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SummitAdvisorSolutionsFirmBrochure Page1

SummitAdvisorSolutions(“Summit”or“SAS”)

Part2AofFORMADV:FirmBrochureMay5,2016

14785PrestonRoad,Suite1000Dallas,Texas 75254

Telephonenumber:(972)663-4300

Faxnumber:(972)663-4301www.SummitAdvisorSolutions.com

This brochure provides information about the qualifications and business practices of SAS CapitalManagement,LLC.,dbaSummitAdvisorSolutions(“SAS”).Ifyouhaveanyquestionsaboutthecontentofthisbrochure,pleasecontactusatthephonenumberabove.SummitAdvisorSolutionsisregisteredwiththeUnitedStatesSecuritiesandExchangeCommission(“SEC”)asanInvestmentAdviser;however,suchregistrationisnotintendedtoimplyacertainlevelofskillortraining.ThisBrochurehasnotbeenapprovedbytheSECorbyanystatesecuritiesbodyorregulatoryauthority.

Additional information about Summit Advisor Solutions is also available on the SEC’s website atwww.adviserinfo.sec.gov.


ITEM2–SUMMARYOFMATERIALCHANGESSINCESEPT24,2015BROCHUREAsofMay5,2016,SummitAdvisorSolutions(SummitorSAS)hasnamedNicholasRossiasChiefComplianceOfficer.MarkRichisonhasbeennamedSummit’sChiefFinancialOfficer.

Summithasaddedtwonewinvestmentstrategiestoitsoffering.*FullstrategyofferingfromSummitis:

A B C D ESAS–StrategicETF

Portfolios–allstrategies($25,000)

SAS–PreservationStrategynon-ETF($500,000^)

CORECapital–allstrategies($25,000)

SAS–CustomIncomeStrategy*

CougarGlobalInvestments–allstrategies($25,000)

SAS–TacticalETFPortfolios–allstrategies

($25,000)

SAS–OptimalBalancedStrategy

non-ETF($100,000^)

FrontierAssetManagement–allstrategies($25,000)

WEDonoghue&Co–PowerIncomestrategy

($25,000)

LongviewCapitalManagement–GlobalAllocation($25,000)

SAS–PreservationStrategyETF($25,000)

SAS–ModerateGrowthStrategy

non-ETF($100,000^)

SAS–ConcentratedEquityStrategy($50,000)

LatticeStrategies–allstrategies($50,000)

WilbanksSmith&Thomas–USBond($25,000)

SAS–OptimalBalancedStrategyETF($25,000)

SAS–OpportunisticGrowthStrategy

non-ETF($100,000^)

Mastrapasqua–allStrategies($45,000)

FundEvaluationGroup(FEG)–allstrategies($25,000)

SAS–ModerateGrowthStrategyETF($25,000)

SAS–FixedCoreStrategy Navellier–4strategies($50,000)

BelleHavenCashManagement($250,000)

SAS–OpportunisticGrowthStrategyETF

($25,000)

SAS–FixedOpportunisticStrategy

SpringCapital–ADEPTStrategy($25,000)

BelleHavenMuniLadderPlus($250,000)

SAS–ManagedLiquidAlternativePortfolio

($25,000)

WEDonoghue–PowerDividend&Yield($25,000)

BelleHavenTaxableLadderPlus($250,000)

WEDonoghue–PowerGrowth&Income

($25,000)

CongressAsset–LargeCapGrowth($40,000)

HerndonCapital–LargeCapValue($40,000)

SuncoastCapital–AllCapCore($25,000)

F G H I JSAS–AdaptivePortfolios–allstrategies($50,000)

SAS–FusionPortfolios–allstrategies($50,000)

Contravisory–AllCapCore($35,000)

BeaumontCapitalManagement-Premium

($25,000)

GoodHarborFinancial–TacticalEquityIncome

($100,000)

SAS–AlternativeIncomeStrategy*

WilbanksSmith&Thomas–USEquity($25,000)

NewfoundResearch–allstrategies($25,000)

BelleHaven–MuniPLUS($250,000)

AstorAssetManagement–Long/ShortBalanced

($25,000)

CapitalWealthPlanning–CoveredCall($75,000)

WEDonoghue–PowerDividend($50,000)

BelleHaven–TaxablePLUS($250,000)

BeaumontCapitalManagement–SectorRotation

($25,000)

EmeraldAssetManagement–ElessarSmCapValue

($40,000)

WindhamCapital–RiskRegimeI($25,000)

ClarkCapitalManagement–FixedIncome($25,000)

ChiltonCapital-REIT($25,000)

WindhamCapital–RiskRegimeIII($25,000)

CongressAsset–Risk

ManagedAsset($40,000)HahnCapital–MidCap

Value($30,000) OakviewCapital–AllCap

Value($25,000)

CongressAsset–RiskManagedSatellite($40,000)

Ironwood–SmCapCore($45,000)

Polaris–InternationalGrowth($100,000)

HaysAdvisory–allstrategies

($25,000)OFISteelPathMLP–EnergyInfrastructure($25,000)

St.James–AllCapCore($25,000)

CongressAsset–MidCap

Growth($40,000)RiverRoadAsset–FocusedAbsoluteValue($25,000)

WEDonoghue–PowerDividendInternational

($50,000)

GoodHarborFinancial–USTacticalCore($25,000)

* RepresentsthetwonewSummitStrategiesaddedtotheSummitPlatform


Additionally,SummithasaddedCustomPortfolioConsultingServices:SummitprovidesRetailRIAfirmswithCustomPortfolioConsultingServices(“CPCServices”).SummitworkswiththeRetailRIAfirmtoconstructCustomPortfolios(“CustomPortfolios”)whichRetailRIAfirmmaythenapplytoalloraportionofitsclient’sprogramassets.ForallprogramaccountassetsinvestedintheseCustomPortfolios,theRetailRIAshallassessaCPCServicesfeelistedintheadvisoryagreementbetweentheRetailRIAfirmanditsclient.AlloraportionoftheCustomPortfoliosmaybeinvestedinotherthird-partymoneymanagers,inwhichcasethethird-partymoneymanager’sfeewouldapply.

