10/18/2004
Pension Trustees Agenda
Date: 10/18/2004
Location: Council Chambers - City Hall
Call to Order
Approval of Minutes
1. Minutes - 09-13-2004
2. Correction to minutes - 06-14-2004
Pension Trustee Items
1. Accept the employees listed below into membership in the City of Clearwater's
Employees' Pension Plan.
2. Dorothy A. Reehling, Official Records and Legislative Services Department; Thomas L.
Miller, Police Department; and Steven Burch, Police Department, be granted regular
pensions under Section(s) 2.393 and 2.397 of the Employees' Pension Plan as
approved by the Pension Advisory Committee.
3. Approve a contract with Kalson & Associates for Asset Allocation Study for a cost of
$12,000 and for appropriate officials to execute same.
Other Business
Adjourn
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Pension Trustee Cover Memorandum
. ..................................................
Trackinq Number: 862
Actual Date: 10/18/2004
Subiect / Recommendation:
Accept the employees listed below into membership in the City of Clearwater's Employees'
Pension Plan.
Summary:
Pension Elig.
Name, Job. Class, & Dept.jDiv.
Hire Date Date
Joseph Hamm, Fleet Mechanic/Solid Waste/General Services 7/26/04 7/26/04
Kenneth Paul, Custodial Worker/Marine & Aviation 7/12/04 7/12/04
William Anderson, Public Utilities Technician I/Public Util. 7/27/04 7/27/04
Milisa Schnatterer, Accounting Clerk/Finance 8/9/04 8/9/04
Clifton Long, Public Utilities Technician I/Public Utilities 8/9/04 8/9/04
Christopher Gresham, Accounting Clerk/Finance 8/9/04 8/9/04
Timothy Ferlanie, Public Utilities Technician I/Public Util. 8/9/04 8/9/04
Sam Elliott, Public Utilities Technician I/Public Utilities 8/9/04 8/9/04
Lawrence Divine, Construction Inspector/Public Services 8/9/04 8/9/04
Khanh Doan, Utilities Chemist/Public Utilities 8/9/04 8/9/04
Toilea Fetuuaho, Library Assistant/Library 8/9/04 8/9/04
Chad Korince, Firefighter Paramedic/Fire 8/9/04 8/9/04
Robert Lee, Firefighter/Fire 8/9/04 8/9/04
Matt Lefort, Firefighter/Fire 8/9/04 8/9/04
Robert Palisi, Jr., Firefighter Paramedic/Fire 8/9/04 8/9/04
Jim Schaus, Firefighter/Fire 8/9/04 8/9/04
Blaise Sciarra, Firefighter Paramedic/Fire 8/9/04 8/9/04
Raymond Tracy, Firefighter Paramedic/Fire 8/9/04 8/9/04
Che Jean-Pierre, Public Utilities Technician I/Public Utilities 8/23/04 8/23/04
Brian Wilhite, Water Plant Operator C/Public Utilities 8/23/04 8/23/04
Oriqinatinq: Human Resources
Review Approval
Cvndie Goudeau
10-06-2004
15:25:30
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Pension Trustee Cover Memorandum
. ..................................................
Trackinq Number: 863
Actual Date: 10/18/2004
Subiect / Recommendation:
Dorothy A. Reehling, Official Records and Legislative Services Department; Thomas L. Miller,
Police Department; and Steven Burch, Police Department, be granted regular pensions under
Section(s) 2.393 and 2.397 of the Employees' Pension Plan as approved by the Pension Advisory
Committee.
Summary:
Dorothy A. Reehling, City Clerk Specialist, Official Records & Legislative Services Department,
was employed by the City on June 5, 1989, and her pension service credit is effective on that
date. Her pension will be effective December 1, 2004. Based on an average salary of
approximately $31,460 per year over the past five years, the formula for computing regular
pensions, and Ms. Reehling's selection of the Joint & Survivor Annuity, this pension will
approximate $13,254 annually.
Thomas L. Miller, Police Sergeant, Police Department, was employed by the City on AprilS,
1976, and his pension service credit is effective on October 9, 1976. His pension will be
effective September 1, 2004. Based on an average salary of approximately $67,043 per year
over the past five years, the formula for computing regular pensions, and Mr. Miller's selection of
the 100 % Joint & Survivor Annuity, this pension will approximate $50,389 annually.
Steven Burch, Police Lieutenant, Police Department, was employed by the City on May 12, 1980,
and his pension service credit is effective on that date. His pension will be effective September
1, 2004. Based on an average salary of approximately $76,258 per year over the past five
years, the formula for computing regular pensions, and Mr. Burch's selection of the 75% Joint &
Survivor Annuity, this pension will approximate $51,243 annually.
These pensions were approved by the Pension Advisory Committee on September 9, 2004.
Section 2.393 (p) provides for normal retirement eligibility when a participant has reached age
55 and completed twenty years of credited service, has completed thirty years of credited
service, or has reached age 65 and completed ten years of credited service.
Oriqinatinq: Human Resources
Review Approval
Joseoh Roseto
09-10-2004
13:35:56
Cvndie Goudeau
10-06-2004
15:24:40
Regular Pensions
Page 2
October 18, 2004
Section 2.393 also (p) provides for normal retirement eligibility when a participant has completed twenty years of
credited service in a type of employment described as "hazardous duty" and further defines service as a Police
Sergeant and Police Lieutenant as meeting the hazardous duty criteria. Ms. Reehling qualifies under the age 65
and 10 years of service criteria. Mr. Miller and Mr. Burch qualify under the hazardous duty criteria.
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Pension Trustee Cover Memorandum
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Trackinq Number: 874
Actual Date: 10/18/2004
Subiect / Recommendation:
Approve a contract with Kalson & Associates for Asset Allocation Study for a cost of $12,000 and
for appropriate officials to execute same.
Summary:
The Pension Investment Committee recommends that an asset allocation study be performed on
the pension plan.
The purpose of an Asset Allocation Study is to determine the proper asset mix that will generate
the maximum return with an acceptable level of risk and to determine what rate of return can
be expected over time based upon the asset mix.
