Ascendant Financial Solutions, Inc. (“Ascendant”) is an investment advisory firm offering a variety of
advisory services customized to your individual needs. Ascendant was created in 1996 and is owned by
Heffernan Insurance Brokers. Michael F. Heffernan is the primary owner of Heffernan Insurance Brokers.
James D. Hoyt, CPWA®, CFS® is Ascendant’s President and Chief Compliance officer .
Ascendant offers the following advisory services. Each of the services is more fully described below.
• Investment By Design™, an Asset Management Program
• Financial Planning and Consulting Services
Ascendant tailors the advisory services it offers to your individual needs. You may impose restrictions
and/or limitations on investing in certain securities or types of securities.
Investment By Design™
After evaluating the information that you provide, Ascendant will determine which of its model
portfolio(s) is most suitable for you. Ascendant can customize your portfolio allocation by taking into
consideration your limitations or restrictions, the market and economy at the time, and your financial
situation, goals, and objectives.
Ascendant primarily uses open‐ended mutual funds (no‐load and load waived, or mutual funds purchased
at net asset value [NAV]) and exchange traded funds (ETFs). However, managed accounts are not
exclusively limited to mutual funds and ETFs and can include stocks and bonds which are typically
transferred into your account or requested by you.
Except for IRA accounts, 403(b) accounts, and other qualified retirement accounts, transactions, account
reallocations, and rebalancing may trigger a taxable event.
Ascendant provides continuous and ongoing management of your account. Ascendant will manage your
accounts on a discretionary basis; this means Ascendant will make changes to the allocation as deemed
appropriate by Ascendant. Ascendant will also determine the securities to be purchased and sold in the
account and will alter the securities holdings, without prior consultation with you. Ascendant may actively
trade securities and hold them for periods of 30 days or less or maintain positions for longer periods.
Discretionary authority is granted by you to Ascendant by execution of the Investment Advisory
Agreement.
As described in the Brokerage Practices Section, Ascendant has a relationship to offer you brokerage and
custodial services through Schwab Advisor Services, a division of Charles Schwab & Co., Inc. (“Schwab”)
and on a limited basis with Fidelity Investments, LLC. (“Fidelity”). Services at Fidelity are limited to
participants in specific workplace savings plans. There is no affiliation between Ascendant and Schwab or
Fidelity.
If you select another brokerage firm for custodial and/or brokerage services, you will not be able to
participate in Ascendant’s Investment By Design™ program. Advisory representatives registered with
Ascendant are dually registered with a broker/dealer, Gĕneos Wealth Management, Inc., member FINRA
and SIPC (“Gĕneos”). Advisory Representatives must adhere to FINRA rules and regulations and the
policies and procedures of Gĕneos. Gĕneos policies and procedures and FINRA have a rule that prohibits
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representatives from conducting transactions at a broker/dealer for which approval has not been
obtained from Gĕneos.
Financial Planning and Consulting Services
Ascendant offers financial planning to help clients clarify and determine their financial goals through
investments, retirement planning, asset allocation recommendations, estate planning, and other areas.
We provide issue specific financial planning such as retirement planning or asset allocation as well as
comprehensive financial plans that focus on a client’s overall financial situation. Ascendant does not serve
as a law firm or accounting firm, and no portion of our services should be construed as legal or accounting
services. Accordingly, Ascendant does not prepare estate‐planning documents or tax returns.
As part of our financial planning services, and to the extent requested by a client, Ascendant may
recommend the services of other professionals for implementation purpose (i.e. attorneys, accountants,
insurance agents, etc.), including representatives of Ascendant in their separate capacities as registered
representatives of Gĕneos and as licensed insurance agents. Please see below and at Item 10 for further
details regarding this arrangement and corresponding conflicts of interest. The client is under no
obligation to engage the services of any such recommended professional. The client retains absolute
discretion over all such implementation decisions and is free to accept or reject any recommendation
from Ascendant and/or its representatives.
General Information
You should coordinate and discuss the impact of financial advice with your attorney and/or accountant.
You are advised that it is necessary to inform Ascendant promptly in writing with any changes in your
financial situation and investment goals and objectives. Failure to notify Ascendant of any such changes
could result in investment recommendations not meeting your needs.
