Alpine Advisors, LLC



2382240182878Alpine Advisors, LLCInvestment Advisory ServicesFirm Brochure(Part 2A of Form ADV)September 13, 2012Contact: James Rex Ivie, Compliance Officer233 Hillside Cir., Alpine, UT 84004Phone: (801) 980-0241Fax: (801) 772-20141. Disclosure BrochureThis brochure provides information about the qualifications and business practices of Alpine Advisors, LLC (Alpine Advisors). If you have any questions about the contents of this brochure, please contact us at the telephone number noted below. The information in this brochure has not been approved or verified by the U.S. Securities and Exchange Commission or by any state authority. Additional information is available on the SEC’s website at adviserinfo.. Registration does not imply a certain level of skill or training. Alpine Advisors, LLC’s CRD number is: 1579412. Material Changes Alpine Advisors, LLC has not yet filed an annual update amendment using the Form ADV Part 2A. Therefore there are no material changes to report.3. Contents TOC \o "1-3" \h \z \u 1. Disclosure Brochure PAGEREF _Toc324362557 \h 12. Material Changes PAGEREF _Toc324362558 \h 13. Contents24. Advisory Business PAGEREF _Toc324362559 \h 35. Fees and Compensation PAGEREF _Toc324362571 \h 46. Performance-Based Fees & Side-By-Side Management PAGEREF _Toc324362577 \h 57. Types of Clients PAGEREF _Toc324362578 \h 58. Methods of Analysis, Investment Strategies, & Risk of Loss PAGEREF _Toc324362580 \h 59. Disciplinary Information PAGEREF _Toc324362586 \h 710. Other Financial Industry Activities and Affiliations PAGEREF _Toc324362587 \h 711. Code of Ethics, Participation, or Interest in Client Transactions712. Brokerage Practices PAGEREF _Toc324362591 \h 813. Review of Accounts PAGEREF _Toc324362592 \h 814. Client Referrals and Other Compensation815. Custody816. Investment Discretion817. Voting Client Securities PAGEREF _Toc324362596 \h 918. Financial Information PAGEREF _Toc324362597 \h 919. Requirements For State Registered Advisors PAGEREF _Toc324362598 \h 94. Advisory BusinessAlpine Advisors has been in business since 2012. As a Registered Investment Advisor we adhere to a fiduciary standard of care, which requires us to act in and serve a client’s best interest. The principal owner of Alpine Advisors is James Rex Ivie. Alpine Advisors provides two related but distinct services: Financial Planning and Investment Advisory Services. Because not all clients need both services we have chosen to charge for each service separately. Financial Planning Services We strongly believe that all clients should do some financial planning to define and achieve their long term goals. Alpine Advisors works with clients to define their financial objectives and to develop strategies for reaching those objectives. Through a process of interviews and planning sessions the client and advisor will explore the client’s long term vision for their (or their organization’s) future. Personal Planning Services Financial plans and financial planning may include, but are not limited to: investment analysis, estate planning, life insurance, tax concerns, retirement and financial independence, education planning, cash flow management, debt management, special needs planning and risk management. These services are based on fixed fees and hourly fees and the final fee structure is documented in the Financial Planning Agreement. Business Planning Services Business planning services may include, but are not limited to: building financial portion of a business plan, business pro-forma creation and analysis, company benefit programs, company retirement programs, succession planning, business valuation and key employee planning. These services are based on fixed fees and hourly fees and the final fee structure is documented in the Financial Planning Agreement. Investment Advisory Services Alpine Advisors provides fee-only investment advisory services for individuals, high net worth individuals, trusts, estates, small businesses, and other investment advisory firms. Investment Supervisory Services REF BKRIANAMEABBREVIATION \h \* MERGEFORMAT Alpine Advisors offers ongoing portfolio management services based on the individual goals, objectives, time horizon, and risk tolerance of each client. Alpine Advisors creates an Investment Policy Statement for each client, which outlines the client’s current situation (income, tax levels, and risk tolerance levels) and then constructs a plan (the Investment Policy Statement) to aid in the selection of a portfolio that matches each client’s specific situation. Investment Supervisory Services include, but are not limited to, the following: investment strategy, personal investment policy, asset allocation, asset selection, risk tolerance, regular portfolio monitoring. Alpine Advisors evaluates the current investments of each client with respect to their risk tolerance levels and time horizon. IF BKDISCRETION = Yes "AA will request discretionary authority from clients in order to select securities and execute transactions without permission from the client prior to each transaction." \* MERGEFORMAT ""Alpine Advisors will request discretionary authority from clients in order to select securities and execute transactions