Item 5. A: Asset-based Fees and Compensation -added language regarding variable
annuities, added language about the trading practices under our dual contract offering with
PIMCO
Item 5. C: Other Fees paid by clients- added additional language regarding fees
Item 5.D.4. TAMP Program Considerations: added language regarding compensation
Item 5 D.5: Other Compensation Paid to Financial Advisors – added additional language
regarding compensation
Item 8. C. Risk of Loss: added language regarding additional risk factors with investing
and with specific products
Securities and Advisory Services offered through Cantella & Co., Inc. Member FINRA/SIPC.
Cantella is a federally registered investment advisor with the Securities and Exchange
Commission.
Item 3: Table of Contents
Item 2: Material Changes ......................................................................................................... 50
Item 3 Table of Contents........................................................................................................... 51
Item 4: Services, Fees and Compensation ............................................................................... 52
Item 5: Account Requirements and Types of Clients ............................................................... 56
Item 6: Portfolio Manager Selection and Evaluation ............................................................... 56
Item 7: Client Information Provided to Portfolio Managers .................................................... 57
Item 8: Client Contact with Portfolio Managers ...................................................................... 57
Item 9: Additional Information ……………………………………………………………...57
Item 4: Services, Fees and Compensation
Cantella provides financial advisor-directed, strategist-directed investment management and investment
advisory services through several programs, including the Cantella Managed Investments Program (“now
known as CMI bundled)”), programs made available to Cantella and other investment advisers by Cantella’s
qualified custodians (“Custodial Programs”), and Qualified Retirement Plan Program (“Qualified Plan”).
The services provided by Cantella include:
Assessment of the client’s investment needs and objectives;
Development of an asset allocation strategy designed to help clients achieve their
objectives;
Recommendations on suitable style allocations;
Identification of asset managers and investment vehicles meeting objective and/or
subjective criteria;
Engagement of selected asset managers and investment vehicles on behalf of the client;
Review of client accounts to ensure adherence to policy guidelines and asset allocation and;
Recommendations for account rebalancing, if necessary.
Services available through our Qualified Retirement Plan Program are detailed in Item 4, Advisory
Business, 5. Retirement Services
Though all of the above referenced services are available, Cantella does not require the client to utilize
any or all of the listed services.
Each of the programs allows for financial advisor-directed investment management on a discretionary
or non-discretionary basis. For Clients electing the CMI bundled option, broader access to strategist-
directed investment management is available through RiskPro.
CMI Account Options. Accounts can be opened at NFS, Pershing and Raymond James. Clients are
placed in financial advisor-managed accounts or strategist-directed model portfolios based on the
client’s investment needs, goals, and investment criteria. CMI accounts are managed on a discretionary
basis unless the client specifically opts out of discretionary account management. Clients have three
options when establishing a CMI account.
Advisor-directed Asset Management. Financial advisors directly manage client accounts
consistent with the client’s risk profile and investment objectives.
Single Sleeve Strategist Asset Management. Client accounts are invested under the program of
a single strategist (only available in the full /bundled version of CMI).
Unified Managed Account Asset Management. The UMA option allows a client to utilize
multiple strategists or a combination of strategists and advisor-directed strategies in one account
(only available in the full/bundled version of CMI).
In CMI, clients can invest in a wide variety of investment products, including exchange traded
products, fixed income investments, mutual funds, and individual stocks.
Cantella has co-advisory relationships on the CMI platform. Please refer to “Co-Advisory
Relationships” under Item 4. Advisory Business within the main brochure for information on this type
of relationship.
Custodial Program Account Options. Cantella uses National Financial Services, Pershing Advisory
Solutions, Pershing LLC and Raymond James Financial Services as its qualified custodians. Each of
these custodians sponsor wrap fee programs that they make available to investment advisers that custody
assets on their custodial platforms. In these cases, Cantella is also a sponsor of the programs but is not
the portfolio manager. Clients considering a Custodial Program account are provided with the qualified
custodians’ wrap fee brochure and must review that document for important disclosures regarding that
account program. Additionally, please refer to the Sub-Advisory Relationships under Item 4. Advisory
Business within the main brochure.
Fees.
Clients will compensate Cantella for investment advisory services on an annual basis at the rate set forth in
the Investment Advisory Client Agreement. For CMI bundled accounts, the Advisory Fee will be paid
...