WealthEdge Investment Advisors LLC (“WealthEdge”) is a SEC-registered investment
adviser with its principal place of business located in New York, New York.
Listed below are the firm's principal shareholders (i.e., those individuals and/or entities
controlling 25% or more of this company):
• Gerard Addeo, CPA, Managing Member
WealthEdge offers the following advisory services to our clients:
INDIVIDUAL PORTFOLIO MANAGEMENT
Our firm provides continuous and non-continuous asset management of client funds
based on the individual needs of the client. Through personal discussions in which goals
and objectives based on the client's particular circumstances are established, we
develop the client's personal investment policy. We create and manage a portfolio based
on that policy. During our data-gathering process, we determine the client’s individual
objectives, time horizons, risk tolerance, and liquidity needs. As appropriate, we may
also review and discuss a client’s prior investment history, as well as family composition
and background.
The investor’s objectives and constraints are maintained and reviewed periodically, at
least annually, to reflect any changes in the client’s circumstances.
We manage these advisory accounts on a discretionary basis. Account supervision is
guided by the client's stated objectives (i.e., maximum capital appreciation, growth,
balanced growth, balance, conservative and fixed income), as well as tax considerations.
Clients may impose reasonable restrictions on investing in certain securities, types of
securities, or industry sectors.
Once the client's portfolio has been established, we review the portfolio at least quarterly,
or when business or other reasons, such as a major change in market conditions, dictate
more frequent review.
Our investment recommendations are not limited to any specific product or service
offered by a broker-dealer or insurance company and will generally include advice
regarding the following securities:
• Exchange-listed securities
• Corporate debt securities (other than commercial paper)
• Commercial paper
• Certificates of deposit
• Municipal securities
• Mutual fund shares
• United States governmental securities
Because some types of investments involve certain additional degrees of risk, they will
only be implemented when consistent with the client's stated investment objectives,
tolerance for risk, liquidity and suitability.
MODEL PORTFOLIO MANAGEMENT
Our firm provides continuous portfolio management services to clients by implementing and
following model portfolios.
Generally our firm offers seventeen model portfolio types each targeting a different level of
downside risk and potential reward. Additional models may be developed depending upon
the client’s needs and objectives.
Here is a description of seventeen of our model portfolio types:
Core Satellite Conservative: The portfolio is designed to meet objectives of clients with a
conservative risk profile. Typically, this means that the investor is willing to accept a lower
level of volatility in order to achieve steady returns compared to models with higher risk.
Investors with shorter time horizons (1 to 3 years), moderate to high level of liquidity needs,
and a basic understanding of investment concepts, are best suited for a moderately
conservative allocation portfolio. The conservative portfolio has a lower allocation to stocks
(40%) when compared to our riskier investment models. Furthermore, it will have lower a to
tactical investments, such as sector ETFs, and no individual stocks in comparison to more
risky investment models. Risk in this portfolio is managed by diversification into multiple
asset classes and tactical shifts to safer classes when deemed necessary.
Core Satellite Moderately Conservative: The portfolio is designed to meet objectives of
clients with a moderately conservative risk profile. Typically, this means that the investor is
willing to accept a lower to moderate level of volatility in order to achieve steady returns
compared to our moderate allocation portfolio. Investors with shorter time horizons (2 to 4
years), moderate level of liquidity needs, and a basic understanding of investment concepts,
are best suited for a moderately conservative allocation portfolio. The moderately
conservative portfolio has a 50% allocation to stocks. Furthermore, it will have lower
exposure to tactical investments, such as sector ETFs, and no individual stocks in
comparison to more risky investment models. Risk in the portfolio is managed by
diversification into multiple asset classes and tactical shifts when deemed necessary
Core Satellite Moderate: The portfolio is designed to meet objectives of clients with a
moderate risk profile. Typically, this means that the investor is willing to accept a moderate
level of volatility in order to achieve higher returns compared to our conservative allocation
portfolio. Investors with medium to long time horizons (4 to 6 years), moderate to low level
liquidity needs, and some investment experience, are best suited for a moderate allocation
portfolio. The moderate portfolio has a 60% allocation to stocks. Furthermore, it will have an
exposure to tactical investments, such as sector ETFs, and individual stocks. Risk in the
portfolio is managed by diversification into multiple asset classes while still adhering to our
Moderate model.