SummithasaddedtheAdvisorSelectProgramtoitsmenuofofferings.TheAdvisorSelect(AS)ProgramisaplatformoptionavailabletoRIAfirmstoutilizewhichmayreducetheplatformfeestotheRIAfirm’sendclient.TheASprogramiscomprisedofmutualfundsandETF’s,inwhichtheunderlyingManagersofthesefunds/ETFshavecontractedwithSummitandhaveagreedtopayafeetoSummittoparticipateintheprogram.ThefeesSummitreceivesfromthefunds/ETFswillbeusedtooffsettheplatformfeenormallyassessedtotheRIA’sclients.RIAshavetheoptiontobuildmodelsorstrategiesthatutilizethesefunds/ETF’s.SummitwillworkwiththeRIAfirmtodevelopallocations,modelsandstrategiesaswellasprovideongoingconsultationasneededandorrequested.SummitwillalsocommunicatewithRIAstomakethemawareofnewinvestmentsthatarepartoftheASplatformuniverseaswellasrecommendedpotentialshiftsintheallocations/holdingsthatmakeuptheRIA’smodelsorstrategies.EachinvestmentoptionintheASprogramwillbelistedalongwiththeirassociatedplatformfeesotheRIAfirmcancalculatethereductioninplatformfeesbasedontheallocation.RIAfirmscaninvestinanyofthefundsassociatedwiththeASprogramalongwithotherfundsandETF’stocompletetheirmodelallocations.However,onlytheinvestmentsassociatedwiththeASprogramwillreduceplatformfees.

Summit has entered into newmutual fund trading/service agreementwith: Anfield –Universal FixedIncomeFund;CrowPoint–Allfunds;DayHagen–TacticalAllocationFundandTacticalDividendFund;Balter–DiscretionaryGlobalMacroFund,EuropeanL/SSmallCapFund,Event-DrivenFund,L/SSmallCapFund.ThesealongwithadditionalfundswillbeofferedintheASProgram.

SummithasremovedtheCustomUMAStrategyandFixedIncomeSeparateAccountStrategy


ITEM3-TABLEOFCONTENTSITEM1-COVERPAGE....................................................................................................................1

ITEM2-MATERIALCHANGES..........................................................................................................2

ITEM3-TABLEOFCONTENTS..........................................................................................................4

ITEM4-ADVISORYBUSINESS..........................................................................................................5

ITEM5-FEESANDCOMPENSATION..................................................................................................12

ITEM6-PERFORMANCE-BASEDFEESANDSIDEBYSIDEMANAGEMENT....................................................21

ITEM7-TYPESOFCLIENTS..............................................................................................................22

ITEM8-METHODSOFANALYSIS,INVESTMENTSTRATEGIESANDRISKOFLOSS..........................................23

ITEM9-DISCIPLINARYINFORMATION................................................................................................29

ITEM10-OTHERFINANCIALINDUSTRYACTIVITIESANDAFFILIATIONS.....................................................30

ITEM11-CODEOFETHICS,PARTICIPATIONORINTERESTINCLIENTTRANSACTIONSANDPERSONALTRADING 36

ITEM12-BROKERAGEPRACTICES....................................................................................................37

ITEM13-REVIEWOFACCOUNTS.....................................................................................................38

ITEM14-CLIENTREFERRALSANDOTHERCOMPENSATION....................................................................39

ITEM15-CUSTODY......................................................................................................................40

ITEM16-INVESTMENTDISCRETION.................................................................................................41

ITEM17-VOTINGCLIENTSECURITIES...............................................................................................42


ITEM4-ADVISORYBUSINESSSummitAdvisorSolutions(“SAS”)isregisteredwiththeSecuritiesandExchangeCommission(SEC)asanInvestmentAdviserunder the InvestmentAdvisersActof 1940,with its principal placeof businessat14785PrestonRoad,Suite1000,Dallas,Texas.SASbeganconductingbusinessinNovemberof2001,andthefirmisawhollyownedsubsidiaryofSASCapitalPartners,LLC.SAShasanaffiliatedsistercompany,ArgentusAdvisors,LLCwhich isalsoanSECregistered investmentadviser.ArgentusAdvisorsprovidesinvestmentmanagementservicestothepublicthroughisregisteredinvestmentadviserrepresentatives.ItshouldalsobenotedthatSCAHoldings,LLCownsamajorityinterestinSASCapitalPartners,LLC.,henceamajority interest inSAS.SCAHoldingsalsoownsStrategicCapitalAlternatives,LLC,which isanotherSEC registered investment advisory firm.More information canbeobtainedaboutArgentusAdvisors,LLC.andStrategicCapitalAlternatives,LLC.byvisitingtheSEC’swebsiteatwww.advisorinfo.sec.gov.

PlatformServices–AdvisoryModel

SAS’smaininvestmentadvisorybusinessistoprovideadvisory,sub-advisoryandback-officesupporttoother investmentadvisoryfirms(“RIAs”).SAShasdevelopedanadvisoryplatforminwhichThird-PartyMoneyManagers(“TPMMs”)aremadeavailabletootherappropriatelyregisteredfirms(“RIAs”).TheseRIAsthenavailtheirclientstotheTPMMsontheplatformand/orofferAdvisorDirectedservicesinwhichthefirm’sFinancialAdvisorsworkindividuallywiththeirclient.SAS’saffiliatedfirm,ArgentusAdvisors,LLCalsoutilizesthisplatform.SASwillactasaTPMMontheplatformaswell(see“ManagedPortfolios”below).

