Firm Description
Auxano Advisors, LLC (Auxano) is an investment advisory firm providing investment advisory
services to individuals, high net worth individuals, pension and profit-sharing plans, trusts,
estates, charitable organizations and corporations. Auxano and its predecessor Firm have been
serving clients continuously since 1987.
Principal Owners
Auxano’s primary owner is Peter W. Cline, Founder, Chief Executive Officer, Chief Compliance
Officer and Client Advisor. Alex K. Lee, Client Advisor and Dwight S. Whiting, Client Advisor,
have some minority ownership in the Firm.
Types of Advisory Services
Auxano offers a comprehensive package of services (Family Office Services) to its clients or
offers portfolio management on a stand-alone basis (Investment Advisory Services).
Family Office Services
Family Office Services may include a review of all aspects of a client’s current financial situation,
including, but not limited to asset allocation, investment review, cash management, risk
management, insurance, education funding, goal setting, retirement planning, estate planning,
charitable giving planning, tax planning, and capital needs planning.
Family Office Services may also include investment advisory services, defined as giving
continuous advice to a client or making investments for a client based on the individual needs
of the client. Through personal discussions in which goals and objectives based on a client's
particular circumstances are established, Auxano develops a client's personal investment policy
and creates and manages a portfolio based on that policy. Auxano will manage advisory
accounts on both a discretionary and nondiscretionary basis.
Auxano meets with the client to review risk tolerance, financial goals and objectives, and time
horizons. Meetings may also include a review of additional financial information, sources of
income, assets owned, existing insurance, liabilities, wills, trusts, business agreements, tax
returns, investments, and personal and family obligations.
Auxano does not provide specific tax or legal advice but with the client’s consent, Auxano may
work with client’s other advisors (accountant, attorney, or insurance agent) to help with
coordination and implementation of the agreed upon strategies. The client should be aware
that their other advisors will bill them separately for their services and these fees will be in
addition to those of Auxano. Specific product recommendations made by Auxano (or its related
persons) will usually be for “no-load” (i.e., no commission) products, if available. In some cases,
such as insurance products, there may not be a suitable selection of no-load products available
for recommendation.
Family Office Services are based on the client’s financial situation at the time and are based on
financial information disclosed by client to Auxano. Clients are advised that certain assumptions
may be made with respect to interest and inflation rates and use of past trends and
performance of the market and economy. However, past performance is in no way an
indication of future performance. Auxano cannot offer any guarantees or promises that the
client’s financial goals and objectives will be met. Further, the client must continue to review
any plan and update the plan based upon changes in the client’s financial situation, goals, or
objectives or changes in the economy. Should the client’s financial situation or investment goals
or objectives change, the client must notify Auxano promptly of the changes.
Investment Advisory Services
Auxano provides investment advisory services, defined as giving continuous advice to a client or
making investments for a client based on the individual needs of the client. Through personal
discussions in which goals and objectives based on a client's particular circumstances are
established, Auxano develops a client's personal investment policy and creates and manages a
portfolio based on that policy. Auxano will manage advisory accounts on both a discretionary
and non-discretionary basis.
Financial Planning
Financial planning may be offered as a component of the overall investment advisory services
and may include a review of a client’s current financial situation. A
review may include the
following components: cash management, risk management, insurance, education funding,
goal setting, retirement planning, estate and charitable giving planning, tax planning, and
capital needs planning. Auxano generally does not charge a separate fee for financial planning
services.
Other Investments – Independent Managers / Private Funds
If suitable, Auxano may recommend the use of Independent Manager(s) or Private Funds to
certain clients as a component of overall investment planning and allocation advice. When
recommending an Independent Manager or Private Fund, Auxano shall review disclosure
documents, investment agreements, private placement memoranda and other materials, as
applicable. Auxano shall continue to render services to the client relative to assets placed with
Independent Manager(s) or Private Funds, including monitoring and review of account
performance and client investment objectives.
Other Services
Auxano has a relationship with Blue Kayak Partners, LLC, a state-registered Investment Adviser,
to provide consulting services to the Firm. Jon K. Pinkston, Founder and Chief Investment
Officer with Blue Kayak Partners, LLC, provides market strategy and fundamental research to
Auxano.
Tailored Relationships
Auxano tailor’s advisory services to the individual needs of the client. Clients may impose
restrictions on investing in certain securities or types of securities. All limitations and
restrictions placed on accounts must be presented to Auxano in writing.
The goals and objectives for each client are documented in our client relationship management
system. Investment policy statements are created that reflect the stated goals and objectives.
Agreements may not be assigned without client consent.
Fiduciary Statement
We are fiduciaries under the Investment Advisers Act of 1940 and when we provide investment
advice to you regarding your retirement plan account or individual retirement account, we are
also fiduciaries within the meaning of Title I of the Employee Retirement Income Security Act,
(“ERISA”) and/or the Internal Revenue Code, (“IRC”), as applicable, which are laws governing
retirement accounts.
We have to act in your best interest and not put our interest ahead of yours. At the same time,
the way we make money creates some conflicts with your interests. We must take into
consideration each client’s objectives and act in the best interests of the client. We are
prohibited from engaging in any activity that is in conflict with the interests of the client. We
have the following responsibilities when working with a client:
• To render impartial advice;
• To make appropriate recommendations based on the client’s needs, financial
circumstances, and investment objectives;
• To exercise a high degree of care and diligence to ensure that information is presented
in an accurate manner and not in a way to mislead;
• To have a reasonable basis, information, and understanding of the facts in order to
provide appropriate recommendations and representations;
• Disclose any material conflict of interest in writing; and
• Treat clients fairly and equitably.
Regulations prohibit us from:
• Employing any device, scheme, or artifice to defraud a client;
• Making any untrue statement of a material fact to a client or omitting to state a material
fact when communicating with a client;
• Engaging in any act, practice, or course of business which operates or would operate as
fraud or deceit upon a client; or
• Engaging in any manipulative act or practice with a client.
We will act with competence, dignity, integrity, and in an ethical manner, when working with
clients. We will use reasonable care and exercise independent professional judgement when
conducting investment analysis, making investment recommendations, trading, promoting our
services, and engaging in other professional activities.
Wrap Fee Programs
Auxano does not participate in a Wrap Fee Program.
Client Assets
As of March 14, 2024, Auxano manages $1,269,622,086 in assets under management;
$1,200,755,463 is managed on a discretionary basis, and $68,866,623 is managed on a non-
discretionary basis.