Client Relationship Summary


US Asset Management LLC

Retail Investor Customer Relationship Summary ● Form ADV Part 3 ● June 30, 2020

Item 1. Introduction— US Asset Management, LLC (“US Asset”) is an SEC Registered Investment Adviser providing investment advisory services to municipal and governmental entities and pension plans and some high net worth individuals (“retail investors”) as a sub-advisor. US Asset is not a broker-dealer. Brokerage and investment advisory services and fees differ; therefore, it is important for retail investors to understand the differences.

Free and simple tools are available to research firms and financial professionals at www.Investor.gov/CRS , which also provides educational materials about broker-dealers, investment advisers, and investing. Additional information about our Principals and operating executive officers can be found on the SEC’s website at www.adviserinfo.sec.gov

Item 2. Relationships and Services

What investment services and advice can you provide me?

US Asset offers investment advisory services to retail investors as a sub-advisor. As a sub-advisor, we are hired by an investment advisor to manage a portion of a portfolio under a certain investment strategy in which we have expertise and a proven track record. Our services as a sub-advisor include analyzing a client’s objectives and risk tolerance; creating asset allocations; conducting manager research; recommending securities; implementing the investment strategy; periodically monitoring the portfolio; account maintenance and reporting.

(i) Monitoring: We monitor retail investors’ investments daily, reconciling the accounts with the online services provided by our custodian—a financial entity such as a bank. Your personal funds are held separately and not commingled with our funds or other funds. All monitoring and custodial services are included in our all-inclusive fee described below in item 3.

(ii) Investment Authority: Our retail investment advisory services are discretionary. We implement and/or make changes to a client’s investment portfolio without the client’s consent, but in accordance with the client’s investment policy.

(iii) Limited Investment Offerings: We are currently limiting our retail investors to our Large Cap Core and Small Cap strategies.

(iv) Account Minimums and Other Requirements: Retail investor accounts are limited to pre-qualified high net worth individuals with a minimum starting balance of $1 Million. Depending on a client’s objectives, however, we occasionally retain a client with a smaller initial portfolio.

 

Given my financial situation, should I choose an investment advisory service?

High net worth individuals should discuss the advantages of hiring US Asset as a sub-advisor with their investment adviser. Hiring US Asset is a joint decision between the client and the advisor, and only after consultation as described in detail below.

 

How will you choose investments to recommend to me?

US Asset embraces the fiduciary standard requiring us to put your interests above our own. It also means that we must do our best to make sure to choose investments using accurate, complete and thorough information. We have been hired to make investment decisions for you. We do not dispense advice as part of our daily service. We meet with your investment advisor on at least one occasion to analyze your objectives, cash flow needs, risk tolerance, investment experience, financial situation, and tax concerns. We then construct an asset allocation tailored to your overall goals and objectives. We place trades under a “best execution” standard, meaning we trade securities with the best combination of low cost and efficient execution for you.

 

What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications mean?

Mr. Levick, US Asset’s Director of Investments, is FINRA Series 65 licensed. Mr. Levick earned a Bachelor of Science (BS) in Business Administration from the University of Pittsburgh and a Master’s in Business Administration (MBA) from Pace University.  He also completed courses from both Creighton University and The American College focused on portfolio analytics, compliance, taxation, and portfolio modeling.  Ms. Lutovsky, Portfolio Analyst, is FINRA Series 65 licensed. She is a graduate of the University of Pittsburgh, holding a BS/BA in finance. The Series 65 is an exam and securities license required for individuals to act as investment advisers in the US, indicating competency in laws, regulations, ethics, and various topics important to the role of a financial adviser.

 

Item 3. Fees, Costs, Conflicts, and Standard of Conduct

What fees will I pay?

