Firm Overview
Forum Financial Management, LP (“Forum”) is a registered investment adviser (“RIA”) with the Securities and
Exchange Commission (“SEC”), with its principal place of business located in Lombard, Illinois. Forum was
founded in May 2002. Forum provides fee-based wealth management and financial planning services for
individual and institutional clients. In addition, Forum provides services to other independent advisory firms across
the country as a sub-advisor. Further, Wealth Advisor Alliance (“WAA”) is a division of Forum that markets
Forum’s investment management and back office services to other independent financial advisors and
independent investment advisory firms.
Services Offered
We tailor our advisory services to the individual needs of our clients. We offer a variety of services, which are
described in detail below. Before receiving any advisory services, you will need to sign a written agreement that
details the exact terms of service.
Portfolio Management Services
Our Portfolio Management Services provide continuous and ongoing management of your investment portfolio,
based on your individual needs and investment objectives. Your investment portfolio includes your brokerage
accounts held by a qualified custodian for which you have appointed us as your investment adviser of record. We
provide our advisory services consistent with your investment objectives and with our fiduciary duty to you.
Forum manages client accounts using various model asset allocation portfolios. Each model portfolio is designed
to meet a particular investment goal. Through personal discussions and completion of applicable suitability
documentation, each client’s financial situation, investment goals, objectives, and risk tolerance are established.
Based on this information, Forum will determine which model portfolio is suitable to the client’s circumstances.
The client’s objectives and Forum’s recommended portfolio for each client is then documented in an Investment
Portfolio Statement (“IPS”).
We assign your investment strategy based on the information you provide to us. Inaccurate or incomplete
information could result in an inappropriate investment portfolio. Past performance is no indication of future
performance, and we cannot offer any guarantees or promises that your goals and objectives will be met.
Changes to your personal financial circumstances, goals, or objectives could cause your investment strategy to
become inaccurate and out of date. We rely on you to notify us promptly of any changes to your investment
objectives or financial situation, so your investment portfolio can be updated, if necessary.
We will provide our Portfolio Management Services on a discretionary basis. This means we are not required to
give you advance notice or seek your consent for any changes to your portfolio. Although you retain ownership
and control over your investment account, we ask that you refrain from conducting transactions in the account
without first notifying us. Please coordinate with us on any anticipated deposits or withdrawals so we can ensure
your investment strategy is maintained.
Forum will, from time to time, enter into additional written agreements with third-party RIAs (“Outside Managers”)
for portfolio management services, to manage all or a part of your portfolio, as it deems appropriate and in the
best interests of clients. We will monitor the services provided by the Outside Manager to ensure that maintaining
the investment account with the Outside Manager remains appropriate. The Outside Manager will manage your
account on a discretionary basis. We encourage you to review the Disclosure Brochure of the Outside Manager
for more details regarding the Outside Manager’s services and fees. Our review process and analysis of Outside
Managers is discussed further in Item 8 – Methods of Analysis, Investment Strategies, and Risk of Loss below.
Qualified Plan Services with Managed Portfolios
Forum also offers Qualified Plan Services, which consist of several related advisory services that can be provided
separately or in combination depending on the client’s needs. While the primary clients for these services will be
sponsors of pension, profit sharing, and 401(k) plans, Forum can also provide these services, where appropriate,
to individuals, trusts, estates, and charitable organizations. Forum’s Qualified Plan Services are comprised of four
distinct services.
Selection of Investment Vehicles – Forum will work closely with the client, the plan administrator, and/ or other
third-parties, to determine if Forum’s investment approach is consistent with the client’s IPS. Forum primarily
uses DFA institutional mutual funds and exchange-traded funds (“ETFs”) as the investment vehicles using
model portfolios that are managed by Forum.
Monitoring of Investment Performance – Plan investment options will be monitored according to the
procedures and timing intervals determined by the client and the IPS. Forum will not be involved in executing
transactions within the relevant plan in providing these monitoring services.
Employee Communications – For pension, profit sharing, and 401(k) plan clients where there are individual
accounts with participants exercising control over assets in their own account (‘‘self-directed plans’’), Forum
can provide educational support and investment workshops designed for the qualified plan participants. The
nature of the topics to be covered will be determined by Forum and the client under the guidelines established
in Section 404(c) of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended. The
educational support and investment workshops will not provide plan participants with individualized, tailored
investment advice or asset allocation recommendations outside the scope of the retirement plan.