Currently the Plan's assets allocation is 52% Domestic Equity 9% International Equity (for a
total equity of 61 %) and 39% Domestic Fixed Income. The actuary assumed rate of return is
7.5%.
Staff obtained price quotes from the following three firms:
Kalson & Associates
Palmer & Cay
Callan Associates
$12,000
$12,500
$20,000
These firms were the three finalists in the Performance Measurement RFP that will be brought
forward in the near future.
Staff has met with representatives from Kalson & Associates and has reviewed their approach to
the study. Staff has also check Kalson's references.
The attached contract has been approved by Klausner & Kaufman.
Oriqinatinq: Finance
Review Approval
Maraie Simmons 09-23-2004 17:35:07
Cvndie Goudeau 10-12-2004 10:21:01
Bill Horne 10-11-2004 18:29:32
Tina Wilson 09-27-2004 13:32: 13
Garrv Brumback 10-07-2004 12:48:32
AGREEMENT FOR INVESTMENT EVALUATION CONSULTANT SERVICES
THIS AGREEMENT made and entered into this
day of
2004, by and between the CITY OF CLEARWATER
GENERAL EMPLOYEES' PENSION FUND (hereinafter referred to as "the
Fund" or "Pension Fund") and GRANT D. KALSON & ASSOCIATES, a
corporation-for-profit
"Consultant") .
(hereinafter
referred
to
as
WIT N E SSE T H:
WHEREAS, the Fund is desirous of hiring the Consultant for
the purpose of providing certain investment evaluation serVlces
to the Board (particularly an asset allocation study at this
time) ;
WHEREAS, Consultant lS desirous of providing those serVlces
for the Fund; and
WHEREAS,
the
Fund
has
engaged
certain
discretionary
investment managers,
sometimes
referred
to
as
"Investment
Advisors" to invest portions of the Fund;
NOW, THEREFORE, In consideration of the promlses and mutual
covenants contained In this Agreement, the parties agree as
follows:
1.
The
Consultant
shall perform an
In depth asset
allocation study for the City of Clearwater General Employees'
1
Pension Fund. The study shall reVlew and discuss the current
asset allocation of the Fund and shall contain a recommendation
as to whether any changes to the current allocation should be
made by the Fund.
The study shall also contain a review and
analysis
of
the
investment performance
of
all
investment
advisors engaged to manage any portion of the Pension Fund.
The study shall also contain the following:
i)
a.
A
revlew
and
analysis
of
rates of return and other pertinent data for
a period not to exceed five (5) prior years,
depending
upon
the
availability
appropriate
data,
with
respect
of
to
the
the
Pension Fund, including stocks, bonds and
all other types of investments in a summary
review of the investment performance of the
Pension Fund portfolio.
b.
An
overvlew
of
the
current
investment
environment,
with
comments
on
the
present
investment strategy and recent performance;
c. that the performance of any manager's portfolio
lS In compliance with the investment guidelines
as adopted by the Fund and provided to Consultant
and the investment advisors.
2
d.
Any other consulting serVlces,
as
reasonably
agreed upon by the Consultant, which shall be
directed in writing by the Fund.
3. Information needed to conduct the asset allocation
study will be provided to Consultant.
Consultant will rely on
those records as the official records of the Pension Fund.
Should additional information be needed by the Consultant, the
Fund shall execute such releases as are necessary to secure such
information.
The Consultant lS entitled to reasonably rely on
information provided by the Fund, its agents or investment
advisors and the Consultant will, to the best of its ability,
notify the Fund of any material discrepancy that it may find
between the official records and the reports and records of the
investment advisors.
3. The Fund shall pay the Consultant In accordance with
Schedule A, attached to this Agreement.
The fee shall be paid
In one lump sum upon delivery of the completed study.
4. The Consultant certifies that it lS professionally
qualified as an independent consultant to perform this asset
allocation study and to evaluate the performance of professional
money managers investing the assets of the Pension Fund.
3
5. This Agreement shall be governed by the laws of the
state of Florida.
Venue for resolution of any dispute under the
terms of this Agreement shall be in Pinellas County, Florida.
6. The parties further agree:
a. In the event of any legal action arlslng out of
the
enforcement
or
interpretation of
this Agreement,
the
prevailing party shall be entitled to recover its costs and
attorneys' fees.
b. The Fund represents that a person authorized to
transact business for the Pension Fund has determined that the
serVlces hereunder, to the extent that they are paid for by the
Pension Fund, lnure solely to the benefit of the Pension Fund
and that, under the governlng instruments of the Pension Fund
and/ or the Board, and the laws to which the Board and/or the
Pension Fund lS
subject,
the
servlces
are a proper and
permissible expense.
c. The parties hereby represent and warrant that
they have full power, authority and capacity to execute and
deliver
this
Agreement
and
to
perform
their
respective
obligations under this Agreement, and that this Agreement has
been duly executed and delivered by the parties and constitutes
a legal, valid, and binding obligation of the parties, and is
enforceable against the parties In accordance with its terms,
4
except as enforcement may be limited by bankruptcy, insolvency,
moratorium or other laws affecting the enforcement of creditors'
rights.
d.
The
Consultant
represents
that
it
lS
an
investment advisor registered with the Securities and Exchange
Commission under the Investment Advisors Act of 1940.
e. The parties to the contract recognlze that the
Board lS not governed by ERISA.
In all of its relations with
the Board, the Consultant will utilize the skill, care, prudence
and diligence which a prudent person acting in a like capacity
and familiar with such matters would use In the conduct of an
activity of a like character and purpose.
The Consultant
recognlzes that its primary obligation under this Agreement lS
to the Board and members of the Pension Fund, and that it will
place the interest of the Board and the members above all others
and will not enter into any agreement or take any action
contrary to that obligation.
The Consultant will be governed in
all of its activities by Chapter 112,
Part VII,
Florida
Statutes,
including,
but
not
limited
to,
the
standards
applicable to providers of serVlces to retirement plans In
Section 112.656,
Florida Statutes.