without permission from the client prior to each transaction. Risk tolerance levels are documented in the Investment Policy Statement, which is given to each client. Investment Philosophy and Style Alpine Advisors knows that each client’s situation and needs are unique, and that their investment portfolio should reflect this. It is important that each client, with the help of their investment advisor, create an Investment Policy Statement (IPS) that captures the essence of the client’s situation and investment personality. Alpine Advisors uses the IPS to set conditions on the types of securities to be included in the client’s account(s). We then use both publicly available, and subscription service data to do fundamental, technical, and cyclical analysis to select specific investments. We use both active and passive investment vehicles to build a diversified portfolio at a low total cost to the client. Types of Investments Alpine Advisors generally limits its investment advice and money management to mutual funds, equities, bonds, fixed income, debt securities, ETFs, real estate, and government securities. Alpine Advisors may use other securities as well to help diversify a portfolio when applicable.Clients may specify restrictions in investing in certain securities or types of securities in accordance with their values or beliefs. However, if the restrictions prevent Alpine Advisors from properly servicing the client account, or if the restrictions would require Alpine Advisors to deviate from its standard suite of services, Alpine Advisors reserves the right to end the relationship.Wrap Fee ProgramsA wrap fee program is an investment program where the investor pays one stated fee that includes management fees, transaction costs, fund expenses, and any other administrative fees. Alpine Advisors does not participate in any wrap fee program. Cancellation of AgreementA client may terminate an advisory agreement at any time for any reason. The client must submit a written termination request at which time all earned advisory fees are due and payable. If the advisory agreement is for a managed account, advisory fees will be effective for all days up to and including the day the termination request is submitted. Amounts Under ManagementAlpine Advisors is a newly formed investment advisory firm, as such its current assets under management are not yet reported. 5. Fees and CompensationThe client’s written agreement delineates Alpine Advisors’ fees. Financial Planning FeesThe nature of the services and the complexity of each client’s circumstances determine the financial planning fee. The financial planning fee typically ranges from $500 to $5,000 annually. Fixed financial planning fees are negotiable. Fifty percent of the financial planning fee will be due upon signing the Financial Planning Services Agreement, with the balance due upon presentation of the plan to the client. Typically the financial plan will be presented to the client within 30 days of the Financial Planning Agreement date, provided that all information needed to prepare the financial plan has been promptly provided by the client. The client may terminate the Financial Planning Services Agreement and receive a full refund of the initial fee within five business days from the date of the agreement by sending written notice to Alpine Advisors. The notice must be received by Alpine Advisors in this five-day period. After the five day period, either the Client or Alpine Advisors may cancel the Agreement by giving ten (10) days written notice to Alpine Advisors. The agreement is terminated upon receipt by the Client of the final plan and receipt by Alpine Advisors of the final fee. If a client requests advice on a particular subject such as a real estate purchase, Alpine Advisors will provide the service for an hourly fee rather than for the fixed financial planning fee. The fee for this service will be $150.00 per hour. Annual planning fees may be waived after the first year for clients with over $100,000 under management at Alpine Advisors. Clients have the option to pay for financial planning services via check, credit card or direct account debit at the custodian.Investment Advisory Fees Advisory fees are charged quarterly in arrears at the beginning of each calendar quarter as a percentage of assets under management. Fees are negotiable under limited circumstances and will be deducted from the account for which the services are provided unless otherwise arranged during account set up. Fees for investment management are payable according to the following schedule: Account Assets Annual Fee Under $1,000,001 0.85%Between $1,000,001 and $2,000,0000.75%Between $2,000,001 and $3,000,0000.65%Over $3,000,0010.55%Brokerage Fees, Account Fees and Security Expenses In addition to our advisory fees, clients are responsible for the fees and expenses charged by custodians and broker dealers, including, but not limited to, any transaction charges imposed by a broker dealer with which an independent investment manager effects transactions for the client’s account(s). Most investment products have internal expenses that are ultimately paid by the client whether they see an invoice or not. These expenses