ADV Part 2A – Firm Brochure Page 5 NewEdge Advisors, LLC
3. Plan Participant Non-Wrap Portfolio Management
4. Referrals to Third Party Money Managers
5. Pension Consulting Services
6. Business Consulting Services
NEA WRAP PROGRAMS:
We offer wrap fee programs as further described in Part 2A, Appendix 1 (the “Wrap Fee Program
Brochure”), which is a supplement to this Firm Brochure. Our wrap fee accounts are managed on
an individualized basis according to the client’s investment objectives, financial goals, risk
tolerance, etc. We do not manage wrap fee accounts in a different fashion than non-wrap fee
accounts. As further described in our Wrap Fee Program Brochure, we receive a portion of the
wrap fee for our services.
NEA NON-DISCRETIONARY PROGRAMS:
• Limited Purpose Investment Agreement:
As part of the Firm’s holistic approach to providing advice of the entirety of a client’s relationship,
NEA offers services through a Limited Purpose Investment Agreement (“LPA”). The LPA
establishes a non-discretionary relationship where clients can consolidate cash holdings and
securities that are not part of the current active management programs and accounts. Cash
balances residing in these accounts will be subject to Securities Investor Protection Corporation
(SIPC) coverage limitations and Clients should consider these limitations when determining
whether the LPA meets their needs related to their cash holdings. Besides being a non-
discretionary account structure, the LPA is completed with the client with no advisory fee. Clients
would be responsible for the transaction charges related to the limited activity that may occur in
an LPA Account but will not have an ongoing fee for management services. NewEdge Advisors
monitors the transactions in the LPA accounts as part of the firm’s oversight processes related to
its advisory programs.
• Non-Discretionary Advisory Services (“NDAS”):
Under the NDAS program, a Client chooses an NEA IAR to act as the investment consultant to the
portfolio. NEA obtains relevant financial and investment data from client relating to client’s
participation in NDAS based on personal discussions and data collection in which the client’s goals
and objectives are established based on the client’s particular circumstances.
The information will include a description of the investment objectives, risk tolerance and
guidelines for the consultation of Client’s portfolio, including any investment restrictions imposed
by the Client.
NEA ADVISORY PROGRAMS:
• Advisors Choice (“AC”)
This comprehensive fee program allows an IAR to manage a client's account in a customized
manner in accordance with the client's risk tolerance and investment objectives. The IAR
may offer advice on the following types of investments: equity securities, corporate debt
ADV Part 2A – Firm Brochure Page 6 NewEdge Advisors, LLC
securities, commercial paper, certificates of deposit, municipal securities, investment
company securities (mutual funds), United States government securities, and option
contracts on securities. Investment strategies used may include both long and short-term
purchases, short sales, purchases on margin, and option writing. AC is designed for
accounts with a minimum asset value of $25,000.
• Financial Product Management (“FPM”):
This is a comprehensive fee program which uses select mutual funds and/or ETFs generally
held within a client’s 401(k) plan, 403(b) plan, or variable annuity sub-account. Although
there is no stated minimum, FPM is generally designed for accounts with a minimum asset
value of $10,000. The component funds are chosen using the following criteria: past
performance relative to its peer group, investment style and discipline, quality of fund
management, and correlation with existing holdings.
Macro issues such as the market environment are also considered. The portfolio consists of
a core group of funds with a longer time horizon, complimented by smaller allocations to
style.
• Mid Atlantic Fund Strategy (“MAFS”):
This is a comprehensive model portfolio fee program which uses select mutual funds
and/or ETF’s. Investment objectives are dependent upon the particular fund strategy
selected. MAFS is designed for accounts with a minimum asset value of $10,000. MAFS
currently utilizes the Russell Investment Company Model Strategies, which are managed by
Russell Investments, the BlackRock Research Model Portfolios, which utilize the BlackRock
iShares Funds, the Fidelity Target Allocation Model Portfolios which use Fidelity Mutual
Funds and ETF’s, and the Vanguard ETF strategic model portfolios, constructed by the
Vanguard Investment Strategy Group. Russell, BlackRock, Fidelity and Vanguard are
considered among the world's leading asset consulting and investment management firms,
providing investment advice, analytical tools, and funds to institutional and individual
investors. MAFS may use other mutual fund/ETF model strategies in addition to those
constructed by Russell, BlackRock, Fidelity and Vanguard.