While no guarantee of
investment results is made, the Consultant shall make the Fund
whole for any loss occasioned by its negligence or breach of the
5
agreement; provided, that In any case where any part of an
investment loss lS occasioned by, or is alleged to be occasioned
by, a breach of duty of any nature by an investment manager or
advisor, the Board will not make any claim or take any action In
any court against Consultant without also making a claim against
the investment manager or advisor in that same court, unless the
Board is limited by contract or law from making a claim against
such investment manager or advisor In such court.
Consultant
shall also be responsible for reasonably monitoring compliance
by managers with the investment policy statement on a quarterly
basis and shall report to the Fund any violations of the
investment policy or lack of due diligence by the managers
revealed by Consultant's
monitoring
activities.
However,
Consultant is not responsible for buy, sell or hold decisions of
the investment managers and shall have no duty to affirmatively
inquire into the adequacy of investment advisor's due diligence
or prudence in making its buy, sell or hold decisions, such duty
belonging solely to
the
investment
advisors.
The Board
acknowledges that Consultant's expertise lS In revlewlng and
commenting on the investment results achieved by investment
managers and advisors and not In rendering legal advice.
Consultant
shall
utilize
its
expertise
In
making
its
recommendations to the Board, but shall have no authority or
6
duty to direct, hire or fire investment advisors.
Consultant
shall not be liable for good faith reliance on any written or
oral representation of the investment advisors In making its
reports and recommendations to the Board.
Consul tant does not
waive any rights it may have for indemnity or contribution from
investment advisors In the event of any claim against, or
liability of, Consultant.
The Board will not release, or
attempt to release, any investment advisor or mutual fund from
any claim or liability arlslng from investment activities
subject to monitoring by Consultant without also releasing
Consultant,
and a
release of
an
investment
advisor
from
liability
arlslng
from
losses
attributable
to
investment
decisions of the advisor shall constitute by that fact alone a
release of Consultant.
f. The Consultant agrees to disclose, In writing, to the
Board, within seven business days if the Consultant becomes the
subject of an investigation by the Securities and Exchange
Commission for alleged breach of federal securities laws; an
investigation by the U. S. Department of Justice for allegations
relating to violation of federal securities laws or related
allegations of fraud; or if the Consultant lS named as the
defendant In any civil action alleging fraud, negligence or
7
breach of fiduciary responsibility In connection with its
consulting duties.
g. The Consultant and its employees will not render
any legal, accounting or actuarial advice, and will not prepare
any legal, accounting or actuarial documents.
The Consultant
encourages the Board to obtain such serVlces from competent
professionals.
h. The Consultant will treat confidentially, by not
disclosing to unaffiliated persons, information furnished by the
Board to the Consultant hereunder without the Board's consent
except:
(I) incident to a subcontract or serVlce contract
entered into by the Consultant to assist in performing serVlces
hereunder,
(ii)
In connection with an audit or regulatory
examination, or
7. This
(iii) as may otherwise be legally required.
Agreement shall commence on the day and
year
first above written.
The Fund may terminate this Agreement upon
thirty (30) days' written notice, with or without cause. The
Consul tant may terminate this Agreement upon ninety (90) days'
written notice, with or without cause.
8. No assignment of this Agreement shall be made by the
Consultant without the prior written consent of the Board.
8
9. Professional Liability insurance shall be maintained by
the Consultant during the life of this Agreement, with the
following limit of liability:
Professional Liability
$1,000,000.
The Consultant shall provide the Fund with proof of lnsurance
within 7 business days of execution of this Agreement and
annually thereafter during the first week of January each year.
IN WITNESS WHEREOF, the parties here have duly executed
this Agreement on the day and year above written.
Approved as to Form
BOARD OF TRUSTEES OF THE CITY OF
CLEARWATER EMPLOYEES' PENSION FUND
By:
By:
S TUAR T A. KAUFMAN
Brian J. Aungst
Chairman
ATTEST:
GRANT D. KALSON & ASSOCIATES
By:
By:
Signature
GRANT KALSON
9
SCHEDULE A
The Fund shall compensate the Consultant for a hard dollar fee
of $12,000
allocation
attendance
results of
(Payment Amount)
study. Included
at an Investment
the study.
to cover the cost of the asset
wi thin this fee is the cost of
Commi ttee meeting to present the
The cost of other projects shall be negotiated with the Fund.
10
OMS APPROVAL
OMS Number 3235-0049
Expires February 28, 2001
Uniform Application for Investment Adviser Registration Estimated average burden
hours per response. . . .9.01
FORM ADV
Part II - Page 1
Name ofhwestment Adviser:
Address:
Grant D. Kalson & Associates
(Number and Street) (City)
125 Pheasant Run Suite 120 Newtown
(State)
PA
(Zip Code)
18940
I Area Code:
( 215 )
Telephone Number:
968-6851
This part of Form ADV gives information about the investment adviser and its business for the use of clients.
The information has not been approved or verified by any government authority.
Item Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Table of Contents
Item
Advisory Services and Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Types of Clients. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Types ofInvestments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Methods of Analysis, Sources ofInformation and Investment Strategies. . . . . . . .
Education and Business Standards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Education and Business Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Business Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other Financial Industry Activities or Affiliations. . . . . . . . . . . . . . . . . . . . . . . .
Participation or Interest in Client Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . .
Conditions for Managing Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Review of Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment or Brokerage Discretion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance Sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Continuation Sheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance Sheet, ifrequired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pa!!e
2
2
3
3
4
4
4
4
5
5
5
6
6
6
Schedule F
Schedule G
(Schedules A, B, C, D, and E are included with Part I of this Form, for the use of regulatory bodies, and are not distributed to clients.) I
Potential persons who are to respond to the collection of information contained in this form
are not required to respond unless the form displays a currently valid OMB control number.
SEe 1707 (8/98)
FormWareSoftware@by Securities Consultants International, L.L.c. (561) 994-4444
For each type of service provided, state the approximate % of
total advisory billings from that service.
Applicant: (See instruction below.)
(1) Provides investment supervisory services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) Manages investment advisory accounts not involving investment supervisory services. . . . . . . . . . . . . . . . . . . .
(3) Furnishes investment advice through consultations not included in either services described above. . . . . . . . . .