must be disclosed in a prospectus written for that particular security. Alpine Advisors specifically recommends and uses securities with no loads and relatively low internal expenses. Alpine Advisors does not receive any compensation or portion of any of the fees collected by the securities used in client portfolios. Please see Item 12 “Brokerage Practices” of this brochure for additional information.Outside Compensation for the Sale of Securities to ClientsNeither Alpine Advisors nor its supervised persons accept any compensation for the sale of securities or other investment products, including asset-based sales charges or services fees from the sale of mutual funds.6. Performance-Based Fees & Side-By-Side Management REF BKRIANAMEABBREVIATION \h \* MERGEFORMAT Alpine Advisors does not accept performance-based fees or other fees based on a share of capital gains on or capital appreciation of the assets of a client.7. Types of ClientsAlpine Advisors provides financial planning and investment management services to individuals, high-net-worth individuals, families, corporate pension plans, profit‐sharing plans, small business owners, and other advisory firms. Minimum Account SizeThere is an account minimum, $100,000, which may be waived by the investment advisor, based on the needs of the client and the complexity of the situation. 8. Methods of Analysis, Investment Strategies, & Risk of LossAlpine Advisors analysis is based upon a number of factors including those derived from commercially available software technology, securities rating services, general market and financial information, and specific investment analysis requested by clients from time to time. Alpine Advisors main source of information includes commercially available investment services, financial newspapers, periodicals, and issue-prepared information. Alpine Advisors may also use outside consultants to provide expertise in certain circumstances, but Alpine Advisors is solely responsible for all investment recommendations given to client. Client is advised that the investment recommendations and advice offered by Alpine Advisors are not legal advice or accounting advice. Client should coordinate and discuss the impact of financial advice with their attorney and/or accountant. Client is advised that it is necessary to inform Alpine Advisors promptly with respect to any changes in financial situation and/or investment goals and objectives. Asset AllocationWe focus on properly allocating the client’s assets. Asset allocation aims to balance risk and reward by apportioning portfolio assets according to the client’s individual goals, risk tolerance and investment horizon. The asset allocation we recommend is based on a combination of factors important to the client including age of the client, distribution needs, investment horizon, risk tolerance, and investing personality. DiversificationWe diversify the types of investments in a client account. Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. A portfolio of different kinds of investments generally yields higher returns over time and is also expected to pose a lower risk than any individual investment found within the portfolio. Investment StrategiesAlpine Advisors primarily uses strategic asset allocation. We set an asset allocation, periodically rebalancing the portfolio in order to maintain a long‐term chosen asset allocation. Client’s objectives may change over time and the asset allocation will be adjusted accordingly. Alpine Advisors uses actively‐managed funds and passively‐managed index and exchange traded funds when appropriate. Risk of LossClients should be prepared for the risk inherent to security investment. We work to minimize all risks including interest-rate risk, market risk, inflation risk, purchasing power risk, currency risk, reinvestment risk, business risk, liquidity risk, and financial risk. Accounts managed by Alpine Advisors are not guaranteed and can lose money. Our securities analysis methods rely on the assumption that the companies whose securities we purchase and sell, the rating agencies that review these securities, and other publicly-available sources of information about these securities, are providing accurate and unbiased data. While we are alert to indications that data may be incorrect, there is always a risk that our analysis may be compromised by inaccurate or misleading information. We further rely on additional data from third parties and internal proprietary data that may also be incorrect. A risk of ETF, ETN, Fund and Partnership analysis is that, as in all securities investments, past performance does not guarantee future results. A manager, index, or instrument that has been successful may not be able to replicate that success in the future. In addition, there is also a risk that a manager may change or deviate from the stated investment mandate or strategy of the ETF, ETN, Fund or Partnership which could make the ETF, ETN, Fund or Partnership less suitable for the client’s portfolio. Past performance is no guarantee of future results. All investments, including those managed by Alpine Advisors, involve risk factors that prospective investors should consider before investing. These