NEA MANAGER OF MANAGERS PROGRAM:
NEA offers advisory management services to clients through our Manager of Managers Programs.
We provide the client with an asset allocation strategy developed through personal discussions and
data collection in which the client's goals and objectives are established based on the client's
particular circumstances. The firm’s three programs are:
• Mid Atlantic Portfolio Solutions (“MAPS”):
NEA offers investment management and advice through Mid Atlantic Portfolio Solutions
("MAPS"), which provides consulting services and investment management services of
third-party investment advisers. To be eligible for participation in MAPS, client accounts
must have a minimum asset value of $100,000.
The program provides asset consulting services in connection with the selection of the
third-party investment advisers, taking into consideration the client's investment
ADV Part 2A – Firm Brochure Page 7 NewEdge Advisors, LLC
objectives, financial situation, risk tolerance, and reasonable investment guidelines. MAPS
also provides asset allocation, ongoing consultations, and performance measurement
reports.
NEA performs the third-party manager due diligence and performance reporting. NEA
compiles an approved list of third-party investment advisers. To be included on the
approved list, third party investment advisers are subject to a comprehensive review and
analysis by NEA. NEA will run risk and return screens, and perform peer analysis reviews.
• Separate Account Solutions (“SAS”):
NEA offers investment management and advice through its Separate Account Solutions
program (“SAS”). This program provides consulting and investment management services
with third party investment advisers. To be eligible for participation in SAS, client
accounts must have a minimum asset value of $100,000.
The SAS program provides asset consulting services in connection with the selection of
the third-party investment advisers, taking into consideration the client's investment
objectives, financial situation, risk tolerance, and reasonable investment guidelines.
SAS also provides asset allocation, ongoing consultations, performance measurement
reports and an investment policy if appropriate.
NEA operates SAS in conjunction with a program offered by Envestnet Asset Management,
Inc. (“Envestnet”). Envestnet is a third-party investment management firm providing
investment management and investment advisory services through independent
investment advisers. Envestnet compiles an array of third-party investment advisers that
provide discretionary investment management services. Envestnet is providing only
administrative services and is not responsible for the selection of the specific investment
choices made with respect to the SAS program.
• ManagerxChange Managers Program (MMP):
This program is closed to new clients, however, clients currently in this program can
continue to use it.
NEA offers investment management and advice through ManagerxChange Managers
Program ("MMP"), which provides consulting services and investment management
services of third-party investment advisers. MMP is generally designed for accounts with
a minimum asset value of $10,000.
The program provides asset consulting services in connection with the selection of the
third-party investment advisers who manage model-based portfolios on a discretionary
basis, taking into consideration the client's investment objectives, financial situation, risk
tolerance, and reasonable investment guidelines. MMP also provides asset allocation,
ongoing consultations, and performance measurement reports.
NEA performs the third-party manager due diligence and performance reporting. NEA
compiles an approved list of third-party investment advisers. To be included on the
approved list, third party investment advisers are subject to a comprehensive review and
analysis by NEA. NEA will run risk and return screens, perform peer analysis reviews and
have meetings on a periodic basis.
NEA performs management searches on various registered investment advisers. Based
ADV Part 2A – Firm Brochure Page 8 NewEdge Advisors, LLC
on the client's individual circumstances and needs, we determine which selected
registered investment adviser's ("adviser" or "asset manager") portfolio management
style is appropriate for that client. Factors considered in making this determination
include account size, risk tolerance, the opinion of each client and the investment
philosophy of the selected asset manager. Clients should refer to the asset manager's Firm
Brochure or other disclosure document for a full description of the services offered. Client
meetings are available on a regular basis, or as determined by the client, to review the
account.