Miscellaneous
Limitations of Financial Planning and Non‐Investment Consulting/Implementation Services
To the extent requested by the client, Ascendant will generally provide financial planning and related
consulting services regarding non‐investment related matters, such as tax and estate planning, insurance,
etc. Ascendant will generally provide such consulting services inclusive of its advisory fee set forth at Item
5 below (exceptions do occur based upon assets under management, special projects, stand‐alone
planning engagements, etc., for which Firm may charge a separate or additional fee‐see Financial Planning
and Consulting Services Fees at Item 5 below). Please Note. Ascendant believes that it is important for
the client to address financial planning issues on an ongoing basis. Ascendant’s percentage advisory fee,
as set forth at Item 5 below, will remain the same regardless of whether or not the client determines to
address financial planning issues with Ascendant.
Please Also Note: Ascendant does not serve as a law firm or accounting firm, and no portion of our
services should be construed as same. Accordingly, Ascendant does not prepare legal documents or
prepare tax returns. To the extent requested by a client, we may recommend the services of other
professionals for non‐investment implementation purpose (i.e. attorneys, accountants, insurance, etc.),
including representatives of Ascendant in their separate individual capacities as Investment adviser
representatives and or registered representatives of Gĕneos, an SEC registered and FINRA member
broker‐dealer, and as licensed insurance agents. The client is under no obligation to engage the services
of any such recommended professional. The client retains absolute discretion over all such
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implementation decisions and is free to accept or reject any recommendation from Ascendant and/or its
representatives.
Please Further Note: If the client engages any professional (i.e. attorney, accountant, insurance agent,
etc.), recommended or otherwise, and a dispute arises thereafter relative to such engagement, the client
agrees to seek recourse exclusively from the engaged professional. At all times, the engaged licensed
professional(s), and not Ascendant, shall be responsible for the quality and competency of the services
provided.
Client Obligations
In performing our services, Ascendant shall not be required to verify any information received from the
client or from the client’s other professionals and is expressly authorized to rely thereon. Moreover, it
remains each client’s responsibility to promptly notify Ascendant if there is ever any change in his/her/its
financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous
recommendations and/or services.
Please Note: Conflict of Interest
The recommendation by an Ascendant representative that a client purchase a securities or insurance
commission product from an Ascendant representative in his/her individual capacity as a representative
of Gĕneos and/or as an insurance agent, presents a conflict of interest, as the receipt of commissions
provides an incentive to recommend products based on commissions to be received, rather than on a
particular client’s need. In addition, certain Ascendant representatives who are also registered
representatives of Gĕneos are eligible to receive paid travel and attendance at industry conferences,
based on overall production. This presents a further conflict of interest, as the recommendation to
purchase an investment product through an Ascendant representative could be made on the basis of
increasing overall production level and obtaining these travel benefits, rather than basing such
recommendation on a particular client’s needs. No client is under any obligation to purchase any securities
or insurance commission products from an Ascendant representative. Clients are reminded that they may
purchase securities and insurance products recommended by Ascendant through other, non‐affiliated
broker‐dealers and/or insurance agencies. ANY QUESTIONS: Ascendant’s Chief Compliance Officer,
James D. Hoyt, CPWA®, CFS®, remains available to address any questions that a client or prospective
client may have regarding the above conflicts of interest.
Please Note: Retirement Rollovers‐Potential for Conflict of Interest
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). If
Ascendant recommends that a client roll over their retirement plan assets into an account to be managed
by Ascendant, such a recommendation creates a conflict of interest if Ascendant will earn new (or increase
its current) compensation as a result of the rollover. If Ascendant provides a recommendation as to
whether a client should engage in a rollover or not (whether it is from an employer’s plan or an existing
IRA), Ascendant 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. No client is under any obligation to roll over retirement plan assets to an account managed
by Ascendant, whether it is from an employer’s plan or an existing IRA. Ascendant’s Chief Compliance
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Officer, James D. Hoyt, CPWA®, CFS®, remains available to address any questions that a client or
prospective client may have regarding the potential for conflict of interest presented by such rollover
recommendation.