Core Satellite Moderately Aggressive: The portfolio is designed to meet objectives of
clients with a moderately aggressive risk profile. Typically, this means that the investor is
willing to accept a moderate to high level of volatility compared to our more conservative
allocation portfolios. Investors with longer time horizons (5-7 years), low liquidity needs, and
a good understanding of investment concepts, are best suited for a moderately aggressive
allocation portfolio. The moderately aggressive portfolio has a 70% allocation to stock.
Furthermore, it will have a higher exposure to tactical investments, such as sector ETFs, and
individual stocks in comparison to more conservative investment models. Risk in the portfolio
is managed by diversification into multiple asset classes while still adhering to our Moderately
Aggressive model.
Core Satellite Aggressive: The portfolio is designed to meet the objectives of clients with
an aggressive risk profile. Typically, this means that the investor is willing to accept a high
level of volatility while prioritizing capital appreciation and growth. Investors with longer time
horizons (7+ years), low-level liquidity needs, and some investment experience are best
suited for an aggressive allocation portfolio. The aggressive portfolio has an 80% equity.
Furthermore, it will have a higher exposure to tactical investments, such as sector ETFs, and
individual stocks in comparison to less risky investment models.
Fixed Income ETF: The portfolio is designed to meet the objectives of clients with a
conservative risk profile. Typically, this means that the investor is willing to accept a lower
level of volatility in order to achieve steady returns compared to models with higher risk.
Investors with shorter time horizons (1 to 3 years), with a high level of liquidity needs, and a
basic understanding of investment concepts, are best suited for a fixed income allocation
portfolio. The fixed-income portfolio fully consists of fixed-income securities. Compared to
other WealthEdge models this strategy suits investors with a low-risk profile.
Conservative ETF: The portfolio is designed to meet the objectives of clients with a
conservative risk profile. Typically, this means that the investor is willing to accept a lower
level of volatility in order to achieve steady returns compared to models with higher risk.
Investors with shorter time horizons (1 to 3 years), moderate to high level of liquidity needs,
and a basic understanding of investment concepts, are best suited for a moderately
conservative allocation portfolio. The conservative portfolio has a lower allocation to stocks
(14%) when compared to our riskier investment models. Risk in this portfolio is managed by
diversification into multiple asset classes and tactical shifts to safer classes when deemed
necessary.
Moderate ETF: The portfolio is designed to meet the objectives of clients with a moderately
conservative risk profile. Typically, this means that the investor is willing to accept a lower to
moderate level of volatility in order to achieve steady returns compared to our moderate
allocation portfolio. Investors with shorter time horizons (2 to 4 years), a moderate level of
liquidity needs, and a basic understanding of investment concepts, are best suited for a
moderately conservative allocation portfolio. The moderately conservative portfolio has a
31% allocation to stocks. Furthermore, it will have lower exposure to tactical investments,
such as international ETFs. Risk in the portfolio is managed by diversification into multiple
asset classes and tactical shifts when deemed necessary.
Growth ETF: The portfolio is designed to meet the objectives of clients with a moderate risk
profile. Typically, this means that the investor is willing to accept a moderate level of volatility
in order to achieve higher returns compared to our conservative allocation portfolio.
Investors with medium to long time horizons (4 to 6 years), moderate to low-level liquidity
needs, and some investment experience, are best suited for a moderate allocation portfolio.
The growth portfolio has a 49% allocation to stocks. Furthermore, it will have exposure to
tactical investments, such as international ETFs. Risk in the portfolio is managed by
diversification into multiple asset classes while still adhering to our Growth model.