On an ongoing basis, we monitor the performance of the asset manager(s). If we
determine that a particular adviser is not providing sufficient management services to the
client or is not managing the client's portfolio in a manner consistent with that client's
financial objectives, then we may move the client’s portfolio to a different asset manager
and/or program sponsor. Under this scenario, our firm retains the discretion to hire and
fire the asset manager and/or move the client’s portfolio to a different program.
At least annually, we communicate with the client to review and update, as necessary, the
client's financial objectives. However, should there be any material change in the client's
personal and/or financial situation, we should be notified immediately to determine
whether any review and/or revision of the client's financial objectives is warranted.
LPL SPONSORED ADVISORY PROGRAMS:
Strategic Wealth Management (SWM) is a custodial account opened with LPL which is used by
NewEdge to manage client assets. NewEdge IARs use the SWM platform to directly manage their
client(s) assets on either a discretionary or non-discretionary basis using the investment advisory
agreements of NewEdge.
When appropriate certain advisors can provide additional advisory services through programs
sponsored by LPL. Below is a brief description of each LPL advisory program available to us.
NewEdge has imposed a stated firm maximum of 2.50% for the use of any advisory programs
sponsored by NewEdge or through other entities available to the IAR of NewEdge, even though
LPL advisory programs allow an annualized stated maximum of 3.00%. For more information
regarding the LPL programs, including more information on the advisory services and fees that
apply, the types of investments available in the programs and the potential conflicts of interest
presented by the programs please see the LPL Financial Form ADV Part 2A or the applicable LPL
program’s Wrap Fee Program Brochure and the applicable LPL Financial client agreement.
• Manager Access Select Program (MAS):
MAS provides clients access to the investment advisory services of professional portfolio
management firms for the individual management of client accounts. We will assist clients
in identifying a third-party portfolio manager (Portfolio Manager) from a list of Portfolio
Managers made available by LPL Financial. The Portfolio Manager manages clients’ assets
on a discretionary basis. We will provide initial and ongoing assistance regarding the
Portfolio Manager selection process. A minimum account value of $100,000 is required
for Manager Access Select, however, in certain instances, the minimum account size may
be lower or higher.
• Optimum Market Portfolios Program (OMP):
OMP offers clients the ability to participate in a professionally managed asset allocation
ADV Part 2A – Firm Brochure Page 9 NewEdge Advisors, LLC
program using Optimum Funds Class I shares. Under OMP, the client will authorize LPL
Financial on a discretionary basis to purchase and sell Optimum Funds pursuant to
investment objectives chosen by the client. We will assist the client in determining the
suitability of OMP for the client and assist the client in setting an appropriate investment
objective. IARs will have discretion to select a mutual fund asset allocation portfolio
designed by LPL consistent with the client’s investment objective. LPL Financial will have
discretion to purchase and sell Optimum Funds pursuant to the portfolio selected for the
client. LPL Financial will also have authority to rebalance the account. A minimum
account value of $15,000 is required for OMP.
• Model Wealth Portfolios Program (MWP):
MWP offers clients a professionally managed mutual fund asset allocation program. We
will obtain the necessary financial data from the client, assist the client in determining
the suitability of the MWP program and assist the client in setting an appropriate
investment objective. We initiate the steps necessary to open an MWP account and have
discretion to select a model portfolio designed by LPL Financials’ Research Department
consistent with the client’s stated investment objective. LPL Financials’ Research
Department is responsible for selecting the mutual funds within a model portfolio and for
making changes to the mutual funds selected. The client will authorize LPL Financial to
act on a discretionary basis to purchase and sell mutual funds, including in certain
circumstances exchange traded funds and to liquidate previously purchased securities.
The client will also authorize LPL Financial to effect rebalancing for MWP accounts.
The MWP program may make available model portfolios designed by strategists other
than LPL’s Research Department. If such models are made available, we will have
discretion to choose among the available models designed by LPL and outside strategists.
A minimum account value of $100,000 is required for MWP.