Our fee schedule is based on the amount of assets under advisement on the last day of the calendar quarter. Accounts $500,000 to $1,000,000 are billed 1.00% per annum, Accounts $1,000,001 to $5,000,000 are billed at .85% per annum, and accounts in excess of that are negotiable. We bill our annual fee in arrears, quarterly. Your fee may differ from the fees set forth above so that US Asset can be flexible in adjusting to a client’s situation.

You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.

 

Help me understand how these fees and costs might affect my investments. If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

Your $10,000 investment will be invested entirely into your custodial account managed by US Asset and will go to work immediately. Depending on the strategy chosen, and the performance of the investments, your account should grow over time. At the end of each calendar quarter, the amount in your account will be calculated by the custodian and a statement will be available. Our fee will be calculated based on the balance of your account on the last day of the quarter multiplied by our agreed upon fee, which is all inclusive. Once our fees are paid, your account will retain a balance “net of fees.”

 

What are your legal obligations to me when acting as my investment adviser? How else does your firm make money and what conflicts of interest do you have?

US Asset is legally obligated to act as a fiduciary. When we act as your investment adviser, we act in your best interest and not put our interest ahead of yours. Avoiding conflicts of interest is important when acting as a fiduciary, which is why we disclose potential conflicts. As an independent investment advisor without affiliation to any bank or financial institution, US Asset does not have the conflicts of interest that might arise when dealing with an affiliated advisor. At the same time, however, the way we make money creates potential conflicts of interests. You should understand and ask us about these conflicts because, although we are a fiduciary and strive to eliminate any actual conflicts that may arise, there is the potential for conflicts that could affect the investment advice we provide you. Here are some examples to help you understand what this means: Investment advisers that charge asset-based fees could have a potential conflict of interest with their clients. That is because the more assets there are in a retail investor’s advisory account, the more a retail investor will pay in fees. Potentially, an advisor could have an incentive to encourage the retail investor to increase the assets in his or her account. Other potential conflicts could arise because 2 non-operating members of US Asset are affiliated with other financial firms. Joseph Wiesner is also affiliated with Piper Sandler, a broker-dealer, and Steve Maslek is employed by CIM Investment Management, Inc.

 

How might your conflicts of interest affect me, and how will you address them?

There could be times during US Asset’s engagement that a potential conflict of interest arises between US Asset and the client. For example, US Asset could have the opportunity to purchase securities from Piper Sandler that would offer the best execution for our clients. US Asset’s fee structure could potentially conflict with the interest of our clients, because the more assets there are in a retail investor’s advisory account, the more a retail investor will pay in fees. US Asset embraces its fiduciary duties to its client and would never place its interest above those of our client. In addition, our code of ethics and personal trading policies are designed to manage potential conflicts arising out of these relationships.  US Asset believes those policies and procedures, as put into practice, are adequate to ensure protection of its clients’ interests.

 

How do your financial professionals make money?

Our financial professionals are paid a salary, not commission. Their compensation is not based on the amount of client assets they service, nor the time and complexity required to meet a client’s needs, the product sold (i.e., differential compensation), or revenues the firm earns from their recommendations. US Asset does not engage in any wrap fee program, receive non-monetary research compensation from or share commissions with broker dealers.

 

Item 4. Disciplinary History

Do you or your financial professionals have legal or disciplinary history?

No. No one at US Asset have been involved in any legal, financial, or other “disciplinary” items to report in the last ten years.  We are obligated to disclose any disciplinary event that would be material to you when evaluating us to initiate a client/adviser relationship, or to continue a relationship with us. Visit www.Investor.gov/CRS for a free and simple search tool to research US Asset and our financial professionals.

 

Item 5. Additional Information

Retail investors can find additional information about US Asset’s investment advisory services at www.usasset.net

In addition, you can request a copy of this relationship summary by contacting Mr. Levick by calling (412) 231-8209 or faxing (412) 231-8210.

Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer? Who can I talk to if I have concerns about how this person is treating me?

Mr. Levick, a Registered Investment Advisor, is your primary contact person as above. Any concerns, complaints or questions about the relationship can be made to compliance@usasset.net.