Custodian Charges‐Additional Fees
As discussed in Item
12 below, when requested to recommend a broker‐dealer/custodian for client
accounts, Ascendant generally recommends that Schwab serve as the broker‐dealer/custodian for client
investment management assets. Ascendant may also recommend that Fidelity serve as the broker‐
dealer/custodian, primarily for participants in specific workplace savings plans. Broker‐dealers such as
Schwab and Fidelity charge transaction fees for effecting certain securities transactions (i.e., including
transaction fees for certain mutual funds, and mark‐ups and mark‐downs charged for fixed income
transactions, etc.). The types of securities for which transaction fees, commissions, and/or other type fees
(as well as the amount of those fees) shall differ depending upon the broker‐dealer/custodian. While
certain custodians, including Schwab and Fidelity, generally (with the potential exception for large orders)
do not currently charge fees on individual equity transactions (including ETFs), others do. Please Note:
there can be no assurance that Schwab and/or Fidelity will not change their transaction fee pricing in the
future. Please Also Note: Fidelity and Schwab may also assess fees to clients who elect to receive trade
confirmations and account statements by regular mail rather than electronically. In addition to
Ascendant’s investment advisory fee referenced in Item 5 below, the client shall also incur transaction
fees to purchase certain securities for the client’s account (primarily mutual funds). ANY QUESTIONS:
Ascendant’s Chief Compliance Officer, James D. Hoyt, CPWA®, CFS®, remains available to address any
questions that a client or prospective client may have regarding the above.
Please Also Note: In addition to Ascendant’s investment advisory fee described below, and transaction
and/or custodial fees discussed above, clients will also incur, relative to all mutual fund and exchange
traded fund purchases, charges imposed at the fund level (e.g. management fees and other fund
expenses). ANY QUESTIONS: Ascendant’s Chief Compliance Officer, James D. Hoyt, CPWA®, CFS®,
remains available to address any questions that a client or prospective client may have regarding the
above, including DFA.
Cybersecurity Risk
The information technology systems and networks that Ascendant and its third‐party service providers
use to provide services to Ascendant’s clients employ various controls, which are designed to prevent
cybersecurity incidents stemming from intentional or unintentional actions that could cause significant
interruptions in Ascendant’s operations and result in the unauthorized acquisition or use of clients’
confidential or non‐public personal information. Clients and Ascendant are nonetheless subject to the risk
of cybersecurity incidents that could ultimately cause them to incur losses, including for example: financial
losses, cost and reputational damage to respond to regulatory obligations, other costs associated with
corrective measures, and loss from damage or interruption to systems. Although Ascendant has
established its systems to reduce the risk of cybersecurity incidents from coming to fruition, there is no
guarantee that these efforts will always be successful, especially considering that Ascendant does not
directly control the cybersecurity measures and policies employed by third‐party service providers. Clients
could incur similar adverse consequences resulting from cybersecurity incidents that more directly affect
issuers of securities in which those clients invest, broker‐dealers, qualified custodians, governmental and
other regulatory authorities, exchange and other financial market operators, or other financial
institutions.
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Portfolio Activity
Ascendant has a fiduciary duty to provide services consistent with the client’s best interest. As part of its
investment advisory services, Ascendant will review client portfolios on an ongoing basis to determine if
any changes are necessary based upon various factors including, but not limited to, investment
performance, fund manager tenure, style drift, account additions/withdrawals, and/or a change in the
client’s investment objective. Based upon these factors, there may be extended periods of time when
Ascendant determines that changes to a client’s portfolio are neither necessary nor prudent. Clients
nonetheless remain subject to the fees described in Item 5 below during periods of account inactivity. Of
course, as indicated below, there can be no assurance that investment decisions made by Ascendant will
be profitable or equal any specific performance level(s).
Please Note: Investment Risk
Different types of investments involve varying degrees of risk, and it should not be assumed that future
performance of any specific investment or investment strategy (including the investments and/or
investment strategies recommended or undertaken by Ascendant) will be profitable or equal any specific
performance level(s).
Please Note: Cash Positions. Ascendant continues to treat cash as an asset class. As such, unless
determined to the contrary by Ascendant, all cash positions (money markets, etc.) shall continue to be
included as part of assets under management for purposes of calculating Ascendant’s advisory fee. At any
specific point in time, depending upon perceived or anticipated market conditions/events (there being no
guarantee that such anticipated market conditions/events will occur), Ascendant may maintain cash
positions for defensive purposes. In addition, while assets are maintained in cash, such amounts could
miss market advances. Depending upon current yields, at any point in time, Ascendant’s advisory fee could
exceed the interest paid by the client’s money market fund. ANY QUESTIONS: Ascendant’s Chief
Compliance Officer, James D. Hoyt, CPWA®, CFS®, remains available to address any questions that a
client or prospective may have regarding the above fee billing practice
Socially Responsible Investing Limitations
Socially Responsible Investing involves the incorporation of Environmental, Social and Governance
considerations into the investment due diligence process (“ESG”). There are potential limitations
associated with allocating a portion of an investment portfolio in ESG securities (i.e., securities that have
a mandate to avoid, when possible, investments in such products as alcohol, tobacco, firearms, oil drilling,
gambling, etc.). The number of these securities may be limited when compared to those that do not
maintain such a mandate. ESG securities could underperform broad market indices. Investors must accept
these limitations, including potential for underperformance. Correspondingly, the number of ESG mutual
funds and exchange traded funds are few when compared to those that do not maintain such a mandate.