(4) Issues periodicals about sccurities by subscription. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) Issues special reports about securitics not included in any service described above. . . . . . . . . . . . . . . . . . . . . .
(6) Issues, not as part of any services described above, any charts, graphs, formulas, or other devices which clients may
use to evaluatc securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7) On more that an occasional basis, furnishes advice to clients on matters not involving securities. . . . . . . . . . . .
FORM ADV
Part II - Page 2
Applicant:
SEC File Number:
Date:
Grant D. Kalson & Associates
801-55295
3/28/04
Definitions for Part II
Related person -- Any officer, director or partner of applicant or any person directly or indirectly controlling, controlled by, or
under common control with the applicant, including any non-clerical, non-ministerial employee.
Investment Supervisory Services - Giving continuous investment advice to a client (or making investments for the client) based
on the individual needs of the client. Individual needs include, for example, the nature of other client assets and the client's per-
sonal and family obligations.
1.
Advisory Services and Fees. (check the applicable boxes)
A.
D
D
D
D
D
D
D
D
D
(8) Provides a timing service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) Furnishes advice about securities in any manner not described above. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Percentages should be based on applicant's last fiscal year. If applicant has not completed its first fiscal year, provide
estimates of advisory billings for that year and state that the percentages arc estimates.)
B.
Does the applicant call any of the services it checked abovc financial planning or some similar term? . . . . . . . . . . . . .
C. Applicant offers invcstment advisory services for: (check all that apply):
o
~
~
D
D
D
(4) Subscription fees
(5) Commissions
(6) Other
(l ) A percentage of assets under management
(2) Hourly charges
(3) Fixed fees (not including subscription fees)
D. For each checked box in A above, describe on Schedule F:
. the services provided, including the name of any publication or report issued by the adviser on a
subscription basis or for a fee
. applicant's basic fee schedule, how fees are charged and whether its fees are negotiable
. when compensation is payable, and if compensation is payable before service is provided, how a client
may get a refund or may terminate an investment advisory contract before its expiration date
2. Types of Clients -- Applicant generally provides investment advicc to: (check those that apply)
D A. Individuals ~ E. Trusts, estates, or charitable organizations
D B. Banks or thrift institutions D F. Corporations or business entities other than those
listed above
D c. Investment companies
~ G. Other (describe on Schedule F)
D D. Pension and profit sharing plans
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
100%
~
%
~
~
~
~
~
~
Yes No
~ D
FormWareSoftware@by Securities Consultants International, L.L.c. (561) 994-4444
FORM ADV
Part II - Page 3
Applicant:
SEC File Number:
Date:
Grant D. Kalson & Associates
801- 55295
3/28/04
3. Types of Investments. Applicant offers advice on the following: (check those that apply)
A. Equity Securities D H. United States government securities
D (1) exchange-listed securities
D (2) securities traded over-the-counter L Options contracts on:
D (3) foreign issues D (I) securities
D (2) commodities
D B. Warrants
J. Futures contracts on:
D c. Corporate debt securities D (I) tangibles
(other than commcrcial paper) D (2) intangibles
D D. Commercial paper K. Interests in partnerships investing in:
D (I) real estate
D E. Certificates of deposit D (2) oil and gas interests
D (3) other (explain on Schedule F)
D F. Municipal securities
~ L. Other (explain on Schedule F)
G. Investment company securities
D (I) variable life insurance
D (2) variable annuities
0 (3) mutual fund shares
4. Methods of Analysis, Sources of Information, and Investment Strategies.
A. Applicant's security analysis methods include: (check those that apply)
(1) D Charting (4) D Cyclical
(2) D Fundamental (5) ~ Other (explain on Schedule F)
(3) D Technical
B. The main sources of infonnation applicant uses include: (check those that apply)
(1) D Financial newspapers and magazincs (5) 0 Timing services
(2) D Inspections of corporate activities (6) 0 Annual reports, prospectuses, filings with the
Securities and Exchange Commission
(3) D Research materials prepared by others (7) D Company press releases
(4) D Corporate rating services (8) ~ Other (explain on Schedule F)
C. The investment strategies used to implement any investment advice given to clicnts include: (check those that apply)
(1) D Long term purchases (5) D Margin transactions
(securities held at least a year)
(2) 0 Short term purchascs (6) D Option writing, including covcred options,
(securities sold within a year) uncovercd options or spreading strategies
(3) D Trading (securities sold within 30 days)
(7) ~ Other (explain on Schedule F)
(4) 0 Short sales
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
FormWareSoftware@by Securities Consultants International, L.L.c. (561) 994-4444
SEC File Number:
Date:
Applicant:
FORM ADV
Part II - Page 4
3/28/04
801-55295
Grant D. Kalson & Associates
5. Education and Business Standards.
Are there any general standards of education or business experience that applicant requires of those involved in
determining or giving invcstment advice to clients? ..................................................
(Ifves, describe these standards on Schedule F.)
Yes No
~ D
6. Education and Business Background.
For:
each member of the investmcnt committec or group that determines general investment advice to bc given to clients, or
if the applicant has no investment committce or group, each individual who dctermines general investment advice givcn
to clients (if more than five, respond only for their supervisors)
each principal executive officer of applicant or each person with similar status or performing similar functions.
On Schedule F, give the:
.
.
.
.
formal education after high school
business background for the oreccdinf! five years
.
name
.
.
year of birth
7. Other Business Activities. (check those that apply)
D
Applicant is actively engaged in a business other than giving investment advice.
A.
D
Applicant sells products or services other than investmcnt advice to clicnts.
B.
D C. The principal business of applicant or its principal executivc officers involves something other than
providing investment advice.
(For each checked box describe the other activities, inc1udinl'! the time soent on them, on Schedule F.)
8. Other Financial Industry Activities or Affiliations. (check those that apply)
D
Applicant is registered (or has an application pending) as a securities brokcr-dealer.
A.
D
Applicant is registered (or has an application pending) as a futures commission merchant, commodity
pool operator or commodity trading adviser.
B.
Applicant has arrangements that are material to its advisory business or its clients with a related person
who is a:
C.