The RIA’s investment advisory services are tailored to the individual needs of its clients. RIA clientsparticipatingintheprogramgrantdiscretionarytradingauthoritytoSASthroughtheirclientagreement.ThisdiscretionallowsSAStohireandfireTPMMsas itdeemsnecessary.TheRIA’sareresponsiblefordeterminingwhetheraTPMM’sportfoliosorstrategiesareappropriatefortheirclient

Aspartofitsservices,SASmayalsoberesponsibleforaccountadministration,feebilling,andreporting,and has developed internet-based software which provides the RIAs with the capability of directlymonitoring their client accounts, downloading information concerning changes in the program andaccessingcurrentinformationrelatedtotheprogram.SASdoesnotmaintaincustodyofclient’sassets,rather, the assets areheld at a qualified custodian such as, but not limited to, Charles Schwabor TDAmeritrade.

Baseduponfinancialandotherinvestmentinformationspecifictoandprovidedbyeachindividualclientto theRIA, theRIAmayproposeaportfolioofTPMMs tomanage theclient’sassets.TheportfolioofTPMMsisintendedtocombinemultipleassetstrategiesintoasingleportfoliowithinoneaccount.Whencreatingaproposalforaclient,ifaninstanceariseswherebyaTPMMsminimuminvestmentamountisgreaterthantheclient’savailablefundstomeetthatparticularTPMM’sintendedassetstrategy,SASmayrecommendand/ormakeavailableExchangeTradedFunds(“ETFs”)oropen-endedmutualfundsthatareapprovedbySASasalternatives forthoseTPMMs.SASortheRIAmayselectavailableTPMMsand/orETFsandmutualfundstobuildaninitialportfolio.

TheRIA’sFinancialAdvisorprovidesthespecificadviceconcerningtheselectionofTPMMs,ETFsormutualfundsthatSASmakesavailableontheplatform.IntroducingRIAsareresponsibleforensuringthattheirFinancialAdvisorsprovideregularandongoingcontactwithclients,allowingclient’stheopportunitytoupdateanychangestotheirfinancialorpersonalprofilesand/orinformSASofanyrestrictionstheymaywishtoproposeregardingthemanagementoftheiraccount.SASreservestherighttocancelservicesifitisnotabletoaccommodatetherestrictionsrequestedbyaclient.


TPMMsareselectedafterbeingevaluatedbySAS’sduediligenceprocess.SASreservestherighttoaddor remove TPMMs from the platform at its sole discretion. TPMMs acting in a “portfolio strategists”capacityontheplatformprovidetradesignalstoSASforSAStofacilitatethetradesintheclient’saccount.TPMMsactingina“portfoliomanager’s”capacityactuallyexercisetradingauthorityforaclient’saccountandoftendosoinaseparatelymanagedaccount(“SMA”).

PlatformServices–ServiceOnlyTPMMs

RIAsmayrequestthatadditionalTPMMsbemadeavailableontheSASPlatformforthatRIA’suseonly.SuchTPMMsarenotrecommendedbySAS.ForsuchTPMMs,theRIAfirmisresponsibleformaintainingtheduediligenceprocessandrecords.SuchTPMMsareconsideredtobe“ServiceOnly.”

ProprietaryManagedPortfolios

SASoffersitsownmenuofproprietarymodelsandstrategies.Thesemodelsandstrategiesarecreatedandmanagedaccordingtoinvestmentobjectivesoftheparticularmodelorstrategyandarenottailoredtothespecificneeds,investmentobjectives,risktolerances,orpreferencesofanyparticularRIAfirmclient.WhenappropriateandasdirectedbyanintroducingRIA,client’sassetswillsometimesbeinvestedintheseproprietarymodelsorstrategies.SinceSASservesastheinvestmentadvisertothesemodelsorstrategies,theamountoffeesthatSASreceiveswillbegreaterthanifthesestrategieswerenotincludedinaclient’saccount.ThispresentsaconflictofinterestwhichSASmitigatesbyprovidingthisdisclosurebrochuretoallclientsparticipatingintheprogram.

SomeoftheproprietarymodelsorstrategieswillsometimesemploytheuseofAlternativeinvestments.Alternativeinvestmentsinclude,amongotherthings,investmentsinlimitedpartnerships,REITs,hedgefunds,leasingagreementsandmanagedfutures.Someoftheseinvestmentsareissuedand/ormanagedbyfirmsassociatedwithSASsuchas,butnotlimitedto,AequitasManagement,GenesisCapitalLLC:theGraniteHarborTacticalFund(GHTFX)andtheGraniteHarborAlternativeFund(GHAFX).BecauseoftheassociationbetweenSASandtheseissuersandfunds,SAShasaninherentincentivetoutilizetheseissuesandfunds,whichcreatesaconflictofinterest.

TacticalETFPortfolios

The SAS Tactical ETF Portfolios are offered in seven different strategies including four core strategiesrangingfromVeryAggressivetoConservative.Additionally,threecategorystrategiesarealsoavailable:High Income, International Equity, and Commodities. Each portfolio is designed to achieve certaininvestment objectives which are fully disclosed to clients through the preparation of an investmentproposal. For example, clients desiring pure capital appreciationmay be suited for the 100% equity-allocatedVeryAggressiveorInternationalportfolios.Alternatively,clientswhoneedincomemaychoosetheHighIncomeportfolio.SASoffersfourmulti-assetportfoliosthatincludefixedincomeandequitieswhich benefit from asset class diversification. The portfolios are actively traded at SAS’s discretionpursuant to a tactical strategy based on a series ofmacroeconomic, fundamental, risk and technicalvariableswiththeaimofadjustingassetclassexposuresopportunisticallywithmarketmovements.

