Description of Services and Fees
WESPAC Advisors SoCal, LLC dba Stonemark Wealth Management is a federally registered
investment adviser headquartered in Pasadena, California. We are organized as a limited liability
company under the laws of the State of California. Peter P. Chen and Wade S. Perry are the firm's
principal owners. Currently, we offer investment management services which are personalized to each
individual client.
Please refer to the description of each investment advisory service listed below for information on how
we tailor our advisory services to your individual needs. As used in this brochure, the words "we", "our"
and "us" refer to Stonemark Wealth Management and the words "you", "your" and "client" refer to you
as either a client or prospective client of our firm.
Investment Management Services
Stonemark Wealth Management provides continuous and regular investment supervisory services on a
discretionary basis. We work with clients and have the ongoing responsibility to select and/or make
recommendations, based upon the objectives of the client, as to specific securities or other
investments.
Stonemark Wealth Management will primarily utilize the following investment types when making
investment purchases in client accounts:
•Equity securities, such as stocks and foreign securities listed on US exchanges (ADRs) and/or
foreign exchanges (ordinaries)
•Fixed income securities, such as U.S. government securities, municipal securities, corporate
bonds, commercial paper, and certificates of deposit (CDs)
•Securities with equity and debt characteristics, including convertible bonds, preferred stocks or
other preferred securities
•Mutual funds
•Exchange traded funds (ETFs)
•Covered call options
Stonemark Wealth Management primarily utilizes model portfolios that are customized for clients
through allocation changes. Our firm may occasionally utilize additional types of investments, other
than those listed above, if they are appropriate to address the individual needs, goals, and objectives
of the client or in response to client inquiry. Stonemark Wealth Management may offer investment
advice on any investment held by the client at the start of the advisory relationship. We describe the
material investment risks for many of the securities that we utilize under the heading Specific Security
Risks in Item 8 below.
We discuss our discretionary authority below under Item 16 - Investment Discretion. For more
information about the restrictions clients can put on their accounts, see Tailored Services and Client
Imposed Restrictions in this item below.
We describe the fees charged for investment management services below under Item 5 - Fees and
Compensation.
As part of our Investment Management Services, we may, in our sole discretion, provide clients with
financial planning and/or general consulting services at no additional fee.
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We may also offer, on a limited basis and depending on client circumstances, non-discretionary
portfolio management services. If you enter into non-discretionary arrangements with our firm, we must
obtain your approval prior to executing any transactions on behalf of your account. You have an
unrestricted right to decline to implement any advice provided by our firm on a non-discretionary basis.
Limitations on Investments
In some circumstances, Stonemark Wealth Management's advice may be limited to certain types of
securities.
•Limitation by Plan Sponsor/Employer -In the event Stonemark Wealth Management is
managing assets within a retirement plan such as 401(k), 403(b), or other employer plan,
Stonemark Wealth Management is limited to those investment providers and investment
options chosen by the plan administrator. Similarly, when we provide services to participants in
an employer-sponsored plan, the participant may be limited to investing in securities included in
the plan's investment options. Therefore, Stonemark Wealth Management can only make
recommendations to the client from among the available options, and will not recommend or
invest the client's account in other securities, even if there may be better options elsewhere.
•Limitation by Issuer - In the event Stonemark Wealth Management is managing assets within
an annuity, Stonemark Wealth Management is limited to those investment options made
available by the insurance company.
•Limitation by Client - Stonemark Wealth Management may also limit advice based on certain
client-imposed restrictions. For more information about the restrictions clients can put on their
accounts, see Tailored Services and Client Imposed Restrictions in this Item below.
Selection of Other Advisers
In some circumstances, we may recommend that you use the services of a third party money manager
("TPMM") to manage all, or a portion of, your investment portfolio. After gathering information about
your financial situation and objectives, we may recommend that you engage a specific TPMM or
investment program. Factors that we take into consideration when making our recommendation(s)
include, but are not limited to, the following: the TPMM's performance, methods of analysis, fees, your
financial needs, investment goals, risk tolerance, and investment objectives. We will monitor the
TPMM(s)' performance to ensure its management and investment style remains aligned with your
investment goals and objectives.
The TPMM(s) will actively manage your portfolio and will assume discretionary investment authority
over your account. If you've engaged us for discretionary portfolio management services, we will
assume discretionary authority to hire and fire TPMM(s) and/or reallocate your assets to other
TPMM(s) where we deem such action appropriate.
Non-Managed Assets
With respect to investment management services, Stonemark Wealth Management will only be
responsible for the supervision and management of securities or third-party money manager we
recommend. Stonemark Wealth Management will not be responsible for the supervision or
management of non-managed assets. Non-managed assets may include securities held in a client's
account that is under management with Stonemark Wealth Management that were:
•Delivered into the account by the client;
•Purchased by the client;
•Purchased by Stonemark Wealth Management at the request of the client as an
accommodation; or
•Designated by the client to be non-managed securities by written notification.
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Tailored Services and Client Imposed Restrictions
Stonemark Wealth Management manages client accounts based on the investment strategy the client
chooses, as discussed below under Item 8 - Methods of Analysis, Investment Strategies, and Risk
of Loss. Stonemark Wealth Management applies the selected strategy for each client, based on the
client's individual circumstances and financial situation. We make investment decisions for clients
based on information the client supplies about their financial situation, goals, and risk tolerance. Our
investment selections may not be suitable if the client does not provide us with accurate and complete
information. It is the client's responsibility to keep Stonemark Wealth Management informed of any
changes to their investment objectives or restrictions.