• Personal Wealth Portfolios Program (PWP):
PWP offers clients an asset management account using asset allocation model portfolios
designed by LPL Financial. We will have discretion for selecting the asset allocation
model portfolio based on client’s investment objective. We will also have discretion for
selecting third party money managers (PWP advisors) or mutual funds within each asset
class of the model portfolio. LPL Financial will act as the overlay portfolio manager on all
PWP accounts and will
be authorized to purchase and sell on a discretionary basis mutual
funds and equity and fixed income securities. A minimum account value of $250,000 is
required for PWP.
• Guided Wealth Portfolios (GWP):
GWP offers clients the ability to participate in a centrally managed, algorithm-based
investment program, which is made available to users and clients through a web-based,
interactive account management portal (“Investor Portal”). Investment recommendations
to buy and sell open-end mutual funds and exchange-traded funds are generated through
proprietary, automated, computer algorithms (collectively, the “Algorithm”) of Xulu, Inc.,
doing business as FutureAdvisor (“FutureAdvisor”), based upon model portfolios
constructed by LPL and selected for the account as described below (such model portfolio
selected for the account, the “Model Portfolio”). Communications concerning GWP are
intended to occur primarily through electronic means (including but not limited to,
through email communications or through the Investor Portal), although NewEdge
ADV Part 2A – Firm Brochure Page 10 NewEdge Advisors, LLC
Advisors IARs will be available to discuss investment strategies, objectives, or the account
in general in person or via telephone.
A preview of the Program (the “Educational Tool”) is provided for a period of up to forty-
five (45) days to help users determine whether they would like to become advisory clients
and receive ongoing financial advice from LPL, FutureAdvisor and NEA by enrolling in the
advisory service (the “Managed Service”). The Educational Tool and Managed Service are
described in more detail in the GWP Program Brochure. Users of the Educational Tool are
not considered to be advisory clients of LPL, FutureAdvisor or NEA, do not enter into an
advisory agreement with LPL, FutureAdvisor or NEA, do not receive ongoing investment
advice or supervisions of their assets, and do not receive any trading services. A minimum
account value of $5,000 is required to enroll in the Managed Service.
FINANCIAL PLANNING & CONSULTING:
We provide a variety of financial planning and consulting services to individuals, families and
other clients regarding the management of their financial resources based upon an analysis of the
client’s current situation, goals, and objectives. Generally, such financial planning services will
involve preparing a financial plan or rendering a financial consultation for clients based on the
client’s financial goals and objectives. This planning or consulting may encompass one or more of
the following areas: investment planning, retirement planning, estate planning, charitable
planning, education planning, corporate and personal tax planning, cost segregation study,
corporate structure, real estate analysis, mortgage/debt analysis, insurance analysis, lines of
credit evaluation, business, and personal financial planning.
Our written financial plans or financial consultations rendered to clients usually include general
recommendations for a course of activity or specific actions to be taken by the clients. For
example, recommendations may be made that the clients begin or revise investment programs,
create, or revise wills or trusts, obtain or revise insurance coverage, commence or alter retirement
savings, or establish education or charitable giving programs. It should also be noted that we refer
clients to an accountant, attorney, or other specialist, as necessary for non-advisory related
services. For written financial planning engagements, we provide our clients with a written
summary of their financial situation, observations, and recommendations. For financial
consulting engagements, we usually do not provide our clients with a written summary of our
observations and recommendations as the process is less formal than our planning service. Plans
or consultations are typically completed within six (6) months of the client signing a contract with
us, assuming all the information and documents we request from the client are provided to us
promptly. Implementation of the recommendations will be at the discretion of the client.
Where appropriate, and under written agreement with the Client, we may provide ongoing
planning and consulting services for Clients who wish to be provided with such subscription-
based services. These services will be delivered directly by the IAR, and payment thereof will be
established using a 3rd party technology vendor – AdvicePay. AdvicePay will allow for the IAR
and Client to establish an appropriate periodic payment plan (either monthly or quarterly)
handled directly by the Client through electronic invoicing.