StrategicETFPortfolios

The SAS Strategic ETF Portfolios are managed primarily using exchange traded funds (“ETFs”). Theportfoliosarenotactivelymanaged,butseektotrackperformanceofvariousindices.Eachportfolioisre-balancedonanannual basis andmaybe re-allocated, if necessary. Thereare fivedifferent strategiesrangingfromVeryAggressivetoVeryConservative. ETFallocationsareintendedtotracktheirunderlying


equity, fixed income, and commodity indices. SAS utilizes its discretion in determining the portfolioholdingsbaseduponmacroeconomicandfundamentalvariables,amongothers.

AdaptivePortfolios

TheSASAdaptivePortfoliosarecomprisedexclusivelyofmultiple tactically-orientedsub-advisors.Theprogramoffersfouruniqueportfoliosavailabletomatchdistinct investorriskprofiles:DynamicAlpha,DynamicGrowth,DynamicCore,andDynamicIncome.SAShascarefullyevaluatedthecorephilosophiesandportfolioprocessesofeachunderlyingsub-advisorinordertoprovideacomplementarycombinationofmoneymanagement styles for clients seeking additional levels of diversification against traditionalstockandbondmarketexposure.Thesub-advisorsinthefourdifferentstrategiesbringtheirownuniqueandindependentdecision-makingprocesstotheportfolioswhichallowsforawell-diversifiedallocationthatseekstoofferlowerportfoliovolatilityandmorestringentinvestmentcapitalriskcontrols.TheSASAdaptive Portfolio strategies are designed to manage market exposures across multiple asset classcategoriesviaETF’sandmutualfunds.Thetradingthatoccurswithintheportfoliosisdeterminedbythesub-advisorsandmayutilizeinverseindexETFinstrumentsduringperceivedperiodsofacuteriskaswellasmodestutilizationofleveragedindexETFinstrumentsduringperceivedperiodsofheightenedreward.SAS is responsible for the selection of the sub-advisors to be included in a given portfolio and theweightingofthosesub-advisors.

FusionPortfolios

TheSASFusionPortfoliosarecomprisedofacombinationofbothstrategicandtactically-orientedsub-advisory strategies.Theprogramoffers fouruniqueportfoliosavailable tomatchdistinct investor riskprofiles:OpportunisticGrowth,DefensiveGrowth,Growth&Income,andConservativeGrowth.SAShascarefullyevaluatedthecorephilosophiesandportfolioprocessesofeachunderlyingsub-advisorinorderto provide a complementary combination ofmoneymanagement styles for clients seeking additionallevelsofdiversificationagainsttraditionalstockandbondmarketexposure.Thesub-advisorsinthefourdifferentstrategiesbringtheirownuniqueand independentdecision-makingprocesstotheportfolioswhich allows for a well-diversified allocation that seeks to offer lower portfolio volatility and morestringent investment capital risk controls. TheSASFusionPortfolio strategiesaredesigned tomanagemarketexposuresacrossmultipleassetclasscategoriesviaindividualequities,ETF’sandmutualfunds.Thetradingthatoccurswithintheportfoliosisdeterminedbythesub-advisorsandmodestutilizationofleveraged index ETF instruments may be employed. SAS is responsible for the selection of the sub-advisorstobeincludedinagivenportfolioandtheweightingofthosesub-advisorallocations.

PreservationStrategy(bothETFandnon-ETF)

Theprimaryobjectiveof thePreservationStrategy is topreserve capital andproducea return that isgreaterthantheriskfreerateofreturnsafterfees.ThePreservationStrategyusesa3-Dimensionalassetallocationstrategyasopposedtothetraditionalassetallocationbetweenstocksandbonds.Byaddingnon-correlatedasset classes (alternatives) inameaningfulway, thePreservationStrategyattempts toreducethevolatilityassociatedwithtraditionalstockandbondassetallocations.

OptimalBalancedStrategy(bothETFandnon-ETF)

TheprimaryobjectiveoftheOptimalBalancedStrategyistoproducetheoptimalriskadjustedrateofreturnwhen compared to a traditional balanced allocation. TheOptimal Balanced Strategy uses a 3-DimensionalAssetAllocationStrategyasopposedtothetraditionalassetallocationbetweenstocksand


bonds.Byaddingnon-correlatedassetclasses(alternatives)inameaningfulway,theOptimalBalancedStrategyattemptstoreducethevolatilityassociatedwithtraditionalstockandbondassetallocations.

ModerateGrowthStrategy(bothETFandnon-ETF)

The Primary objective of theModerate Growth Strategy is to producemoderate equity returnswithreduced volatility. TheModerate Growth Strategy uses a 3-Dimensional Asset Allocation Strategy asopposedto thetraditionalassetallocationbetweenstocksandbonds.Byaddingnon-correlatedassetclasses(alternatives)inameaningfulway,theModerateGrowthStrategyattemptstoreducethevolatilityassociatedwithtraditionalstockandbondassetallocations

OpportunisticGrowthStrategy(bothETFandnon-ETF)

ThePrimaryobjectiveoftheOpportunisticGrowthStrategyistoproducemoderateequityreturnswithlessvolatilitywhencomparedtotraditionalequitymarkets.TheOpportunisticGrowthStrategyusesa3-DimensionalAssetAllocationStrategyasopposedtothetraditionalassetallocationbetweenstocksandbonds. By adding non-correlated asset classes (alternatives) in a meaningful way, the OpportunisticGrowth Strategy attempts to reduce the volatility associated with traditional stock and bond assetallocations.

ConcentratedEquityStrategy(bothETFandnon-ETF)

TheConcentratedEquityStrategyseekstocapturelong-termcapitalgrowthbyutilizingaconcentratedportfolioofequitiesthataimtogenerateabovebenchmarkreturn.Sub-advisersarehiredtoprovideahigh conviction list pursuant to its custommandate. As a result, clients benefit from a portfolio thatleveragesthecombinedwisdomofnumerousmoneymanagers.