Clients
may also request other restrictions on the account, such as when a client needs to keep a
minimum level of cash in the account or does not want Stonemark Wealth Management to buy or sell
certain specific securities or security types in the account. Stonemark Wealth Management reserves
the right to not accept and/or terminate management of a client's account if we feel that the client-
imposed restrictions would limit or prevent us from meeting or maintaining the client's investment
strategy.
Consulting Services
In limited circumstances, Stonemark Wealth Management may provide financial consulting services
that involve advising clients on specific financial-related topics. The topics we address may include, but
are not limited to, risk assessment/management, investment planning, financial organization, or
financial decision making/negotiation. Financial consulting services may be offered as either one-time
or ongoing services, as indicated in the Financial Consulting Agreement you execute with our firm.
Financial Planning Services
Stonemark Wealth Management offers financial planning services which typically involve providing a
variety of advisory services to clients regarding the management of their financial resources based
upon an analysis of their individual needs. These services can range from broad-based financial
planning to consultative or single subject planning. If you retain our firm for financial planning services,
we will meet with you to gather information about your financial circumstances and objectives. We may
also use financial planning software to determine your current financial position and to define and
quantify your long-term goals and objectives. Once we review and analyze the information you provide
to our firm and the data derived from our financial planning software, we will deliver a plan to you,
designed to help you achieve your stated financial goals and objectives.
With respect to clients who have engaged our firm's portfolio management services, we may provide
consultative or modular financial planning on specific topics selected by the client. This service is
provided at the client's request and the fee for such services is included in the client's portfolio
management fee.
Financial plans are based on your financial situation at the time we present the plan to you, and on the
financial information you provide to us. You must promptly notify our firm if your financial situation,
goals, objectives, or needs change.
If you have not engaged us for discretionary portfolio management services, you are under no
obligation to act on our financial planning recommendations. Should you choose to act on any of our
recommendations, you are not obligated to implement the financial plan through any of our other
investment advisory services. Moreover, you may act on our recommendations by placing securities
transactions with any brokerage firm.
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Rollover Recommendations
Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field
Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's
Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where applicable, we are providing the
following acknowledgment to you. When we provide investment advice to you regarding your
retirement plan account or individual retirement account, we are fiduciaries 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. The way we make money creates some conflicts with
your interests, so we operate under a special rule that requires us to act in your best interest and not
put our interest ahead of yours. Under this special rule's provisions, we must:
•Meet a professional standard of care when making investment recommendations (give prudent
advice);
•Never put our financial interests ahead of yours when making recommendations (give loyal
advice);
•Avoid misleading statements about conflicts of interest, fees, and investments;
•Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
•Charge no more than is reasonable for our services; and
•Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account that we
manage or provide investment advice, because the assets increase our assets under management
and, in turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in
your best interest.
General - Advisory Services to Retirement Plans and Plan Participants
As disclosed above, we offer various levels of advisory and consulting services to employee benefit
plans ("Plan") and to the participants of such plans ("Participants"). Pursuant to adopted regulations of
the U.S. Department of Labor, we are required to provide the Plan's responsible plan fiduciary (the
person who has the authority to engage us as an investment adviser to the Plan) with a description of
the services we provide to the Plan, the compensation we receive for providing those services, and our
status (which is described below).
The services we provide to your Plan and the compensation that we receive for such services are
described above, and in the service agreement that you sign with our firm. We do not reasonably
expect to receive any other compensation, direct or indirect, for the services we provide to the Plan
or Participants unless we are retained under a separate engagement. If we receive any other
compensation for such services, we will (i) offset the compensation against our stated fees, and (ii) we
will promptly disclose the amount of such compensation, the services rendered for such compensation
and the payer of such compensation to you.
In providing services to the Plan and Participants, our status is that of an investment adviser registered
under the Investment Advisers Act of 1940, and we are not subject to any disqualifications under
Section 411 of ERISA. To the extent we perform fiduciary services, we are acting as a fiduciary of the
Plan as defined in Section 3(21) and/or Section 3(38) under ERISA. The agreement you sign with our
firm will clearly identify our firm's fiduciary status.
Sub-Advisory Services to Registered Investment Advisers
Stonemark Wealth Management offers sub-advisory services to another investment adviser (the
"Primary Investment Adviser"). As part of these services, Stonemark Wealth Management will manage
assets for select clients of the Primary Investment Adviser on a discretionary basis. The Primary
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Investment Adviser is responsible for selecting the clients for whom Stonemark Wealth Management
manages assets, and for managing the client relationships for the clients for which Stonemark Wealth
Management provides sub-advisory services. Stonemark Wealth Management charges a sub-
advisory fee to the Primary Investment Adviser and the Primary Investment Adviser is responsible for
billing the clients.
Wrap Fee Programs
Stonemark Wealth Management does not manage accounts as part of a wrap or bundled fee program.
Assets Under Management
As of December 31, 2023, we provide continuous management services for $427,080,146 in client
assets on a discretionary basis, and $0 in client assets on a non-discretionary basis.