investments are suitable only for investors who are willing to accept substantial risks of loss, including loss of entire principal. The success of an investment’s activities will be affected by general economic and market conditions, such as interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, trade barriers, currency exchange controls, and national and international political circumstances, including terrorism, war or the threat of terrorism or war. These factors may affect the level and volatility of securities prices and the liquidity of the investments. Volatility or illiquidity could impact the Investment’s profitability or result in losses. Investments may include equity securities which generally involve a high degree of risk. Prices are volatile and market movements are difficult to predict. Furthermore, the investment may not hold a widely diversified portfolio of issues by industry or issuer. Some of these issuers may have small capitalizations, limited operating histories, limited following from Wall Street brokerage firms and may be vulnerable to competition from much larger companies. Clients should understand that investing in any securities, including mutual funds, ETFs, and ETNs involves a risk of loss of both income and principal that a client should be prepared to bear. Investment Management ProcessAlpine Advisors will draft an IPS specific to the client. This will contain details about the client’s investment goals and risk tolerance, and an overview of how the client’s assets will be invested. After the client agrees to the information in the IPS, Alpine Advisors will choose suitable investments and execute trades. 9. Disciplinary InformationAlpine Advisors has no legal or disciplinary events to disclose. 10. Other Financial Industry Activities and Affiliations James Rex Ivie is affiliated with, and has an ownership interest in, more than one business related to the financial and advisory industries. Those businesses are listed as follows: Financial Guard, LLCFinancial Guard, LLC is a non-affiliated registered investment advisor. Financial Guard, LLC develops internet-based investment advisory services and provides these services for a monthly fee. James Rex Ivie is the Compliance Officer and Product Manager and owns less than 10% of Financial Guard, LLC. Clients of Alpine Advisors will not be solicited to invest nor will they be referred to Financial Guard, LLC. Alpine Insurance Group, LLCAlpine Insurance Group, LLC is an insurance product resource provider. Alpine Insurance Group, LLC is owned by James Rex Ivie. James Rex Ivie is a licensed insurance agent. From time to time, he will offer clients advice or products from those activities. Clients should be aware that insurance services pay a commission and involve a conflict of interest, as commissionable products conflict with the fiduciary duties of a registered investment adviser. Alpine Advisors always acts in the best interest of the client; including the sale of commissionable products to advisory clients. Clients are in no way required to implement the plan through any representative of Alpine Advisors in such individual’s capacity as an insurance agent. Insurance products will not be sold through Alpine Advisors.11. Code of Ethics, Participation, or Interest in Client Transactions Alpine Advisors owners and employees will at various times have investments in the same securities as those held by clients, which could present an opportunity for a conflict of interest. To prevent self dealing and the appearance of self-dealing, Alpine Advisors has adopted a Code of Ethics and a set of procedures that provide for transparency and ensure ethical behavior. Specific to trading in securities, the procedure is as follows. All securities transactions for client accounts will be done in accordance with the guidelines or goals set out in the client's personal IPS. All securities transactions for Alpine Advisors private accounts will be done simultaneously with or after client account transactions are done for the same security. James Rex Ivie is the Chief Compliance Officer. He will monitor Alpine’s trades and will ensure that Alpine Advisor’s policy is followed. Ethical, competent, effective service is of the utmost importance to Alpine Advisors and its employees. Alpine Advisors has established a code of ethics to ensure that our service meets the highest standard of fair and ethical dealing. Any client or prospective client will be provided a complete Alpine Advisors code of ethics upon request. 12. Brokerage Practices Alpine Advisors will recommend Schwab Institutional, a division of Charles Schwab & Co., Inc., (CRD # 5393) to clients. In recommending brokers and dealers, Advisor will generally seek "best execution." Best execution means in recommending a broker or dealer Alpine Advisors will comply with its fiduciary duty to obtain best execution and as defined by the Securities Exchange Act of 1934 and will take into account such relevant factors as (a) price; (b) broker's or dealer's facilities, reliability and financial responsibility; (c) ability of the broker or dealer to effect transactions, part; (d) research and related brokerage services provided by such broker or dealer to the Advisor; and (e) any other factors the Advisor considers to be relevant. 