(1) broker-dealer D
(2) investment company D
(3) other investment adviscr D
(4) financial planning firm D
(5) commodity pool operator, commodity trading D
adviser or futures commission merchant
D
(6) banking or thrift institution
D
(7) accounting firm
D
(8) law firm
D
(9) insurance company or agency
D
(10) pension consultant
D
(11) real estatc broker or dealer
(12) cntity that creates or packages limited partnerships
D
(For each checked box in C, on Schedule F identify the related person and describe the relationship and the arrangements.)
Is applicant or a related person a general partner in any partnership in which clients arc solicited to
invest? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(If yes, describe on Schedule F the partnerships and what they invest in.)
Yes No
D ~
D.
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page I).
FormWarcSoftware@ by Securities Consultants International, L.L.c. (561) 994-4444
FORM ADV
Part II - Pa e 5
Applicant:
SEC File Number:
Date:
Grant D. Kalson & Associates
801- 55295
3/28/04
9. Participation or Interest in Client Transactions.
Applicant or a related person: (check those that apply)
0 A. As principal, buys securities for itself from or sells securities it owns to any client.
0 B. As broker or agent effects securities transactions for compensation for any client.
0 C. As broker or agent for any person other than a client effects transactions in which client securities are sold to
or bought from a brokerage customer.
0 D. Recommends to clients that they buy or sell securities or investment products in which the applicant or a related
person has some financial interest.
0 E. Buys or sells for itself securities that it also recommends to clients.
(For each box checked, describe on Schedule F when the applicant or a related person engages in these transactions and what
restrictions. internal procedures. or disclosures are used for conflicts of interest in those transactions.)
10. Conditions for Managing Accounts. Does the applicant provide investment supervisory services, manage investment advisory
accounts or hold itself out as providing financial planning or some similarly termed services and impose a minimum dollar value of Yes No
assets or other conditions for starting or maintaining an account? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 ~
(If yes, describe on Schedule F.)
11. Review of Accounts. If applicant provides investment supervisory services, manages investment advisory accounts, or holds
itself out as providing financial planning or some similarly termed services:
A. Describe below the reviews and reviewers of the accounts. For reviews, include their frequency, different levels, and
triggering factors. For reviewers, include the number of reviewers, their titles and functions, instructions they receive
from applicant on performing reviews, and number of accounts assigned each.
See Schedule F
B. Describe the nature and frequency of regular reports to clients on their accounts.
See Schedule F
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page I).
FormWareSoftware@by Securities Consultants International, L.L.C. (561) 994-4444
FORM ADV
Part II - Pa e 6
Applicant:
SEC File Number:
Date:
Grant D. Kalson & Associates
801-55295
3/28/04
12. Investment or Brokerage Discretion.
A. Does applicant or any related person have authority to determine, without obtaining specific client conscnt, the:
Yes No
(1) securities to be bought or sold? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 t8I
Yes No
(2) Amount of the securitics to be bought or sold? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 t8I
Yes No
(3) broker or dealer to bc used? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 t8I
Yes No
(4) commission rates paid? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 t8I
Yes No
B. Does applicant or a related person suggest brokcrs to clients? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t8I 0
For each yes answer to A describe on Schedule F any limitations on the authority. For each yes to A(3), A(4), or B,
describe on Schedule F the factors considered in selecting brokers and dctcrmining the reasonableness of thcir commis-
sions. If the value of products, research and services given to the applicant or a related person is a factor, dcscribe:
. the product, research and services
. whether clients may pay commissions highcr than those obtainablc from other brokers in return for those products
and serviccs
. whether research is used to service all of applicant's accounts or just those accounts paying for it; and
. any procedures the applicant used during the last fiscal year to direct client transactions to a particular broker in
rcturn for products and research services received.
13. Additional Compensation.
Does the applicant or a related person havc any arrangemcnts, oral or in writing, where it:
A. is paid cash by or receives some economic benefit (including commissions, equipment or non-research services) from a Yes No
non-client in connection with giving advice to clients? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 t8I
Yes No
B. directly or indirectly compensates any person for client referrals? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D t8I
(For each yes, describe the arrangements on Schedule F.)
14. Balance Sheet. Applicant must provide a balance shcet for thc most recent fiscal year on Schedule G if applicant:
. has custody of client funds or securities; or
. requires prepayment of more than $500 in fees per client and 6 or more months in advance
Yes No
Has applicant provided a Schcdule G balance shect? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 t8I
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
FormWareSoftware@by Securities Consultants International, L.L.c. (561) 994-4444
'Schedule F of Applicant: SEC File Number:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates. Inc. 801-55295
Date:
3/28/04
I
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
Full name of applicant exactly as stated in item IA of Part I of Form ADV: I IRS Empl. Ident. No.:
Grant D. Kalson & Associates. Inc 23-2738756
Item of Form
(identify) Answer
ADV Part II
Page 2
ID
Services Provided
Asset Allocation Modeling; Drafting Investment Policy; Monitoring fund
manager performance; Writing Investment Guidelines for Pension and
401(k) fund managers; Evaluating custodian and related administrative
vendors to pension and 401(k) plans; Assisting in manager searches for
all asset categories including domestic asset classes, international and
global equity; investment training seminars and special projects.
Hourlv Charges
Clients pay at a pre-arranged hourly rate for all time expended on special
projects at the conclusion of the project.
Fixed Fees
Quarterly fixed retainers are paid by clients for consulting servIces
pursuant to written contract subject to termination upon 30 days notice.
Fees are negotiable depending on the scope and complexity of assignments
and whether the relationship is on a retainer basis.
Hourly fees are quoted and pre-agreed for all special projects in advance.
Fees are negotiable and based upon the level of experience necessary for
the project, the number and level of participation of staff members and the
time necessary to complete the project.
Negotiable retainer fees are quoted on a yearly basis. Quarterly payments
are made at the conclusion of each quarter. Retainer fees cover client-
tailored quarterly reports and consulting services.