ManagedLiquidAlternativePortfolio

TheManagedLiquidAlternativePortfolioseekstoprovideadiversifiedpoolofliquidalternativeinvestmentsthatmayreducecorrelationandvolatilityascomparedtotraditionalequitymarkets.Itiscreatedwithacore/satelliteapproachinamulti-strategy,multi-managermannerwithmultiplefundsblendedtogethertoaccomplishanoverallalternativemix.Thecoreiscomprisedofmulti-strategyfundsandtheresidualisthenfurtherdiversifiedwithsinglestrategyfundsthatcanenhanceaparticularalternativestrategy.

FixedCore

TheFixedCorePortfoliousesmutualfundsand/orETFstoprovideexposuretothefixedincomemarkets.TheportfolioseekstotrackgenerallywiththeBarclaysAggregateBondIndexwithagoaloflongtermoutperformanceandhigherincomegeneration.Theportfoliomayactivelyallocatetofundsinvestingincomebearingsecuritiesofallkindsandallcreditqualities.

FixedOpportunistic

TheFixedOpportunisticPortfoliosusemutualfundsand/orETFstoprovideexposuretonicheincomemarketsthatmayprovideattractivetotalreturnprospectsand/orincomegenerationascomparedtotraditionalinvestmentgradebondassets.Theportfoliowillallocatetohighyieldbonds,emergingmarketbonds,preferredstock,MLPsand/oranumberofotherassettypes.

AlternativeIncomeStrategy

IncooperationwithandasdirectedbyanRIAfirmclient,SASofferstheAlternativeIncomeStrategy.ThisstrategyisapassiveportfoliothatallowstheRIAtoaccessunique,non-traditionalsecuritiesforthe


benefitofhis/herclient(s).IncludedbutnotlimitedtothisportfolioarePrivateofferingssuchasnotesandLLCs,non-tradedsecuritiessuchasREITsorPreferredstock,andStructuredNoteseithercustomizedtotheRIAorpurchasedfromtheopenprimaryandsecondarymarkets.Whiletypicallyincomegeneratinginnature,structurednotesmaybegrowthorientedaswell.Securitiesintheseportfoliosareuniquetoandintendedtoachievethegoalsoftheindividualinvestoranddonotattempttotrackanyspecificmarketindex.

CustomIncomeStrategy

TheCustomBondStrategy isacustomizedportfoliocreated inconcertwith theRIAand theportfoliomanagerinadherencetothegoalsoftheportfolioowner.Corporatebonds,Municipalbonds,MortgageBacked securities, Alternative Income securities as well as Mutual Funds and ETFs may be boughtindividuallyorasapartofaladderedorbar-belledportfoliotofulfillinvestmentgoalsorasapieceoftheclient’soverallportfolioallocation.Securitiesintheseportfoliosareuniquetoandintendedtoachievethegoalsoftheindividualinvestoranddonotattempttotrackanyspecificmarketindex.

CustomPortfolioConsultingServices

SASprovidesRIAfirmswithCustomPortfolioConsultingServices (“CPCServices”).SASworkswiththeRIAfirmtoconstructCustomPortfolios(“CustomPortfolios”)whichRIAfirmmaythenapplytoalloraportionofitsclient’sprogramassets.ForallprogramaccountassetsinvestedintheseCustomPortfolios,theRIAshallassessaCPCServicesfeelistedintheadvisoryagreementbetweentheRIAfirmanditsclient.AlloraportionoftheCustomPortfoliosmaybeinvestedinotherthird-partymoneymanagers,inwhichcasethethird-partymoneymanager’sfeewouldapply.

RevenueSharingwithMutualFunds

SASoroneofitsaffiliatesprovidetradingservicesand/ormarketingservicestoseveralmutualfundsthatare,attimes,recommendedbyanRIAoroneof itsFinancialAdvisorsorutilizedbySASwithinoneormoreofitsproprietarymanagedportfolioofferingsorbyaThird-PartyMoneyManageravailableontheSASadvisoryplatform,withinoneofitsmanagedportfolioofferings.Currently,thosemutualfundsare:

GVTIX&GVTAX–NLFTIIITacticalAssetAllocationFundNFMAX,NFMCX&NFMIX–NewfoundMulti-AssetIncomeFundNFBAX,NFBCX&NFBIX–NewfoundTotalReturnFundNFGIX&NFGAX–NLFTIIINewfoundRiskMgdGlobalFundPWRIX&PWRAX–NLFTPowerIncomeFundsAFLIX,AFLEX&AFLKX–Anfield:UniversalFixedIncomeFund“UFIF”DHAAX,DHACX,DHAIX–DayHagenTacticalAllocationFundDHQAX,DHQCX,DHQIX–DayHagenTacticalDividendFundBGMIX,BGMVX–BalterGlobalMacroFundBESMX,BESRX–BalterEuropeanL/SSmallCapFundBEVIX,BEVRX–BalterEvent-DrivenFundBEQIX–BalterL/SSmallCapFundCrowPoint–Allfunds

WhiletheRIAdoesnotreceiveanyadditionalcompensationwhensuchfundsormodelsareincludedinthe client’s portfolio, SAS or one of its affiliates does receive fees from the funds for the services itprovides.Thiscreatesaconflictofinterestwhensuchfundsarerecommendedand/orincludedinthe


client’smanagedaccount(s).SASmitigatesthisconflictbykeepingcompensationtotheRIAneutralandbyprovidingthisdisclosuretoyouinthisdisclosurebrochure.

