FAQS

How does one become a Client?

Becoming a Client involves the following typical steps:

• Client and Ceera discuss the client’s financial position, investment objectives, time horizon, and risk tolerance; our services, investment philosophy, and fees as relevant to the client’s goals.
• Client reviews our disclosures and agreements: Form ADV Part 2, the Investment Advisory Agreement, and the Privacy Policy, and other.
• Client establishes a relationship with Ceera via signing of the Investment Advisory Agreement.
• Ceera opens a separate account (and subsequently helps transfer assets to be managed) on the Client’s behalf with Charles Schwab (CS, or Schwab) as the Custodian, or Client gives Ceera access to an account with the current Custodian.
• Ceera provides Client with online access to Schwab and Morningstar Client Portal, as applicable.
• Ceera begins the portfolio management and investment advisory process.

Does Ceera Investments, LLC maintain custody of Client assets / portfolios?

We do not maintain direct custody of any of our clients’ assets. A client’s assets will be held by an independent Custodian (Broker) selected by the client and recommended* by us, if so desired. The account (s) will, at all times, be held solely in the client’s name and will require their authorization for any withdrawal (s). The client pays all the fees and costs of the Custodian–expenses related to the account such as brokerage and other execution costs, custody fees and margin costs, if any. The client instructs the Custodian to send quarterly/ monthly statements showing the assets in and all transactions for the account during the period corresponding to the statement, and to provide us with copies of those statements and confirmations of any transactions effected in a client’s account.

*We recommend using the institutional brokerage division of Charles Schwab (CS), as the Custodian for our clients’ assets. A majority of our clients use CS as the Custodian of their accounts/ assets/ portfolios.

Who is the primary Custodian (Broker)? Is the Custodian financially strong?

Charles Schwab & Co. Inc. (Schwab) is the Custodian used by a majority of our clients. Schwab has been a leader in bringing Wall Street to millions of investors. While our clients are free to choose their Custodian/ Brokerage firms, we recommend Charles Schwab.

Some of the benefits that Schwab offers include:

• Investment variety–Access to one of the broadest collections of investment vehicles in the industry
• Low to none trading commission costs
• Commitment to seek the best execution for all trades
• Trade confirmations and account statements
• Convenient online access
• Electronic funding and withdrawal options
• Online applications and specialized software that make administrative tasks easier, both for us and our clients
• Dedicated client services and support that frees up more time for us to dedicate to investment activities and client service functions
• Account protection: With Schwab, accounts are protected by the Securities Investor Protection Corporation (SIPC; www.sipc.org). SIPC protects securities in an account up to USD 500,000, of which $250,000 may be applied to cash. At Schwab, customers receive an extra level of coverage by Lloyd’s of London, a well respected name in the insurance industry, as underwriter for additional brokerage insurance. This “excess SIPC” protection of securities and cash is provided up to an aggregate of $600 million, limited to a combined return to any customer from SIPC and Lloyd’s of $150 million, including up to $1,150,000 in cash. This additional protection becomes available in the event that SIPC limits are exhausted and client accounts have not been made whole. This coverage provides you protection against brokerage insolvency and does not protect against loss in market value of securities.

Please note that Ceera does not receive any compensation from Schwab.

How can clients monitor their assets/ portfolios? What kinds of reports are available to clients?

Clients can monitor their portfolios via the following methods:

Custodian Client Reports

Clients have access to their separate accounts/portfolios through the online access that a Custodian typically provides. Our clients will also get regular statements from their broker/dealers, custodians, and mutual funds as appropriate. This online access and the reports will enable Clients to see what’s going on in their portfolios/ accounts.

Morningstar Client Web Portal

In addition, our clients who use Schwab as their Custodian will be provided with online access to a Client Web Portal provided by Morningstar–a third-party provider of our portfolio management and reporting system. This online system allows our clients to securely access several informative and performance reports on their portfolios 24×7. This portal allows us to give our clients secure access to their individual portfolio(s), selected reports, and other communications from us ensuring that our clients have quick and easy access to up to date information on their portfolios.

Periodic Reviews

We also engage with our clients via periodic reviews that discuss the performance of their assets, either via conference calls, e-mails or during face-to-face meetings. Clients are also welcome to request reviews whenever they choose to do so.

Is there a minimum portfolio size?

Ceera’s account size for managed accounts is an expected initial minimum of USD 1,000,000 in funds and /or securities, including assets across multiple portfolios for a given Client. This minimum may be lowered or increased on a case-by-case basis at Ceera’s discretion.

What are all the expenses associated with having a portfolio managed at Ceera Investments, LLC?

Typically, there are two sets of expenses, as follows.

1. Custodian Trade Commissions and Fees (if applicable)
   Any trades (stocks, mutual funds, ETFs) that are placed by Ceera on behalf of a Client in their accounts are typically charged a trade commission by the Custodian. Please see commission schedules of applicable Custodians for further details. Custodians may also charge other fees related to maintaining custody of assets. Schwab, the primary Custodian for most of Ceera’s clients, typically does not charge trade commissions. Ceera does not receive any part of these expenses/ fees as compensation from Custodians.
2. Ceera Investment Advisory Fees
   This is the advisory fee that is charged to the Client per the fee schedule agreed upon between the Client and Ceera.

Are there any restrictions to withdraw or add funds? Or to terminate services?

No.

Is a portfolio’s performance benchmarked?

The performance of each portfolio that we manage is benchmarked, on a long-term basis of at least 3 to 5 years, against appropriate market indices that reflect the objectives of that portfolio and the client. For example, a portfolio with an objective of 100% towards US Capital Appreciation would be benchmarked against the S&P500 index (that is considered a proxy for the equity market as a whole).

Do clients have to be located in the United States of America?

No, as long as the law permits the assets being managed to be in custody in the US. Our current client-located countries include the US, India, China, and Australia.

What are some examples or scenarios where our services can be useful to clients?

Scenario: A family or an individual is looking for a trustworthy partner to outsource their investment management needs—to help plan for their financial future.

Scenario: A client has recently moved overseas or to a new job and needs help “rolling over” and managing their existing 401k or retirement plan in the US.

Scenario: A client is looking to diversify the investment advisors managing their asset base.

Scenario: An international (non-US) client is looking to diversify globally and park / invest assets in US dollars for future needs (such as education in the US for their children or grandchildren)

Scenario: A small business or charity is looking to manage funds at their disposal for their future needs—such as their excess cash flows from operations or their endowments, and so on.

Scenario: An entrepreneur looking to set up a retirement plan wants to set up and have a Solo 401k plan managed.

Scenario: A client wants a second opinion on the performance of other investment advisors they have been using or want their entire asset base and set of investment managers monitored appropriately.