Aggressive ETF: The portfolio is designed to meet the objectives of clients with an
aggressive risk profile. Typically, this means that the investor is willing to accept a high level
of volatility while prioritizing capital appreciation and growth. Investors
with longer time
horizons (7+ years), low-level liquidity needs, and some investment experience are best
suited for an aggressive allocation portfolio. The aggressive portfolio has a 70% equity.
Furthermore, it will have a higher exposure to tactical investments, such as international
ETFs.
All Equity ETF: The portfolio is designed to meet the objectives of clients with an aggressive
risk profile. Typically, this means that the investor is willing to accept a high level of volatility
while prioritizing capital appreciation and growth. Investors with longer time horizons (7+
years), low-level liquidity needs, and some investment experience are best suited for an
aggressive allocation portfolio. The aggressive portfolio has a 100% equity. Furthermore, it
will have a higher exposure to tactical investments, such as international ETFs.
Fixed Income Mutual Funds: The portfolio is designed to meet the objectives of clients with
a conservative risk profile. Typically, this means that the investor is willing to accept a lower
level of volatility in order to achieve steady returns compared to models with higher risk.
Investors with shorter time horizons (1 to 3 years), with a high level of liquidity needs, and a
basic understanding of investment concepts, are best suited for a fixed income allocation
portfolio. The fixed-income portfolio fully consists of fixed-income securities. Compared to
other WealthEdge models this strategy suits investors with a low-risk profile.
Conservative Mutual Funds: The portfolio is designed to meet the objectives of clients with
a conservative risk profile. Typically, this means that the investor is willing to accept a lower
level of volatility in order to achieve steady returns compared to models with higher risk.
Investors with shorter time horizons (1 to 3 years), moderate to high level of liquidity needs,
and a basic understanding of investment concepts, are best suited for a moderately
conservative allocation portfolio. The conservative portfolio has a lower allocation to stocks
(14%) when compared to our riskier investment models. Risk in this portfolio is managed by
diversification into multiple asset classes and tactical shifts to safer classes when deemed
necessary.
Moderate Mutual Funds: The portfolio is designed to meet the objectives of clients with a
moderately conservative risk profile. Typically, this means that the investor is willing to accept
a lower to moderate level of volatility in order to achieve steady returns compared to our
moderate allocation portfolio. Investors with shorter time horizons (2 to 4 years), a moderate
level of liquidity needs, and a basic understanding of investment concepts, are best suited
for a moderately conservative allocation portfolio. The moderately conservative portfolio has
a 31% allocation to stocks. Furthermore, it will have lower exposure to tactical investments,
such as international MFs. Risk in the portfolio is managed by diversification into multiple
asset classes and tactical shifts when deemed necessary.
Growth Mutual Funds: The portfolio is designed to meet the objectives of clients with a
moderate risk profile. Typically, this means that the investor is willing to accept a moderate
level of volatility in order to achieve higher returns compared to our conservative allocation
portfolio. Investors with medium to long time horizons (4 to 6 years), moderate to low-level
liquidity needs, and some investment experience, are best suited for a moderate allocation
portfolio. The growth portfolio has a 49% allocation to stocks. Furthermore, it will have
exposure to tactical investments, such as international MFs. Risk in the portfolio is managed
by diversification into multiple asset classes while still adhering to our Growth model.
Aggressive Mutual Funds: The portfolio is designed to meet the objectives of clients with
an aggressive risk profile. Typically, this means that the investor is willing to accept a high
level of volatility while prioritizing capital appreciation and growth. Investors with longer time
horizons (7+ years), low-level liquidity needs, and some investment experience are best
suited for an aggressive allocation portfolio. The aggressive portfolio has a 70% equity.
Furthermore, it will have a higher exposure to tactical investments, such as international
MFs.
All Equity Mutual Funds: The portfolio is designed to meet the objectives of clients with an
aggressive risk profile. Typically, this means that the investor is willing to accept a high level
of volatility while prioritizing capital appreciation and growth. Investors with longer time
horizons (7+ years), low-level liquidity needs, and some investment experience are best
suited for an aggressive allocation portfolio. The aggressive portfolio has a 100% equity.