Managed Portfolios – As part of its Qualified Plan Service, limited to participant-directed plans, Forum also
offers the sponsors of tax-qualified retirement plans managed model portfolios that the sponsor can then offer
to its plan participants. Qualified plan sponsors engaging Forum to provide this service will have daily access
to the performance of their plan participant accounts via a website serviced by the plan’s recordkeeper.
All Qualified Plan Services will be provided in compliance with the applicable state and federal regulations,
including ERISA, as amended. With respect to assets that are part of an ERISA plan, when we accept
appointments to provide our services to such accounts, we acknowledge our fiduciary role within the meaning of
Section 3(21) of ERISA, but only with respect to the provision of services described in the advisory agreement.
We do not assume the duties or accept appointment as a trustee or plan administrator as defined in ERISA
Section 3(16).
Generally, our Qualified Plan Services consist of assisting the plan sponsor in establishing, monitoring, and
reviewing their company’s participant-direct retirement plan. Services provided to participants are generally
considered informational and educational only. Services to participants could include information about the plan,
general financial and investment information, and/or generalized asset allocation models, but will not address the
appropriateness for any individual investment option or model for any particular participant. We cannot provide
individualized investment advice to participants unless they separately engage our Portfolio Management
Services or Financial Planning Services.
Financial Planning Services
Forum also provides Financial Planning Services on a more limited basis through consultations with the client.
This can include advice on an isolated area(s) of concern or specific topics. Forum provides specific consultation
and administrative services regarding investment and financial concerns of the client. Additionally, Forum can
provide advice on non-securities matters.
Our Financial Planning Services involve an evaluation of your current financial circumstances and future
projections by using currently known variables to predict future cash flows, asset values, and withdrawal plans.
We will guide you through a process to establish your investment goals and objectives. You will be required to
provide information necessary to help us analyze your current financial situation, desired goals, and anticipated
future needs.
If you engage our Portfolio Management Services, you will receive our Financial Planning Services on an ongoing
basis for no additional fee. On a limited basis, Financial Planning Services may be provided on a standalone
basis for a negotiated fee.
We use the information provided by you in the financial planning process to formulate our investment
recommendations for your investment portfolio. As your financial circumstances change, we ask that you please
notify us promptly, so that we can work with you to update your financial plan as needed and adjust your
investment portfolio as necessary.
We base our financial plans on the information you provide to us. Inaccurate or incomplete information could
result in an inaccurate or incomplete financial plan. To create a financial plan, we must make certain assumptions
with respect to interest and inflation rates, past trends, and future projections of the performance of the market
and economy. Past performance is no indication of future performance, and we cannot offer any guarantees or
promises that your goals and objectives will be met. Changes to your personal financial circumstances, goals, or
objectives could cause your financial plan to become inaccurate and out of date. We recommend you notify us
promptly of any changes so your plan can be updated.
Financial Planning Services are provided on a non-discretionary basis. This means you have the option to
implement any of the recommendations made in the financial plan. You are not obligated to implement any
financial planning recommendations made by us. Although the financial plan could consider your tax situation or
estate plan, we do not provide tax or legal advice. We recommend you work closely with your attorney,
accountant, or other investment professionals in implementing your plan. We are happy to work with your
professionals to coordinate your financial plan with your estate planning and tax planning.
When we provide Financial Planning Services, we must notify you when a material conflict exists between the
interests of our firm and your interests. You are under no obligation to act upon our financial planning
recommendations. If you elect to act on any of the recommendations, you are under no obligation to effect the
transaction through our firm.
Educational Workshops and Seminars
From time to time, Forum offers or participates in educational workshops or seminars on estate planning,
retirement planning, financial planning, charitable giving, personal finance, as well as other investment-related
topics. Events could be in-person or virtual presentations featuring one or more of our qualified professionals as a
speaker, providing content of an educational and informational nature. The investment information provided under
this service does not purport to meet the objectives or needs of any individual client or portfolio. Following the
presentation, attendees could be encouraged to meet with a Forum advisor to discuss the current investment and
insurance holdings of the participant, but advisors will not provide individualized advice and attendees will not be
required to retain Forum’s services. Analysis of the attendee’s
needs and goals could indicate the desirability of
utilizing one or more of Forum’s programs described in the previous sections.
