A. Description of our advisory firm:
Selective Advisors provides investment advice to individuals, high net worth individuals and
corporations. Company it is incorporated in Romania and main business office is in Bucharest
Romania:
35th Amman Street, Apt 2, 1st District, Bucharest 011613, Romania
Owner of the company is: Serban Radu Florea 100% of the shares
As used in this brochure, the words "we", "our" and "us" refer to Selective Advisors The words
"you", "your" and "client" refer to you as either a client or prospective client of our firm.
B. Description of the advisory service we offer:
We offer to our clients consultancy services. We emphasize continuous and regular account
supervision. As part of our consultancy service, we generally advise on specific financial
instruments or an investment plan, consisting of individual stocks or bonds, exchange traded
funds (“ETFs”), closed end funds (“CEFs”), mutual funds, options and other public and private
securities or investments. The client’s individual investment strategy is tailored to their specific
needs and may include some or all of the previously mentioned securities. Each investment plan
will be initially designed to meet a particular investment goal, which we determine to be
suitable to the client’s circumstances. We have a personalized service in the sense that we build
up our customer’s plan subject to their risk tolerance and we periodically adjust it to step by
step meet that tolerance.
Once the appropriate mixture of individual financial instruments has been determined, we
review the assets of the client at least quarterly and if necessary, rebalance the weight based
upon the client’s individual needs, stated goals and objectives.
With our clients we have exclusively advisory services for their accounts.
When you participate in our advisory management services, we require you to grant our firm
the mean and authority to manage your trades on behalf of you. Advisory authorization will
allow our firm to determine the specific securities, and the amount of securities, to be
purchased or sold for your account with your approval prior to each transaction. Advisory
authority is typically granted by the investment advisory agreement you sign with our firm, a
limited power of attorney, or means of trading authorization forms. Clients may request
restrictions on investing
in certain securities or types of securities. We will review the feasibility
of such restrictions, and inform the client as appropriate.
As of 31/12/2023, we advise on a total of $ 1,880,242 assets on advisory status basis.
C. Investment Programs proposed to our clients
Selective Advisors is proposing to clients two investment programs:
C.1.) Stocks, Bonds, Exchange Traded, Closed End and Mutual Funds Program
Taking into consideration the customer’s investment goals and objectives we set out the
decision-making processes for selecting the optimal mixture of investments. This is obtained
by adjusting between capital appreciation and income in the allocation of financial
instruments in order to generate customer’s suitable return-risk ratio.
Selection of equities would include small, mid and large capitalized companies or stock funds
such as:
Value Stocks - lower price (undervalued) relative to its fundamentals (i.e. dividends, earnings,
sales, etc.)
Growth Stocks - shares in a company whose earnings are expected to grow at above-average
rate relative to the market.
Blend Funds - equity funds with portfolios that are made up of a mix of value and growth
stocks
Emerging Market Funds – includes assets in the financial markets of a single developing
country or a group of developing countries in Eastern Europe, Africa, the Middle East, Latin
America, the Far East and Asia
Selection of fixed income instruments would include corporate bonds, short and medium term
bond funds, high yield bond funds, emerging market bond funds.
C.2.) Strategies Program
Selection of equity asset classes used as underlying of the option contracts is made after a
thorough research analysis of different investment assets. These options would include equity
options were the underlying asset is a stock of a company, an index or an exchange traded
fund, if certain liquidity criteria is met.
A medium-term target is projected and this is followed by a careful selection of contracts
which consider strikes and expiries able to deliver quantifiable risk and increase chances for a
high reward/risk ratio. These contracts will be used only for having access to trade on behalf
of the clients Stocks and Exchange Traded Funds.
Please see the section titled “Item 8 Methods of Analysis, Investment Strategies and Risk of
Loss” for more information on various relevant analysis factors, explanation of option
transactions and margin transactions.