Furthermore, it will have a higher exposure to tactical investments, such as international
MFs.
Our objective is not to exceed our risk threshold targets in the vast majority of
environments, there is no guarantee that we will do so, and each investor should carefully
consider their portfolio strategy in light of their risk tolerance and the possibility that
losses could exceed our target levels.
Through personal discussions with the client in which the client's goals and objectives
are established, we initially determine whether the model portfolio is suitable to the
client's circumstances. Once we confirm suitability, the portfolio is managed based on
the portfolio's goal as well as each client's individual needs.
Clients retain individual ownership of all securities.
We manage these advisory accounts on a discretionary basis. Account supervision is
guided by the client's stated objectives (maximum growth, growth, balanced growth,
balanced and conservative), as well as tax considerations for Index-based models.
Once the client's portfolio has been established, we review a portfolio at least quarterly
or when business or other reasons, such as a major change in market conditions, dictate
more frequent reviews.
Our investment recommendations are not limited to any specific product or service
offered by a broker dealer or insurance company and will generally include advice
regarding the following securities:
• Exchange-listed securities (ETFs, index funds, and securities)
• Mutual fund shares
• Private equity
Because some types of investments involve certain additional degrees of risk, they will
only be implemented/recommended when consistent with the client's stated investment
objectives, tolerance for risk, liquidity and suitability.
To ensure that our initial determination of an appropriate portfolio remains suitable and
that the account continues to be managed in a manner consistent with the client's
financial circumstances, we will:
1. at least annually, contact each participating client to determine whether there
have been any changes in the client's financial situation or investment
objectives, and whether the client wishes to impose investment restrictions or
modify existing restrictions;
2. be reasonably available to consult with the client; and
3. maintain client suitability information in each client's file.
THIRD PARTY PORTFOLIO MANAGERS
WealthEdge has entered into agreements with third-party investment management firms
AssetMark (“AssetMark”), Manning & Napier Advisory Advantage Company, LLC
(“AAC”), Brinker Capital (“Brinker”), and Watts Capital Partners, LLC to provide model
portfolios designed to meet a particular asset allocation approach and specific
investment objectives.
Our firm utilizes the various platforms to access money managers that drive assets
allocations decisions. The manager lineup features institutional and boutique strategists
carefully selected based on their expertise in asset allocation, and how their philosophies
and strategies contribute to our purpose-built range of investment options.
We meet with the client to determine an appropriate investment strategy that reflects the
investment objectives and risk tolerance. We will select a written Investment Policy
Statement (“IPS”) detailing those needs and goals, including an encompassing policy
under which these goals are to be achieved. We will then review various money
managers to determine which are appropriate to implement the client's IPS and send the
request to allocate funds accordingly.
Once we confirm suitability, the portfolio is managed by a selected Portfolio Strategist
based on the portfolio's goal, rather than on each client's individual objectives. Clients,
nevertheless, have the opportunity to place reasonable restrictions on the types of
investments to be held in their account. These advisory accounts are managed on a
discretionary basis and clients retain individual ownership of all securities.
We monitor client investments continually. Although our firm is not involved in any way
in the purchase or sale of these investments, we supervise the client's portfolio and will
make recommendations to the client and/or change the money managers as market
factors and the client's needs dictate.
To ensure that the portfolio remains suitable and that the account continues to be
managed in a manner consistent with the client's financial circumstances, we will:
1. at least annually, contact each participating client to determine whether there
have been any changes in the client's financial situation or investment
objectives, and whether the client wishes to impose investment restrictions or
modify existing restrictions and send written request to the appropriate money
manager to update information regarding changes in the client's financial
situation and investment objectives
2. be reasonably available to consult with the client; and
3. maintain client suitability information in each client's file.
AMOUNT OF MANAGED ASSETS
As of December 2022, we were actively managing approximately $ 250,378,758.00 of
clients' assets all on a discretionary basis and $0.00 of clients' assets on a
nondiscretionary basis.