Firm Description
Shelter Rock Management, LLC hereinafter (“the Adviser”) was founded in 2006. Sean Chaitman is
the principal owner and 100% stockholder.
The Adviser provides personalized confidential investment management to individuals, pension and
profit-sharing plans, trusts, estates, charitable organizations, and small businesses.
The Adviser is a fee-only investment management firm. The firm does not sell securities on a
commission basis. The firm is not affiliated with entities that sell financial products or securities.
The Adviser does not act as a custodian of client assets. The client always maintains asset control.
Any conflicts of interest arising out of the Adviser or its associated persons are disclosed in this
brochure.
Types of Advisory Services
Shelter Rock Management, LLC (“the Adviser”) provides investment advisory services to its clients
on a discretionary and non-discretionary basis. As part of the investment advisory service, the
Adviser reviews many aspects of the client’s financial affairs including investment time horizon,
financial objectives, and risk profile. The Adviser works with clients to set realistic and measurable
goals and to define objectives to reach those goals. As goals and objectives change over time, the
Adviser will make recommendations and implement an action plan on an ongoing basis. The Adviser
periodically reviews a client’s financial situation and portfolio through regular contact with the client.
The advisory services include, among other things, providing advice regarding asset allocation and
the selection and monitoring of investments including mutual funds, indices, fixed income, and
individual equities. A client's relationship may include a blend of services listed below and is guided
by the stated objectives of the client.
Strategic Income
The Strategic Income Strategy is a fixed-income managed account strategy that is primarily invested
in a diversified portfolio of short to intermediate-term bonds. The strategy may also contain a
minority weighting in multi-strategy bond funds and/or ETFs and have up to 20% of assets in
preferred and dividend stocks. The strategy seeks to provide current income while seeking to
preserve capital.
Conservative Allocation
The Conservative Allocation Strategy will generally have between 60% to 80% in bonds and cash and
20% to 40% in equities. The strategy has a flexible asset allocation enabling the manager to
opportunistically invest in a wide variety of asset classes and securities including individual bonds,
stocks, MLPs, mutual funds and/or ETFs. The strategy seeks to produce consistently attractive
returns over every investment cycle while preserving capital.
Equity Income
The Equity Income Strategy will generally have between 50% to 75% in high quality large-cap stocks
and 25% to 50% in individual bonds and cash. The strategy has a flexible asset allocation enabling the
manager to opportunistically invest in a wide variety of asset classes and securities including
individual stocks, bonds, MLPs and/or ETFs. The strategy seeks to generate growth and income
while preserving capital over a wide variety of market cycles.
Select Equity
The Select Equity Strategy will generally have between 90% to 100% in high quality large-cap equities.
The strategy seeks to generate growth and income while and protect downside across a wide variety
of market cycles.
Customized Accounts
Shelter Rock manages customized conservative, moderate and aggressive strategies that contain
mutual funds, individual stocks, individual bonds, ETFs and MLPs. Mutual funds and ETFs/Indices for
clients will be selected on the basis of any or all of the following criteria: the fund’s performance
history under the current manager(s); the industry sector(s) and geographic exposure of the fund’s
investments; the Advisers’ assessment of the level of risk being taken in order to achieve returns; the
fund’s investment objectives; the fund’s management style and philosophy; the fund’s management
fee structure; the fund’s tax efficiency and the level of assets in the fund. The Adviser will also
attempt to select mutual funds and indices with the goal of appropriately diversifying clients based
on individual risk tolerance, investment objectives, and investment horizon. Individual stocks will
generally be selected in companies believed to be undervalued based on free cash flow metrics. The
manager will select individual bonds by carefully balancing expected returns versus credit and
interest rate risks.
Retirement Plans
When Shelter Rock
provides investment advice to you regarding your retirement plan account or
individual retirement account, Shelter Rock and its investment adviser representatives 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 Shelter Rock
makes money creates some conflicts with your interests, so Shelter Rock operates under a special
rule that requires us to act in your best interest and not put our interest ahead of yours.
401K
Shelter Rock provides 401K services to corporate clients. This includes helping companies evaluate
401K plan administrators, creating and monitoring mutual fund menus available to participants,
constructing investment models for conservative through aggressive risk tolerances and providing
retirement, asset allocation, and investment guidance.
Retirement Plan Rollover Recommendations
A client leaving an employer typically has four options regarding an existing retirement plan (and
may engage in a combination of these options): (1) leave the money in his/her former employer’s
plan, if permitted, (2) roll over the assets to his/her new employer’s plan, if one is available and
rollovers are permitted, (3) roll over to an Individual Retirement Account (“IRA”), or (4) cash out the
account value (which could, depending upon the client’s age, result in adverse tax consequences).
If Shelter Rock recommends you roll over your account from a current retirement plan to an
individual retirement account (“Rollover IRA”) managed by Shelter Rock, please know that Shelter
Rock and its investment adviser representatives have an economic incentive to recommend a
rollover of funds from a retirement plan to a Rollover IRA which is a conflict of interest. Shelter Rock
can earn increased investment advisory fees by recommending that you roll over your account at the
retirement plan to a Rollover IRA managed by Shelter Rock and earn fewer investment advisory fees
if you do not roll over the funds in the retirement plan to a Rollover IRA managed by Shelter Rock.
Shelter Rock has taken steps to manage this conflict of interest including adopting an impartial
conduct standard whereby our investment adviser representatives will (1) provide investment advice
to a retirement plan participant regarding a rollover of funds from the retirement plan in accordance
with the fiduciary status described below, (2) not recommend investments which result in Shelter
Rock receiving unreasonable compensation related to the rollover of funds from the retirement plan
to a Rollover IRA, and (3) fully disclose compensation received by Shelter Rock and our supervised
persons and any material conflicts of interest related to recommending the rollover of funds from
the retirement plan to a Rollover IRA and (4) refrain from making any materially misleading
statements regarding such rollover.
Our investment adviser representatives will act with the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like capacity and familiar with such
matters would use in the conduct of an enterprise of a like character and with like aims, based on the
investment objectives, risk, tolerance, financial circumstances, and a client’s needs, without regard
to the financial or other interests of Shelter Rock or our affiliated personnel.
Investment Advisory Agreement
The Adviser describes to clients the scope of work to be provided and fee for advisory services in
writing prior to the start of the relationship (Investment Advisory Agreement).
An advisory client will have a period of five (5) business days from the date of signing the Investment
Advisory Agreement to unconditionally rescind the agreement. Thereafter, either party may
terminate the investment advisory agreement within 7 days’ written notice. If an advisory
relationship with Shelter Rock Management is terminated prior to December 31, the management
fee will be prorated for 7 days after written notification is received to terminate the relationship and
the management fee will be assessed based on the final accounts value 7 days after written
notification is received.
Agreements may not be assigned without client consent.
Wrap Fee Programs
The Adviser does not sponsor or participate in Wrap Fee Programs.
Client Assets under Management
As of December 31, 2022, the Adviser managed approximately $157,788,005 in assets for 266 clients
with $126,800,190 managed on a discretionary basis and $30,987,815 on a non-discretionary basis.