Fees are based upon an evaluation of the following:
I) Frequency and level of content of reports as required by client
2) The number of fund managers involved in the Plan
3) Type of Plan
4) Number of trips and presentations to be made at client's site
5) Anticipated ancillary needs of client
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
-Schedule F of Applicant: SEC File Number: Date:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates, Inc. 801-55295 3/28/04
(Do not use this Schedulc as a continuation sheet for Form ADV Part I or any other schedules.)
Full name of applicant exactly as stated in item I A of Part I of Form ADV:
Grant D. Kalson & Associates, Inc
Item of Form
(identifY)
I IRS Empl. Ident. No.:
23-2738756
I.
ADV Part II
Page 3
2G and 3L
ADV Part II
Page 3
4A
Answer
Entire portfolios; pensIon plans; 401(k) plans; IRAs; endowments;
foundations; debt service reserve funds; municipal operating portfolios
Asset Allocation Modeling
An outline of the typical asset allocation steps with a client:
o Discuss the pros and cons of different asset mixes
o Make first five-year projection of contributions flowing to the Plan
o Estimate first five-year projection of payments from the Plan
o Decide which asset classes to include
o Reach consensus on key forecasts
o Run asset allocation model
o Review the initial findings and recommendations with the client
o Make any changes to the forecasts and rerun the model
o Choose the allocation ranges
Manager Search Process
Front End:
. Client's clearly defined objectives
. Client's suggested candidates
Candidate Sources:
. Plan Sponsor Network
. Morningstar
. Kalson & Associates' manager files
. Ongoing manager interviews and networking
. Subscriptions including pension research periodicals
Biases Toward:
. Smaller firms
. Portfolio staff with a dedication to the investment business
. Forthright admission of mistakes
Mechanical Screens:
. First Screen - every possible candidate
. Second Screen (cont'd on next page)
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
'Schedule F of Applicant: SEC File Number:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates, Inc. 801-55295
Date:
3/28/04
1.
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
Full name of applicant exactly as stated in item IA of Part I of Form ADV: 1 IRS EmpI. Ident. No.:
Grant D. Kalson & Associates, Inc 23-2738756
Item of Form
(identify) Answer
ADV Part II
Page 3
4A
. Second Screen (cant/d)
).> performance hurdle
).> risk
).> other criteria
).> multiple periods
. Third Screen
).> performance attribution for selected candidates
Qualitative Work:
- Phone discussions
- Interviews with Kalson & Associates
- Interviews at candidates' offices
- Kalson & Associates internal staff discussions
Semi-Finalists:- Written and oral report
Finalists:
- Level playing field agenda
- Participation by Kalson & Associates during
manager presentations
- Assistance with implementation of fund placement
Performance Measurement Process
Kalson & Associates uses the Plan Sponsor Network (PSN) universe for
performance monitoring, tracking, and evaluation. To comply with AIMR
standards and to ensure a complete representation of past performance, most
managers are represented in the universe by a composite of managed funds.
Our performance measurement system, in conjunction with the Plan Sponsor
Network, allows us to create custom universes for manager peer comparison. wit
over 2,000 institutional managers, almost 7,000 investment products, and over
13,000 funds. In addition, Kalson & Associates has the ability to customize the
universe based on 19 investment styles, e.g. growth, value, index, contrarian, and
eight decision-making processes (e.g. bottom-up, top-down, theme). We can
further qualify the universe as small, mid, or large-cap, or designate a specific
market capitalization range. This flexibility allows us to compare a manager's
performance to a very precise universe of similarly managed funds.
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
'Schedule F of Applicant: SEC File Number: Date:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates, Inc. 801-55295 3/28/04
(Do not use this Schedule as a continuation sheet for Form ADV Part lor any other schedules.)
1
Full name of applicant exactly as stated in item IA of Part I of Form ADV:
Grant D. Kalson & Associates. Inc
Item of Form
(identiJYl
I IRS Empl. Ident. No.:
23-2738756
Answer
ADV Part II
Page 3
4A
A few common universes provided to our clients are:
. Small-cap value
. Large-cap growth
. Intermediate duration bonds
. Balanced funds with a 40% - 75% equity range and a 25% -60% fixed incom
range
In addition to performance, Kalson & Associates provides a user-friendly array 0
supporting data. We also adjust for the risk taken and show the exact ways in
which the manager added or lost value vs. the appropriate benchmark.
Our database contains a time series of index returns for over 40 different indices.
We selectively use the indices in client reporting and as part of our active
manager research.
Page 3
4B
Research Capabilities
The firm's two consultants, assisted by another member of our staff, perform the
research. In addition to our external sources we meet with over 250
investment advisors each year. Of most importance is our frequent contact with
those advisors who currently manage money for our clients. Secondly, we meet
with potential candidates in conjunction with our manager search assignments.
Thirdly, we meet with several managers, on average, weekly. While many of
these managers are already known to us, others have not been interviewed
previously; among the latter group are some who are new to the institutional
marketplace. Our proximity to New York puts us within reach of 60% of the U. ~ .
investment management community. Managers from other areas of the country
frequently call on us while visiting other clients in the northeast. Periodically, we
also make visits to managers in other cities.
Our research process is both quantitative and qualitative. While performance is
the bottom line, future rather than past performance is our primary concern. We
focus our attention on issues that impact the continuation of past success.
Our primary source of external research is Plan Sponsor Network (PSN). PSN is
one of the leading providers of manager universe data.
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
'Schedule F of Applicant: SEC File Number:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates, Inc. 801-55295
Date:
3/28/04
I.
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
Full name of applicant exactly as stated in item lA of Part I of Form ADV: 1 IRS Empl. Ident. No.:
Grant D. Kalson & Associates, Inc 23-2738756
Item of Form
(identify) Answer
ADV Part II
Page 3
4B
Our extensive manager databases serve as an excellent starting point for our
research effort. Other external research sources include: (1) voluminous material
sent directly by the managers; (2) the pension press (daily-to-quarterly);
(3) Association for Investment Management and Research (AIMR); (4) other
publications including those on the Internet; (5) attendance at educational
semmars.
