a. Non-Discretionary Advisory Services
JSAM offers non-discretionary Advisory Services, to clients generally referred by Safra National Bank of New York as disclosed in Item 14 (“Client Referrals and Other Compensation”) of this Brochure. JSAM provides ongoing recommendations to clients by identifying potential investments, based on and tailored to each client’s individual needs. Recommendations may include private funds (hedge funds), mutual funds, fixed income instruments, equities and derivatives, as well as any other investment that JSAM may deem suitable for the client. JSAM typically monitors, on an ongoing basis, 40 to 80 different investment opportunities as part of its process, predominantly private funds (pooled investment vehicles exempt from Investment Company Act of 1940 registration).
Clients are responsible for approving the investments presented by JSAM, as well as the allocation, if any, to cash, and for implementing selected investments with their custodian. JSAM will not have discretionary authority to make investment decisions or to execute the transactions for clients without the client’s consent. JSAM receives from its clients an advisory fee.
b. Discretionary Advisory Services
JSAM offers discretionary advisory services to clients generally referred by Safra National Bank of New York as disclosed in Item 14 (“Client Referrals and Other Compensation”) of this Brochure. Upon execution and acceptance of a JSAM Discretionary Investment Agreement, JSAM implements the investment strategies based on and tailored to that client’s individual needs. Generally, JSAM serves as the sole investment adviser. JSAM receives from its client an advisory fee.
c. Investment Management Services
As of the date of this brochure, JSAM serves as the investment adviser to private fund-of-one structures. In addition, JSAM serves as the sub-adviser to a private pooled investment vehicle, the securities of which are offered on a private placement bases to investors outside the United States. JSAM receives from its client an advisory fee.
d. Managed Account Services
JSAM offers model portfolio investment strategies to clients either as a sole investment product or in various combinations or blends, as determined in reaching the clients’ specific investment objectives. This includes a wide range of asset classes (i.e., fixed income and mutual funds) through actively managed accounts such as Unified Managed Accounts (“UMAs”). JSAM offers two types of UMAs: 1) Asset Allocation UMAs for different risk/reward profiles (i.e., Conservative, Balanced and Aggressive), and 2) Single Strategy UMAs focused on a specific strategy (i.e., fixed income, equities).
The clients are responsible for selecting the investment strategy from the model portfolios presented by JSAM. When a client invests in a UMA, the client directly owns the individual securities. The client may request limitations or restrictions on investing in certain securities and/or asset classes. The imposition of limitations or restrictions on an UMA portfolio may result in investment performance results and account volatility that could be materially different than that experienced by client accounts without such restrictions or limitations. JSAM may be unable to provide its services to clients with certain investment limitations or restrictions. JSAM receives from its clients an advisory fee.
Institutional Investment Consulting Services
JSAM also provides consulting services to certain affiliates through a service level agreement whereby JSAM provides administrative services, information, market perceptions and advice in regard to New York’s asset market, including insights, analysis and updates of markets, private funds and any other investments as identified by JSAM.
Based on its ongoing investment research, JSAM provides research reports and, if requested, specific recommendations to affiliates that have contracted for this service. JSAM does not provide advice to the affiliate’s clients as part of this consulting service. JSAM receives a fee for these services.