RETIREMENT PLAN CONSULTING:
Our firm provides retirement plan consulting services to employer plan sponsors on an ongoing
basis. Generally, such consulting services consist of assisting employer plan sponsors in
establishing, monitoring and reviewing their company's participant-directed retirement plan. As
the needs of the plan sponsor dictate, areas of advising could include investment options, plan
ADV Part 2A – Firm Brochure Page 11 NewEdge Advisors, LLC
structure and participant education. Retirement Plan Consulting services typically include:
• Establishing an Investment Policy Statement – Our firm will assist in the development of
a statement that summarizes the investment goals and objectives along with the broad
strategies to be employed to meet the objectives.
• Investment Options – Our firm will work with the plan sponsor to evaluate existing
investment options and make recommendations for appropriate changes.
• Asset Allocation and Portfolio Construction – Our firm will develop strategic asset
allocation models to aid Participants in developing strategies to meet their investment
objectives, time horizon, financial situation, and tolerance for risk.
• Investment Monitoring – Our firm will monitor the performance of the investments and
notify the client in the event of over/underperformance and in times of market volatility.
In providing services for retirement plan consulting, our firm does not provide any advisory
services with respect to the following types of assets: employer securities, real estate (excluding
real estate funds and publicly traded REITS), participant loans, non-publicly traded securities or
assets, other illiquid investments, or brokerage window programs (collectively, “Excluded
Assets”).
All retirement plan consulting services shall follow the applicable state laws regulating
retirement consulting services. This applies to client accounts that are retirement or other
employee benefit plans (“Plan”) governed by the Employee Retirement Income Security Act of
1974, as amended (“ERISA”). If the client accounts are part of a Plan, and our firm accepts
appointment to provide services to such accounts, our firm acknowledges its fiduciary standard
within the meaning of Section 3(21) or 3(38) of ERISA as designated by the 3(21) or 3(38)
Investment Advisory Agreement with respect to the provision of services described therein and
limited to only the services specifically elected to be performed per the executed agreement.
PLAN PARTICIPANT NON-WRAP PORTFOLIO MANAGEMENT:
We offer portfolio management services to participant level retirement accounts such as 401k,
Profit Sharing Plans (“PSPs”), etc. These plans are offered through Fidelity via brokerage link
accounts and Schwab through Personal Choice Retirement Accounts (PCRA). We offer Advisory
services on 401k, 457, or other accounts not held at one of custodians by use of Pontera, a third-
party platform that enables advisors to monitor, trade and rebalance their client’s assets
regardless of where they are held. A non-wrap agreement is required to establish management
of a held away account. Pontera accounts are only available for plan accounts for which the plan
has an authenticated website with username and password credentials. The plan dictates the
types of investments allowed in the Pontera account. The advisor is responsible for managing
the account based on those existing investment options.
REFERRALS TO THIRD PARTY MONEY MANAGERS:
Our firm may utilize the services of a third-party money manager for the management of client
accounts. Investment advice and trading of securities will only be offered by or through the chosen
third-party money manager. Our firm will not offer advice on any specific securities or other
investments in connection with this service. When referring clients, NewEdge Advisors requires our
affiliated IAR to utilize only providers and strategies approved through the appropriate channels.
NewEdge Advisors leverages due diligence resources of our strategic partnerships: LPL
Financial, Fidelity, and NewEdge Securities, Inc., along with an internal review as may be
required to meet the due diligence requirements for our clients. In order to assist in the selection
of a third-party money manager, our firm will gather client information pertaining to the financial
situation, investment objectives, and reasonable restrictions to be imposed upon the management
ADV Part 2A – Firm Brochure Page 12 NewEdge Advisors, LLC
of the account.
Our firm, through its IAR, will review the financial situation and objectives of our clients to
determine the need to communicate information to a third-party manager as warranted. IAR
will additionally assist Clients in understanding and evaluating the services provided by the
third-party money manager, including the review of third-party manager reports provided to the
Client as may be necessary. Clients will be expected to notify their IAR of any changes in their
financial situation, investment objectives, or account restrictions that could affect their financial
standing.
PENSION CONSULTING SERVICES:
We also provide several advisory services separately or in combination. While the primary clients
for these services will be pension, profit sharing and 401(k) plans, we offer these services, where
appropriate, to individuals and trusts, estates, and charitable organizations. Pension Consulting
Services are comprised of four distinct services. Clients may choose to use any or all of these
services.