Because Wall Street research should only represent part of a money manager's
research, Kalson & Associates conducts its own extensive fieldwork to verify and
amplify outside research. Our consultants are continually meeting with all types
of managers not only via phone calls, including conference calls, but also via
on site visits. We feel strongly that such meetings are productive only if the Kalson
& Associates staff prepares probing questions and comments in advance.
Typically our meetings run 1 Yz hours to 2 hours in order to cover fully the
manager's philosophy, style, and current strategies.
By integrating both external and internal research, we are convinced that we
provide the best practical due diligence on behalf of our clients. As a result, we
have confidence in our recommendations. In this way, we avoid firms that look
good on the surface, but have major underlying problems.
We utilize several sources that cover the global marketplace:
. Dialogue with international and global managers
. Reading and evaluating international investment strategies of these managers
. Reading international and economic political journals
. Attendance at international investment conferences
. Monitoring international country performance, currency strengths, and
economic statistics
. Following emerging international trends and hot spots reported in the daily
press and news media
. Paying attention to scientific discoveries that may have jump-start
applicability to foreign markets
. Evaluating the growing global view of domestic U.S. managers
Kalson & Associates maintains state-of-the-art software for database access, r
report production and other support services. The entire quarterly performance
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
.Schedule F of Applicant: SEC File Number:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates, Inc. 801-55295
Date:
3/28/04
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
I. Full name of applicant exactly as stated in item IA of Part I of Form ADV: 1 IRS Empl. Ident. No.:
Grant D. Kalson & Associates, Inc 23-2738756
Item of Form
(identifY) Answer
Page 3
4B reporting process is done in-house. We utilize the Effron Performance
Measurement software for calculating performance and risk-adjusted
performance. Our reports also include spreadsheet, word processing, and
graphics. We enhance the Effron system to display information in a format
that meets each client's needs.
We also rely on our systems for asset allocation modeling; our asset allocation
software vendor is Northfield Information Services (NIS). Northfield's investmen
consulting professionals serve as Kalson & Associates' adjunct staff, assisting our
consultants on asset allocation and performance attribution issues.
For 401(k) analysis we rely heavily on input from several software programs and
daily information provided by Morningstar. We also gather information from
knowledgeable professionals who are familiar with each fund.
Page 3
4C Asset Allocation Process
Kalson & Associates' work on portfolio structure is intentionally long term in
nature; we do not believe in a short-term market timing approach to investment
management. Our view encompasses asset classes, styles within each asset class,
and the range of market capitalizations. If we have a bias, it is toward higher
equity allocation and exposure to alternative asset classes, when appropriate.
We also maintain other biases in favor of younger, emerging money managemen
firms vs. highly successful multi-product, multi-tiered investment firms.
The client's financial condition always poses a quandary for its Pension Board. On
the one hand, a poorly capitalized corporate client or a cash-strapped municipalit,
or endowment may be forced to invest conservatively. This acts as a hedge if
market values tumble and the client is unable to offset losses with new money.
On the other hand, we firmly believe that high equity exposure is consistent with
the long-term nature of the pension fund.
In summary, we recommend balance, a willingness to push out appropriately on
the risk/return frontier, and the use of performance benchmarks with the longest
practical time frames for results (as long as adequate short-term evaluations are
in place).
Our process for reviewing investment policy, strategy, and asset mix is never-
ending. The foundation of our approach is to question always what is currently
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
-Schedule F of Applicant: SEC File Number: Date:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates, Inc. 801-55295 3/28/04
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules)
I
Full name of applicant exactly as stated in item lA of Part IofFonn ADV:
Grant D. Kalson & Associates, Inc
ItemofFonn
(identify)
I IRS Empl. Ident. No.:
23-2738756
Answer
in place. Of course, evolving markets and trends, strategies employed by similar
clients, and legitimate biases of Board members are relevant to the review.
ADV Part II
Page 3
4C
If an asset allocation target is firmly in place and subsequently confirmed as
"right" for the plan, then it is important to rebalance the fund if one or more asset
classes move out of the target range. Simply going along with market action
without any rebalancing defeats the whole review process.
Finally, the majority of the Board's time is typically spent on individual manager
performance. Instead, we believe the issue of greatest importance is asset
allocation and we guide clients accordingly.
Investment Analvsis Process
Benchmarks are chosen to coincide with a manager's specific style and
assignment. The selected benchmark is agreed upon by client and
manager at inception and becomes an integral part of written investment
objectives. Thus, an advisor hired to manage large-cap growth equities
would likely be measured against the Russell 1000 Growth Index. A
manager hired to manage an intermediate duration bond portfolio would
likely be measured against the Lehman Brothers Intermediate Aggregate
Index. A balanced manager would be measured against a hybrid index,
that, as an example, might be 55% S&P 500 and 45% Lehman Brothers
Government/Corporate. An important part of the process is agreement
among client, consultant and manager to clearly identify the appropriate
benchmark and relative expectations.
Kalson & Associates meets independently with the client's current
managers at least once/year; this is in addition to three-way (client-
consultant-manager) meetings. Circumstances such as poor performance,
personnel or ownership changes may dictate more frequent visits.
Telephone contact is made at least once/quarter and often more frequently.
In addition to performance issues, we look closely at the client portfolio to
assess style integrity and compliance with policy guidelines.
Our frequent contact with the investment community often alerts us to
events within a firm that require further investigation. This ongoing effort
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
-Schedule F of Applicant: SEC File Number:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates, Inc. 801-55295
Date:
3/28/04
I
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
Full name of applicant exactly as stated in item IA of Part I of Form ADV: 1 IRS Empl. Ident. No.:
Grant D. Kalson & Associates, Inc 23-2738756
Item of Form
(identifY) Answer
together with our regular contact with client managers enables us to raise
issues of concern before they impact performance.
ADV Part II
Page 3
4C
Grant Ka1son has monitored international managers for well over a decade.
During that time, he has conducted and continues to conduct international
manager searches for clients.
Kalson & Associates measures country, currency, hedging offsets and
individual stock effects on international portfolios. Using our database of
approx. 640 global and international managers, we are able to make
comparisons to other similar style firms.