AdvisorSelectProgram:

SAShasaddedtheAdvisorSelectProgramtoitsmenuofofferings.TheAdvisorSelect(AS)ProgramisaplatformoptionavailabletoRIAfirmstoutilizewhichmayreducetheplatformfeestotheRIAfirm’sendclient.TheASprogramiscomprisedofthemutualfundsandETF’slistedabove,inwhichtheunderlyingManagersofthesefunds/ETFshavecontractedwithSASandhaveagreedtopayafeetoSAS.ThefeesSASreceivesfromthefunds/ETFswillbeusedtooffsettheplatformfeenormallyassessedtotheRIA’sclients.RIAshavetheoptiontobuildmodelsorstrategiesthatutilizethesefunds/ETF’s.SASwillworkwiththeRIAfirmtodevelopallocations,modelsandstrategiesaswellasprovideongoingconsultationasneededandorrequested.SASwillalsocommunicatewithRIAstomakethemawareofnewinvestmentsthatarepartoftheASplatformuniverseaswellasrecommendedpotentialshiftsintheallocations/holdingsthatmakeuptheRIA’smodelsorstrategies.EachinvestmentoptionintheASprogramwillbelistedalongwiththeirassociatedplatformfeesotheRIAfirmcancalculatethereductioninplatformfeesbasedontheallocation.RIAfirmscaninvestinanyofthefundsassociatedwiththeASprogramalongwithotherfundsandETF’stocompletetheirmodelallocations.However,onlytheinvestmentsassociatedwiththeASprogramwillreduceplatformfees.TheplatformfeeoffsetisdesignedtomitigatetheconflictofinterestthatwouldexistbythevirtueofSASreceivingcompensationdirectlyfromthefunds.RIAclientsshouldbeawarethattheplatformfeeoffsetdoesnotnecessarytranslateintoareductionintotalfeespaid,asthemutualfundsprovidingsuchpaymentstoSASwillchargetheclientthroughthefund’sinvestmentmanagementfee.

ArgentusAdvisors’FinancialAdvisorasPortfolioManager

Some of SAS’s affiliate, Argentus Advisors’ Financial Advisors offer their own Portfolio ManagementServices.SuchserviceshavetheirownassetmanagementfeescheduleandmaximumfeechargeswhenofferedthroughArgentusAdvisors,LLC.

SpringCapital–ADEPTStrategy

The Spring Capital ADEPT StrategyModel utilizes a strategy known as the AdvancingDividend EquityPortfolioTheory.Thisisatotalreturnstrategybasedontheassumptionthatalargepercentageoflong-termtotalmarketreturnsareattributedtodividends.Thestrategyfocusesoncompaniesthatnotonlyhavealongdividendhistory,butalsohaveahistoryofincreasingdividendsonaregularbasis.Guidedbymetricssuchasastrongbalancesheet,goodproducts,soundmanagement,andlimitingexposuretohighyieldstocks,themodelmanagerselectsthecompaniesthatlooktocontinuepasttrends.Theportfolioseeks companies it believes displays relative value and good growth characteristics. Investmentopportunitiesarenotlimitedbymarketcapitalization,industrysectororgeographiclocation.

Solicitors

FromtimetotimeSASutilizessolicitorstointroducepotentialclientstoitsservices.SolicitorsaretypicallyregisteredasinvestmentadviserswitheithertheSECortheappropriatestateauthorityandwillprovidesomelevelofadvicesuchassuitabilityand/orrisktoleranceassessment.Asolicitorisnotinvolvedintheactualassetmanagementoftheclient’saccount.Solicitorsshareintheadvisoryfeespaidbythe client,


however,theclientisnotpayinganymoreforadvisoryservicesthanheorshewouldiftherewerenosolicitorinvolved.SolicitorsarerequiredtoprovideclientswithaSolicitorsDisclosureStatement,whichelaboratesonthesolicitor’sroleandtherelationshipbetweenthesolicitorandSAS.

Wrap-FeeProgramAccounts

AWrapFeeProgramisaninvestmentadvisoryprograminwhichyoupayonefeeforboththeinvestmentadvisoryservicesandthetransactioncostsinyouraccount.SASoffersitsvariousadvisoryprogramsaseither a traditional, non-wrap fee program or as a wrap fee program. Depending on the underlyinginvestmentsinyourWrapFeeProgramaccountandhowmuchtradingyouexpecttodo,youmaypaymoreforaWrapFeeProgramaccountthanifyouchoseanadvisoryprogramthatdoesnothavea“wrapfee”offering,orifyouchosetopayseparatelyforallofyourtransactioncosts(e.g.–paytheadvisoryfeeplusalltransactioncommissionsseparately).Similarly,yourFinancialAdvisormayreceivemoreor lesscompensation on your wrap fee program depending on the same circumstances. This difference incompensationpresentsaconflictofinterestthatyoushouldbeawareofandthatyoushoulddiscusswithyourRIAfirmandtheirFinancialAdvisor.

Bearinmind,youcanpurchaseservicessimilartothoseofferedinSAS’sWrapFeeProgramseparatelyfrom unaffiliated financial service providers. Wrap Fee Programs may cost you more or less thanpurchasingtheservicesfromanotherinvestmentadviser.Somefactorstoconsider,otherthantheWrapFeeitself,whencomparinginvestmentadvisersinclude:(i)Accountmaintenanceandcustodialfees;(ii)Accountspecialhandlingfees,suchaswirefundsfees;(iii)Volumeoftradingactivityanticipatedinyouraccount;(iv)Commissionstobechargedinlieuofawrapfee;and,(v)Accounttermination,statementandconfirmationfees.Youshouldreviewallthecostsforeachofthemanagementservicesseparately(andmutual fund fees and expenses when applicable) when analyzing the cost of an SASWrap FeeProgram.

YourRIA,throughtheirFinancialAdvisor,willworkwithyoutorecommendwhetheryoushouldutilizeaWrapFeeProgramornot,basedonyourindividualcircumstanceandanticipatedtradingactivity.PleasediscusswithyourRIAandtheirFinancialAdvisorallfeesandcostsassociatedwithyourWrapFeeProgramaccount. ForfurtherinformationregardingSAS’sWrapFeePrograms,pleaserequestacopyofSAS’sWrapFeeProgramDisclosurebrochurefromyourRIAortheirFinancialAdvisor.

