seeking to minimize the Client’s risk for a
given level of expected return. In making our recommendations, we consider a Client’s individual needs
by evaluating their stated investment objectives, risk tolerance, investment philosophy, and financial
goals. Signal will work in partnership with the Client in selecting a suitable investment objective and
strategy to be followed.
Signal Securities Inc. offers different programs and allocations with differing risk levels and return
prospects for Clients to choose from. Listed below are Signal’s current investment advisory models:
Asset Allocation Model
Under the Asset Allocation Model, the firm uses a consultative, non‐discretionary advisor approach. Using
the firm’s Client Information Worksheet and Investment Policy Statement, Signal’s investment
advisory representative (IAR) gathers information about the client’s goals and investment risk tolerance.
Based on the information gathered from the questionnaire, the IAR will
recommend one of Signal’s five model portfolios. These portfolios include Conservative Income,
1 Signal Securities, Inc. is a Member of the Financial Industry Regulatory Authority (FINRA) and Securities
Investors Protection Corporation (SIPC)
2 Signal Securities, Inc. is a registered investment adviser. Registration of an Investment Adviser does not imply any level of skill
or training.
Income, Conservative Growth, Growth, and Aggressive Growth. The fixed income portion of the portfolio
will be allocated by maturity length and tax status. Signal defines these maturity terms as money market,
short term, intermediate term, and long term. The IAR will recommend that this fixed income portion be
invested in taxable or non‐taxable funds based on the client’s tax situation. The equity portion will be
allocated by asset class and management style. Signal defines the asset classes as small‐cap, mid‐cap,
large‐cap and international. The management styles considered are growth and value.
Signal has prescreened a list of no‐load or load waived funds for each section of a recommended portfolio.
The IAR will analyze the client’s objectives and risk tolerance when recommending one or more of the
approved funds for each part of the allocation. The proposed allocation will seek to balance the client’s
long‐term investment objectives with his or her means and risk tolerances as part of a long‐term
investment strategy. Upon review of the allocation, the client is given the right to impose reasonable
restrictions on the management of their account. Upon acceptance of the recommended portfolio, the
client will sign the Signal Securities, Inc. Investment Advisory Agreement. The minimum household
aggregate account size for Signal’s Asset Allocation Models is $25,000.
Private Client Asset Management Model
Under the Private Client Asset Management Model, the firm uses a consultative, non‐discretionary advisor
approach. Using the firm’s Client Information Worksheet the IAR gathers information about the client’s
goals and investment risk tolerance. Based on the information gathered from the questionnaire, the IAR
will recommend a mix of investments that seek to balance the client’s objectives with his or her means
and risk tolerances as part of a long‐term investment strategy. These recommendations may include, but
are not limited to, assets such as individual stocks and bonds, open‐end mutual funds, closed‐end mutual
funds, partnerships, annuities, unit investment trusts, money market instruments, and certificates of
deposit. Signal and the IAR will affect only transactions where client consent has been
given. The
minimum account size is $100,000.
Separately Managed Accounts (SMA)
Signal Securities, Inc. participates in the Charles Schwab managed account program. Signal offers
separately managed accounts from the Managed Account Select (Select) and Managed Account Access
(Access) programs. These Schwab programs allow access to independent money management firms
offered by the Schwab Advisor Services division of Charles Schwab & Co. Inc. Our firm performs
management searches of various investment managers. Based on the client's individual circumstances and
we determine which selected manager's portfolio management style is appropriate for that client. Factors
considered in making this determination include account size, risk tolerance, the objectives of each client
and the investment philosophy of the selected manager. Clients should refer to the manager's Firm
Brochure or other disclosure document for a full description of the services offered. Signal will furnish a
copy of the disclosure brochures for each manager selected. Signal will recommend one or more
managers who will manage the client's account on a discretionary basis. On an ongoing basis, we monitor
the performance of the manager(s).
Discretionary Asset Allocation Model Portfolio Program
Under the Discretionary Asset Allocation Model Program, the firm uses a discretionary trading approach.
This means Signal will place trades without contacting you before each trade. Using the firm’s Client
Information Worksheet and Investment Policy Statement, Signal’s investment advisory representative
(IAR) gathers information about the client’s goals and investment risk tolerance. Based on the
information gathered from the questionnaire, the IAR will recommend one of Signal’s four discretionary
model portfolios. These portfolios include Income, Conservative Growth, Growth, and Aggressive
Growth. The Income model is recommended for clients seeking current income from taxable fixed
income interest and equity dividends. The income model does contain a stock allocation to help ensure
the portfolio can keep pace with inflation. The growth models focus on total return. Signal’s growth
models contain significant stock exposure and are designed for long term investors. The growth models
have progressively more equity exposure along the continuum from Conservative Growth to Growth to
Aggressive Growth. Investments selected for portfolio inclusion will be invested in diversified portfolio
using investment vehicles such as ETF’s and Mutual Funds. The portfolio models each have a target
equity range varied at Signal’s discretion. Signal considers technical, fundamental, and economic factors
when varying the portfolio models. The model portfolio target allocations are as follows:
Income Model – 20% to 35% equities.
Conservative Growth – 50% to 70% equities
Growth – 60% to 80% equities
Aggressive Growth – 80% to 100% equities
The client is given the right to impose reasonable restrictions on the management of their
account. Upon acceptance of the recommended portfolio, the client will sign the Signal Securities, Inc.
Investment Advisory Agreement. There is no minimum account size for Signal’s Discretionary Asset
Allocation program. If clients choose to invest an amount that is too small to implement a portfolio
model those funds will be invested as follows:
Income Model clients will be placed into a single fixed income investment.
Any Growth model client will be placed into a single large cap growth investment.
Clients in this program that deposit an amount small too small to fully implement are expected to
systematically invest funds so that full investment implementation can proceed. By not imposing a
minimum account size Signal is providing smaller deposit customers access to an investment advisor
representative.
401k Optimizer
Signal Securities 401k Optimizer plans are established for clients seeking professional management of
individual accounts held inside company‐sponsored 401k plans. The goal of our service is to maximize
returns utilizing existing investments specific to each plan, while protecting invested assets from undue
risk. Each account managed by Signal is discretionary in nature. Assets are selected and allocated
according to information obtained from the client Investment Profile Questionnaire.
Flat Fee Planning
Signal Securities, Inc. or one of its Investment Adviser Representatives may charge a flat fee for the
creation of a financial plan or asset review. This may be performed after receiving the written permission
of Signal Securities management.