As with any type of investment (including any investment and/or investment strategies recommended
and/or undertaken by Ascendant), there can be no assurance that investment in ESG securities or funds
will be profitable or prove successful.
Account Aggregation Platforms
Ascendant may provide its clients with access to one or more online account aggregation platform (the
“Platforms”). The Platforms allow a client to view their complete asset allocation, including those assets
that Ascendant does not manage (the “Excluded Assets”). Ascendant does not provide investment
management, monitoring, or implementation services for the Excluded Assets. Unless otherwise
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specifically agreed to, in writing, Ascendant’s service relative to the Excluded Assets is limited to reporting
only. Therefore, Ascendant shall not be responsible for the investment performance of the Excluded
Assets. Rather, the client and/or their adviser(s) that maintain management authority for the Excluded
Assets, and not Ascendant, shall be exclusively responsible for such investment performance. Without
limiting the above, Ascendant shall not be responsible for any implementation error (timing, trading, etc.)
relative to the Excluded Assets. The client may choose to engage Ascendant to manage some or all of the
Excluded Assets pursuant to the terms and conditions of an Investment Advisory Agreement between
Ascendant and the client. Certain of these Platforms also provide access to other types of information and
applications including financial planning concepts and functionality, which should not, in any manner
whatsoever, be construed as services, advice, or recommendations provided by Ascendant. Finally,
Ascendant shall not be held responsible for any adverse results a client may experience if the client
engages in financial planning or other functions available on the Platforms without Ascendant’s assistance
or oversight.
Please Note: Use of DFA Mutual Funds
Ascendant utilizes the mutual funds issued by Dimensional Fund Advisors (“DFA”). DFA funds are generally
only available through registered investment advisers approved by DFA. Thus, if the client was to
terminate Ascendant’s services, and transition to another adviser who has not been approved by DFA to
utilize DFA funds, restrictions regarding additional purchases of, or reallocation among other DFA funds,
will generally apply.
Please Note: Use of Mutual and Exchange Traded Funds
Most mutual funds and exchange traded funds are available directly to the public. Thus, a prospective
client can obtain many of the funds that may be utilized by Ascendant independent of engaging Ascendant
as an investment advisor. However, if a prospective client determines to do so, he/she will not receive
Ascendant’s initial and ongoing investment advisory services.
Trustee Directed Plans
Ascendant may be engaged to provide discretionary investment advisory services to ERISA retirement
plans, whereby the Firm shall manage Plan assets consistent with the investment objective designated by
the Plan trustees. In such engagements, Ascendant will serve as an investment fiduciary as that term is
defined under The Employee Retirement Income Security Act of 1974 (“ERISA”). Ascendant will generally
provide services on an “assets under management” fee basis per the terms and conditions of a written
agreement between the Plan and the Firm.
Gĕneos Investment Adviser Representatives
Ascendant investment adviser representatives also serve as investment adviser representatives of
Gĕneos, in Gĕneos’ separate registered capacity as an SEC investment adviser. When serving as
investment adviser representatives of Gĕneos (generally, with exception, for smaller accounts), the client
will engage Gĕneos (not Ascendant) as the investment adviser per the investment‐related offerings and
services provided and administered by Gĕneos. The recommendation that a client engage Gĕneos to serve
as an investment adviser presents a conflict of interest, as the recommendation could be made on the
basis of compensation to be received by Ascendant representatives in their capacity as investment adviser
representatives of Gĕneos, rather than basing such recommendation on a particular client’s need.
Wrap Fee Program
Ascendant does not participate in a wrap fee program.
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Assets Under Management
As of December 31, 2022, Ascendant had $259,208,620 in discretionary assets under management.