AMOUNTOFASSETSUNDERMANAGEMENT

AsofDecember31st,2015SAShadapproximately$1,960,000,000ofassetsundermanagement.Thereare no non-discretionary arrangementswith respect to assetmanagement services between SAS andclientsatthistime.

NOTEFORERISAPLANS:SASacknowledgesitsstatusasaregistered“investmentadviser”withtheSEC.FinancialAdvisorshavetheabilitytoandmayprovidefiduciaryand/ornon-fiduciaryservicestoretirementplans(i.e.,401k,403b,etc.).RetirementplansmayormaynotbesubjecttotheU.S.DepartmentofLabor’sEmployeeRetirementIncomeSecurityAct(”ERISA”).

WithrespecttoadvisoryservicesprovidedtoERISAaccounts,SASalsoacknowledgesitsstatusasa“fiduciary”withinthemeaningofERISAsection3(21).Inmostcases,theadvisorisanERISA3(21)fiduciarytaskedwith"recommending,""assisting,""helping,"or"advising"thesponsorasthesponsorgoesaboutmakingselection/monitoring/replacementdecisions.


ITEM5-FEESANDCOMPENSATION

ThissectionisintendedtoassistyouinunderstandingthecostsassociatedwithSAS’sinvestmentadvisoryofferings.Youshouldreadthissectioncarefullyandalsorefertoyourinvestmentadvisoryagreementforafulldescriptionoftheamount,terms,andcalculationoftheadvisoryfeeapplicabletoyourselectedadvisoryservice,aswellas,informationconcerningticketcharges,refundsandcontracttermination.Thefeesandcostsmaybemoreor lessthanifyoupurchasedaportfolioofsimilar investmentsthroughabrokeragearrangementorsimilarservicesthroughanotherinvestmentadviser.Itisimportantthatyouevaluatetheservicesreceivedinlightofthefeesandcosts. SASreservestherighttonegotiatefees,whichmay take intoconsideration,amongother things,elements like sizeofaccountand thecomplexityofservices. BesuretoaskyourRIAfirm’sFinancialAdvisorabouttheadvisoryprogram(s)consideredbyyouandwhatothercostsyoumayincur.

Youshouldbeawarethatyoumayincuradditionalfeesassessedbyyourcustodianorbytheindividualinvestments within your account. Custodians charge their own transaction and administration fees.DependingonwhetheryouareparticipatinginaWrapFeeProgramornot,somecustodialfeesmaybeincludedinyouadvisoryfee,however,notallfeeswouldbeincluded.Youwanttorefertoyouradvisoryagreement,aswellasyourcustodialagreement(s)whenyouopenyouraccounttohelpyouunderstandwhatfeesyoumaybesubjectto.Additionally,someinvestmentproductsponsorssuchasmutualfundsandUIT’sassesstheirownmanagementfees.Suchfeesareinadditiontotheadvisoryfeesyoupay.YoushouldconsultwithyourRIA’sFinancialAdvisoranddiscussallthefeesapplicabletoyouraccountandinvestmentselectionsbeforemakinganyinvestmentorbuyingdecisions.

AnnualProgramFee

ForProgramassetsontheplatform,SASchargesan“AnnualProgramFee.”SASretainsaportionoftheAnnual Program Fee as compensation for providing and administering the advisory platform andmaintaining the relationshipswith the Third-PartyMoneyManagersmade available on the platform.Dependingonwhoyouradvisorycontractiswith,SASmaychargetheAnnualProgramFeedirectlyormayassesstheAnnualProgramFeeasanagentfor in introducingRIAfirm, inwhichcase,theRIAfirmwillsometimesshareaportionoftheAnnualProgramfeewithSAS. ThiscompensationfortheRIAfirmcouldincentivizetheRIAfirmtoofferSAS’sadvisoryplatformoveritsotherofferings,presentingapotentialconflictofinterest.SASencouragesyoutoreadtheintroducingRIAfirm’sdisclosurebrochurecarefullybeforemakinganyinvestmentdecisions.

TheAnnualProgramFeegenerallyincludescustodialtransactionchargesifyouareinaWrapFeeProgramaccount, however, the Annual Program fee does not cover any margin interest, national securitiesexchange fees, charges for transactions not executed through the custodian, costs associated withexchangingcurrencies,feesandexpenseschargedbymutualfundsoranyinvestmentcompanyinwhichtheassetsmaybeinvested,wiretransferfeesorotherfees.Youshouldalsounderstandthatmarkups,markdownsandspreadschargedbyadealerunaffiliatedwiththecustodianaresometimesincludedinthepriceofcertaintransactionsexecutedonyourbehalf.OnoccasionanddependingonwhatTPMMservices are subscribed to, trades in your account (including Wrap Fee Program accounts) may beexecuted on a “stepped-out” basis. This means the RIA firm or its agent stepped away from yourestablishedaccountcustodianandpurchasedorsoldaninvestmentatanotherbroker/dealer.Thismaybe done for several reasons. For example, the particular investment was not available through youraccountcustodian.Thecostforsuch“stepped-out”tradesareincurredbyyou,inadditiontoanyotherfeesyouaresubjectto.


AportionoftheAnnualProgramFeeispaidtotheThird-PartyMoneyManagersascompensationbasedontheassetsinvestedintheirrespectiveModels.TheAnnualProgramFeeisnegotiableandcanrangefrom.10%to1.50%,annually,andmaydifferfromclienttoclientbaseduponanumberoffactors.TheintroducingRIAfirm’sfee(orFinancialAdvisor’sFeeasitisoftenreferredto)isinadditiontotheAnnualProgramFee.InthecaseofsolicitorsofSAS,SASdoesnotallowthetotaladvisoryfee(ProgramFeeplustheintroducingRIA’sfee/orFinancialAdvisor’sFee)toexceed2.60%annually.InthecaseoftheSpringCapital–ADEPTStrategy,thetotaladvisoryfeewillnotexceed1.50%annually.