Sub-Advisory Services
Forum acts as a turn-key asset management platform (“TAMP”), or sub-advisor, to third-party RIAs and their
clients. In this capacity, Forum generally acts as a sub-advisor to an RIA and offers its model portfolios directly or
indirectly to the RIA’s clients. In addition, Forum commonly provides back office administration services to the
RIAs, which include research, trading for the RIA’s clients, and rebalancing of the RIA’s clients’ portfolios. Forum
rebalances the client portfolios according to the RIA’s specified models or assets allocations or by Forum’s own
models if selected by the RIA. In addition, Forum also assists with training, technology implementation, and the
preparation of quarterly reports for the clients of the RIAs. Finally, Forum facilitates the invoicing of the RIA’s
clients for fees and manages the payments by the RIA’s clients to the RIA.
Forum is not responsible for analysis of the RIA’s clients’ financial situation, suitability requirements, asset
allocations, or restrictions. Moreover, if a RIA’s clients retain Forum as a sub-advisor, the RIA will be responsible
for providing Forum’s ADV Part 2A to the RIA’s end-user clients.
Due to the fact that Forum’s direct clients could be trading the same securities as the securities traded for
Forum’s indirect RIA clients, a conflict of interest can arise in trade allocation if there is a limited quantity of the
investment or in the timing of the trading. Another conflict exists if Forum’s direct clients could be trading opposite
of the securities traded for Forum’s indirect RIA clients if they are following the RIA’s portfolio selection or
management rather than Forum’s. In general, because the RIAs have selected Forum to manage the portfolios,
the conflicts are minimized.
Types of Investments
Depending on the investment objectives of the client and the terms of the engagement, Forum will create a model
portfolio as described below under Item 8 – Methods of Analysis, Investment Strategies, and Risk of Loss. The
types of securities employed to fund the various asset classes of the portfolio generally include institutional style-
specific asset class mutual funds, exchange-traded funds (“ETFs”), U.S. government securities, and municipal
bonds. Institutional style-specific asset class mutual funds and ETFs are widely, but not exclusively, used to
effectively mirror the asset classes in the model portfolio and minimize client costs.
Forum has a strategic relationship with Dimensional Fund Advisors, LP (“DFA”), an SEC-registered investment
adviser and asset manager. DFA mutual funds are available for investment only by clients of RIAs who work with
DFA. This means that if you terminate your advisory relationship with Forum, it is possible that you will not be able
to make additional investments in this family of mutual funds unless you work with another authorized DFA
advisor. DFA also provides other benefits to Forum, such as sponsoring educational events or hosting occasional
business entertainment for advisors and staff.
Forum will primarily use DFA institutional mutual funds and ETFs to implement a client’s portfolio. DFA’s
approach is based on the efficient market hypothesis. Unlike index funds, DFA’s funds generally do not track a
specific index and thus avoid the costs of having to buy and sell securities at specific points in time. They are
designed to capture specific risk and return characteristics with reliability and transparency. DFA provides
financial advisors with a series of stock and bond funds that serve as building blocks, allowing advisors to
construct a diversified portfolio that balances risk and reward. Their advantages include low internal cost, tax
efficiency, and style consistency.
Forum will primarily use DFA funds with the following exceptions:
When Forum believes individual U.S. treasuries or municipal bonds are a better alternative;
When there is a benefit to directly holding high yield bonds; or
For certain asset classes where Forum has determined that Vanguard offers a better solution.
Furthermore, Forum will employ an individual bond strategy or individual brokerage certificates of deposits
(“CDs”) for a portion of clients’ portfolios if Forum deems it appropriate and in the best interests of clients.
Socially Responsible Investing
Socially Responsible Investing (“SRI”) involves the incorporation of Environmental, Social, and Governance
(“ESG”) considerations into the investment due diligence process. 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 are generally more limited compared to those that do not maintain such a mandate.
ESG securities could underperform broad market indices. Investors must accept these limitations, including the
potential for underperformance. Correspondingly, the number of ESG mutual funds and ETFs 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 Forum, there can be no assurance that
investment in ESG securities or funds will be profitable or prove successful.
Alternative Investments
Alternative investments include, but are not limited to, strategies such as hedge funds, private equity, direct real
estate investments, derivatives, cryptocurrencies (e.g., Bitcoin, Ethereum, etc.), or other assets outside of SEC-
regulated securities exchanges or over-the-counter markets. Forum considers alternative investments to be
speculative with high risk of loss. Forum does not manage these types of assets. As such, Forum generally does
not recommend investing in these types of assets within our managed portfolios.