• Investment Policy Statement Preparation (''IPS''):
We will meet with the client (in person or over the telephone) to determine an
appropriate investment strategy that reflects the plan sponsor's stated investment
objectives for management of the overall plan. Our firm then prepares a written IPS
detailing those needs and goals, including an encompassing policy under which these
goals are to be achieved. The IPS also lists the criteria for selection of investment vehicles
as well as the procedures and timing interval for monitoring of investment performance.
• Selection of Investment Vehicles:
We assist plan sponsors in constructing appropriate asset allocation models. We will then
review various mutual funds (both index and managed) to determine which investments
are appropriate to implement the client's IPS. The number of investments to be
recommended will be determined by the client, based on the IPS.
• Monitoring of Investment Performance:
We monitor client investments continually, based on the procedures and timing intervals
delineated in the IPS. Although our firm is not involved in any way in the purchase or sale
of these investments, we supervise the client's portfolio and will make recommendations
to the client as market factors and the client's needs dictate.
• Employee Communications:
For pension, profit sharing and 401(k) plan clients with individual plan participants
exercising control over assets in their own account (''self-directed plans''), we may also
provide quarterly educational support and investment workshops designed for the plan
participants. The nature of the topics to be covered will be determined by us and the client
under the guidelines established in ERISA Section 404(c). The educational support and
investment workshops will NOT provide plan participants with individualized, tailored
investment advice or individualized, tailored asset allocation recommendations.
ADV Part 2A – Firm Brochure Page 13 NewEdge Advisors, LLC
BUSINESS CONSULTING SERVICES:
NEA may provide consulting services to clients regarding their corporate and personal business
affairs not involving securities. Fees of this nature are negotiable, and take the form of hourly fees,
project fees, or contingent fees.
When NEA prepares a business plan or assists a client in the preparation of a package utilized in a
request for bank financing, the client is billed on an hourly basis or on a fixed fee basis.
Clients can also receive investment advice on a more focused basis. This may include advice on only
an isolated area(s) of concern such as estate planning, retirement planning, or any other specific
topic. NEA has analyzed and offered advice on partnerships investing in private equity, managed
futures, agricultural operations, communications ventures, research and development, equipment
leasing, mortgage investment, private investments in financial institution securities, and energy
and manufacturing companies. We also provide specific consultation and administrative services
regarding investment and financial concerns of the client.
LIMITATIONS: As individuals of NEA may be registered as representatives of a broker-dealer
and/or as insurance agents/brokers of various insurance companies, consulting recommendations
are limited to only those products approved through the outside business activity process of those
broker dealers.
Regulatory Assets Under Management
As of December 31, 2023, we manage $17,596,788,924 on a discretionary basis and
$835,641,900 on a non-discretionary basis.
How We Are Compensated for Our Advisory
Generally, NEA does not have stated account minimums unless specifically stated below in
investment program offerings.
The maximum annual fee to be charged to the client’s account(s) will not exceed 2.50%. This
amount is attributed to legacy MidAtlantic account. For new accounts, the maximum annual fee
charged to client accounts will not exceed 2.5%. The fee to be assessed to each account will be
detailed in the client’s signed advisory agreement with NewEdge Advisors, LLC, and as appropriate
where LPL is the custodian, the LPL Account Application or LPL Tiered Fee Authorization form. Fees
will be identified for Fidelity, Goldman Sachs, Raymond James or Schwab directly through NewEdge
Advisors, LLC. Where LPL, Fidelity, Goldman Sachs, Raymond James or Schwab is the custodian,
Fees are billed on a pro-rata basis quarterly in advance based on the value of the account(s) on the
last day of the previous quarter. Fees are negotiable and will be deducted from the account(s). If
accounts are opened during the quarter, the pro-rata advisory fees will be deducted during the next
regularly scheduled billing cycle. In rare cases, our firm will agree to direct bill clients. As part of
this process, Clients understand the account custodian will send statements at least quarterly,
showing all disbursements for each account, including the amount of the advisory fees paid to us.
Please note that fees will be adjusted for deposits and withdrawals made during the quarter.