Probation/Dismissal of an Investment Manager
Key criteria for probation or dismissal of an investment manager are:
. Failure to achieve long-term investment objectives
. Short-term deterioration of returns
. Violation of policy guidelines with respect to security selection
. Inadequate or ineffective communication with the client
All of the above are major causes for probation or dismissal, depending on
degree. Kalson & Associates will not hesitate to make appropriate
recommendations to a client if any of these conditions arise. Generally,
consistent improvement for a minimum of three consecutive quarters
would be required before a manager is removed from probation.
ADV Part II
Page 4
#5
Academic requirements for professional employment at Kalson & Associates are:
a Bachelor's degree plus either related financial experience or an MBA or CFA.
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
-Schedule F of Applicant: SEC Pile Number:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates, Inc. 801-55295
Date:
3/28/04
1
(Do not use this Schedule as a continuation sheet for Form ADV Part I or any other schedules.)
Full name of applicant exactly as stated in item lA of Part I ofPormADV: I IRS Empl. Ident. No.:
Grant D. Kalson & Associates, Inc 23-2738756
Item ofPorm
(identify) Answer
ADV Part II
Page 4
#6
Grant D. Kalson - Born 1939
Education
CF A designation (1986)
University of Chicago (1965) MBA - Finance
Carnegie Mellon University (1961) BS Industrial Management
Business Background
Kalson & Associates - President and Sr. Investment Consultant (1993 - date)
Buck Consultants - Sr. Investment Consultant (1986-1993)
Butcher Consulting Group - Manager of Corporate Consulting (1982 - 1986)
Wheeling-Pittsburgh Steel Corp. - Assistant Treasurer (1976 - 1982)
Westinghouse Electric Corp. - Pension Fund Analyst (1969 - 1976)
AD V Part II
Page 4
#6
Joseph F. De Rosa - Born 1975
Education
CFA - Levell
College of the Holy Cross (1997) BA - Economics
Business Background
Kalson & Associates - Jr. Investment Consultant (2000 - present)
Prudential Securities - Financial Advisor (1999 - 2000)
Oxford Health Plans - Collections Rep. (1997 - 1999)
Southern New England Telephone - Internet Specialist (6/96- 8/96)
ADV Part II
Page 5
#11 (A)
Investment Reviews
Frequency
. Quarterly for most retainer clients
. Covers each manager and the total plan assets for pension plans, endowments
and foundations
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
'Schedule F of Applicant: SEC File Number: Date:
Form ADV
Continuation Sheet for Form ADV Part II Grant D. Kalson & Associates, Inc. 801-55295 3/28/04
(Do not use this Schedule as a continuation sheet for Form ADV Part lor any other schedules.)
l Full name of applicant exactly as stated in item IA of Part I of Form ADV: I IRS Empl. Ident. No.:
Grant D. KaIson & Associates, Inc 23-2738756
Item of Form
(identify) Answer
. covers each fund option for 401(k) plans
Triggers
. The trigger is the passage of another calendar quarter; however, our
monitoring is continual; if there is a major event, or if we anticipate one, we
will report that separately to the client
. All reviews can contain our recommendations for action
Different Levels
While the level of detailed evaluation varies, all clients receive enough informatio 11
so that they know how well the managers and total plan performed, why the
results were relatively high or low, and how risky are the overall assets.
ADV Part II
Page 5
#l1(B) Client reports are generated quarterly.
Nature - a quarterly investment monitoring report usually contains:
. Market Commentary (how various indices performed)
. Quarterly and cumulative performance charts and risk-adjusted performance
charts for each manager
. Quarterly and cumulative performance charts and risk-adjusted performance
charts for combined assets
. Comparisons to other similar managers and indices
. Quantitative and/or qualitative attribution (why the performance was above 0
below the appropriate benchmark)
. Written evaluation including recommendations, when appropriate
Answer all items. Complete amended pages in full, circle amended items and file with execution page (page 1).
HRH of Baltimore
410-771-3838 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
COMPANIES AFFORDING COVERAGE
PRODUCER
303 International Circle,#400
Hunt Valley,MD 21030
COMPANY
A
HARTFORD SP/TWIN CITY FIRE
INSURED
Kalson & Associates
Suite 120
1 25 Pheasant Run
Newton P A 18940
COMPANY
B
COMPANY
C
COMPANY
D
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE L1STEO BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO All THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
CO
LTR
TYPE OF INSURANCE
POUCY NUMBER
POUCY EFFECTIVE POLICY EXPIRATION
DATE (MM/DDIYYI DATE IMMlDDIYYI
LIMITS
GENERALlIABIUTY
COMMERCIAL GENERAL LIABILITY
CLAIMS MADE 0 OCCUR
OWNER'S & CONTRACTOR'S PROT
GENERAL AGGREGATE
PRODUCTS. COM PlOP AGG
PERSONAL & ADV INJURY
EACH OCCURRENCE $
FIRE DAMAGE (Anyone fire) $
MEO EXP (Any one person) $
AUTOMOBILE L1ABIUTY
ANY AUTO
ALL OWNED AUTOS
SCHEDULED AUTOS
HIRED AUTOS
NON-OWNED AUTOS
COMBINED SINGLE LIMIT $
BODILY INJURY
(Per person)
BODILY INJURY
(Per accident'
PROPERTY DAMAGE
GARAGE LIABILITY
ANY AUTO
AUTO ONLY - EA ACCIDENT
OTHER THAN AUTO ONLY:
EACH ACCIDENT $
AGGREGATE
EACH OCCURRENCE
AGGREGATE
EXCESS LIABILITY
UMBRELLA FORM
OTHER THAN UMBRB-LA FORM
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
$
THE PROPRIETORI
PARTNERs/EXECUTIVE
OFFICERS ARE:
A OTHER
INVESTMENT MGMT,
CONSULTANTS E&O
INCL
EXCL
B- DISEASE. POLICY LIMIT
EL DISEASE. EA EMPLOYEE
NDC0201648
1/09/04
1/09/05
$1,000,000 LIMIT
$50,000 DEDUCTIBLE
DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLESISPEClALITEMS
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SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
FOR INSURANCE
VERIFICATION
PURPOSES
ONLY
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