13. Review of Accounts Alpine Advisors reviews every account at least quarterly. This review includes individual asset allocation, security performance review, and client investment policy statement review. Client request, individual security developments, changes in client objectives, economic and political events, and client life events also trigger account reviews. Reviews are conducted by James Rex Ivie, Managing Member, using the IPS as a guide for investment policy and asset choice. Each client will receive account statements monthly or at least quarterly from the broker dealer or other qualified custodian that details the client’s account including assets held and asset value. Alpine Advisors also sends portfolio statements directly to our clients at least twice per year. 14. Client Referrals and Other Compensation Alpine Advisors does not engage solicitors or pay related or non-related persons for referring potential clients to our firm. Alpine Advisors does not accept or allow our related persons to accept any form of compensation from a non-client in conjunction with the advisory services we provide to our clients. We may recommend the services of other professionals such as accountants, attorneys, or other services as when appropriate. Alpine Advisors and its advisors do not receive compensation in any form for these referrals. The professional service providers that we recommend are chosen based on our judgment of their competence, value, and sometimes geographical location. 15. CustodyAt no time does Alpine Advisors, its employees, or advisors have or maintain custody of client assets. Client assets are held at qualified third party custodian(s). That custodian will provide the client with regular account statements directly to their address of record or via email at the client’s discretion. Alpine Advisors also sends portfolio statements directly to our clients at least twice per year. Alpine Advisors urges our clients to carefully compare the information provided on these statements to ensure portfolio values are correct and current. Alpine Advisors, with client written authority, has limited custody of client’s assets through direct fee deduction of advisory fees only. If the client chooses to be billed directly by the Custodian, Alpine Advisors would have constructive custody over that account and must have written authorization from the client to do so.16. Investment Discretion All clients for whom Alpine Advisors provides ongoing account supervision are required to provide discretionary asset management authorization allowing us to place trades in a client's account without contacting the client prior to each trade to obtain permission. Alpine Advisors’ discretionary authority includes the ability, without contacting the client, to decide which security to buy or sell and the amount of the security bought or sold. This discretion is limited to each client’s investment policy guidelines, which are signed by the client and the client’s respective portfolio manager. The client provides Alpine Advisors discretionary authority via a limited power of attorney in the Investment Advisory Contract and in the contract between the client and the custodian. Clients may specify in writing as part of the IPS restrictions in investing in certain securities or types of securities in accordance with their values or beliefs. However, if the restrictions prevent Alpine Advisors from properly servicing the client account, or if the restrictions would require Alpine Advisors to deviate from its standard suite of services, Alpine Advisors reserves the right to end the relationship. 17. Voting Client Securities The client is responsible for voting proxies on securities held in their accounts. Proxy statements will be sent directly to the client from the issuer of the security or the custodian. 18. Financial InformationBecause of our specific business practices relating to collection of fees and custody of assets, Alpine Advisors is not required to disclose its balance sheet to the public. Alpine Advisors has never been the subject of a bankruptcy petition. 19. Requirements For State Registered AdvisorsAlpine Advisors currently has only one management person/executive officer; James Rex Ivie. REF BKRIAFIRSTMIDDLELAST \h \* MERGEFORMAT James Rex Ivie’s education and business background can be found on the Supplemental ADV Part 2B form. REF BKRIAFIRSTMIDDLELAST \h \* MERGEFORMAT James Rex Ivie’s other business activities can be found on the Supplemental ADV Part 2B form. Alpine Advisors does not accept performance-based fees or other fees based on a share of capital gains on or capital appreciation of the assets of a client. No management person at Alpine Advisors or Alpine Advisors has been involved in an arbitration claim or been found liable in a civil, self-regulatory organization, or administrative proceeding that is material to the client’s evaluation of the firm or its management. Neither Alpine Advisors, nor its management persons, has any relationship or arrangement with issuers of securities. ................
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