For Clients who have indicated a preference to invest in alternative investments, Forum strongly recommends
limiting the investment in alternative investments to a percentage of one’s portfolio, such that a total loss of value
on such alternative investments would not derail their financial plan. If a client wishes to pursue alternative
investments, Forum advisors can provide information on the benefits and risks of an alternative investment or the
specific investments desired by the client.
As of the date of this Brochure, Forum advisors are prohibited from receiving any new direct or indirect
compensation related to their advice on alternative investments. Forum advisors who have joined Forum from a
previous investment advisory firm with clients holding legacy positions in alternative investments could collect
previously agreed upon fees for legacy alternative investments within a client’s account. In addition, while Forum
advisors are not prohibited from holding alternative investments in their own personal accounts outside of Forum’s
management, they are prohibited from receiving economic benefit for the recommendation of any specific
alternative investment. Forum advisors will disclose if they hold the alternative investment desired by the client,
but this disclosure is not a recommendation or endorsement of that specific alternative investment.
Client Tailored Services
We tailor our advisory services to your individual needs. We will conduct an initial interview and data gathering
process to determine your financial situation and investment objectives. We provide our advisory services
consistent with your investment objectives and our fiduciary duty to you.
Forum manages client accounts using various model asset allocation portfolios. Each model portfolio is designed
to meet a particular investment goal. Through personal discussions and completion of applicable suitability
documentation, each client’s financial situation, investment goals, objectives, and risk tolerance are established.
Based on this information, Forum will determine which model portfolio is suitable to the client’s circumstances.
The client’s objectives and Forum’s recommended portfolio for each client is then documented in an Investment
Portfolio Statement (“IPS”).
Once the appropriate portfolio has been determined, the account is generally managed based on the portfolio’s
goal, rather than on each client’s individual needs. Account supervision is guided by the stated objectives of the
client (e.g., Aggressive Growth, Growth, Growth and Income, Income and Growth, or Income). See our Methods
of Analysis in Item 8 – Methods of Analysis, Investment Strategies, and Risk of Loss below for more details on our
model portfolios. Forum will, if appropriate, suggest modifications to the model or an allocation among two or
more of the models to more adequately address the client’s individual needs. Forum will manage advisory
accounts on a discretionary or non-discretionary basis. Clients that retain Forum to manage their accounts on a
non-discretionary basis should note that Forum will trade all discretionary accounts at the same time it notifies
non-discretionary clients of recommended trades. In other words, a non-discretionary client will not have an
opportunity to place their trades before the discretionary account orders are entered. Thus, to the extent that
Forum’s recommendations include securities that trade intra-day, the non-discretionary trades will, of necessity,
occur after those that are handled on a discretionary basis.
With respect to sub-advisory services, Forum provides outsourcing services to independent investment advisory
firms and services the clients of the firm based on the objectives and instructions provided by the firm to Forum.
You can request reasonable restrictions on investing in certain securities, types of securities, or industry sectors.
We will make a reasonable attempt to honor any restrictions you request, but in the case of pooled investment
vehicles, such as mutual funds or ETFs, where underlying holdings change frequently, we cannot guarantee
restrictions will always be enforced. In addition, such restrictions could cause us to deviate from the investment
decisions we would otherwise make in managing your account. In some cases, we will not be able to
accommodate restrictions if they do not allow us to manage your portfolio in a prudent manner. You can also
request to impose reasonable restrictions upon certain securities or types of securities in your account.
Because our advisory services are based on your specific financial circumstances, you are urged to promptly
notify us any time you experience changes to your financial circumstances, so we can determine if any changes
to your investment strategy or our recommendations are necessary.
Wrap Fee Programs
Forum does not participate in a wrap fee program or serve as a manager to a wrap fee program.
Assets Under Management
As of the end of our last fiscal year, December 31, 2023, Forum manages approximately $8,531,276,820 in client
assets, with approximately $8,447,116,072 in client assets managed on a discretionary basis and approximately
$84,160,747 in client assets managed on a non-discretionary basis.
Forum manages $1,397,755,416 of the $8,531,276,820 in client assets as a sub-advisor to other investment
advisory firms.
This section will be updated on at least an annual basis to reflect our assets under management as of December
31 each year, or more frequently if material changes occur with regard to the assets we manage.