AdvisorSelect(AS)Program:

SAShasarrangementswithseveralmutualfundsandETFswhichpaySASformakingtheirfundsavailableontheplatform.SASoffersthesefundsthroughitsASProgram.WhenRIAfirmsutilizetheASProgram,platformfeespaidbyclientsareoffsetbythecompensationreceivedbySASfromthevariousmutualfundcompanies.Thisoffsetismeanttomitigatetheconflictofinterestthatexistbyvirtueofsuchpayments.Whileoffsetting such fees receivedmaymitigate the conflict for SAS and level out the compensationreceivedbySAS,itdoesnotmaketheplatformanylessexpensivetotheclient.ThefeepaidtoSASbythemutualfundsisincludedinthemutualfund’sinvestmentmanagementfeeandpaidbytheclient. Themax feeSAScharges forassets in theAdvisorSelectProgram is0.25%minusanmutual fundrevenueoffset.

Third-PartyMoneyManagersandtheAnnualProgramFee:

EachThird-PartyMoneyManagerhastheirownfeeforserviceswhich is incorporatedintotheAnnualProgram Fee. As a result, the Annual Program Fee will vary, depending on the Third-Party MoneyManager(s)selected.

Alternative Investments–Alternative Investments include,amongothers, investmentsmade in limitedpartnerships,hedge funds,businessdevelopmentcompaniesandpossiblycertainmutual funds.Somealternative investmentsare issuedbyormanagedby firmsassociatedwithSASsuchasAequitas,ACAMasterSelectSeriesTrust,GenesisCapitalLLC:theGraniteHarborTacticalFund(GHTFX)andtheGraniteHarborAlternativeFund(GHAFX),which,whenrecommendedbySAS,presentsaconflictofinterest.SASwillsometimesassesstheRIAa“reporting”feeforprovidingconsolidatedreportingonsuchassets.TheRIAfirmwilloftenpassthiscostalongtoyouastheinvestor..

PortfolioManagementServices

PortfolioManagementservicesareofferedontheSASPlatformalongwiththeotherThird-PartyMoneyManagers. As with the Third-Party Money Managers, fees for these services are included in AnnualProgramFee,describedabove.All feesarenegotiable.TheProgramFeeSASassesses it’sRIAs for thefollowingstrategieswillnotexceed0.90%:

• TacticalETFPortfolios• StrategicETFPortfolios• AdaptivePortfolios• FusionPortfolios• PreservationStrategy(ETFandnon-ETF)• OptimalBalancedStrategy(ETFandnon-ETF)• ModerateGrowthStrategy(ETFandnon-ETF)• OpportunisticGrowthStrategy(ETFandnon-ETF)• ConcentratedEquityStrategy


• ManagedLiquidAlternativePortfolios• FixedCorePortfolios• FixedOpportunisticPortfolio• AlternativeIncomeStrategy• CustomIncomeStrategy• CustomPortfolioConsultingServices

IntroducingRIAFees/FinancialAdvisor’sFees

The Program Fee includes sub-advisory and reporting services provided by SAS, as well as the feesassociatedwithanyTPMMfees(whenselected). YourRIAfirmwillsometimesmark-upthesefeesaswell.ThetotalProgramFeewillbedelineatedinouradvisoryagreementwithyourRIA.

In addition to the Annual Program Fee, you are assessed a Financial Advisor’s Fee. This representscompensationprovidedtoRIAfirm,aportionofwhichissharedwithyourFinancialAdvisor.

FeeCalculations

Asmentionedabove,eachThird-PartyMoneyManagermayhaveadifferentAnnualProgramFee,whichwillapplytothevalueoftheassetsbeingmanagedunderthatparticularThird-PartyMoneyManager’sstrategy.Duetothefactthatthevalueoftheassetsmanagedfluctuatesfromperiodtoperiodand,inaddition, the Annual Program Fee for each Third-Party Money Manager may be different, the TotalPortfolioManagementFeewillfluctuatefromperiodtoperiod. Thisisafunctionofthefactthatdifferentsleevesofyourportfoliomayemploydifferentmanagerswithdifferingfees.ThepercentageyoupayfortheservicesofeachindividualThird-PartyMoneyManageroryourFinancialAdvisordoesnotchange.

Asanadvisoryplatform,SASprovidesservicestoamultitudeofRIAfirms.Eachfirmmayhavetheirownmethodforcalculatingadvisoryfees.Describedbelowarethecurrentmethods inwhichadvisoryfeesare calculated. For informationonexactlyhowyouradvisory feesare calculated,please refer toyourinvestmentadvisoryagreement,whichyouwouldhaveenteredintowithyourRIAwhenyousignedupforadvisoryservices.

BilledinAdvanceQuarterlyusingAverageDailyValue–Theinvestmentadvisoryfeeisassessedquarterlyinadvanceofservicesbeingrenderedandwillbebasedontheaveragedailyvalueoftheassetsbeingmanagedoverthepreviouscalendarquarter. TheinitialFeeisbasedonthevalueoftheassetsdepositedatthetimeservicesbegin.Otherthantheinitialdeposit,additionaldepositorwithdrawaladjustmentsareaccountedforatthebeginningofthenextcalendarquarterbasedontheaveragedailyvalueofthemanaged assets for the prior period. If you should terminate advisory services, any unearned feescollectedinadvancewillbecreditedbacktoyouraccountpromptly.SASmaynotpro-ratedepositsorwithdrawalsthataredeminimis.

Billed in AdvanceMonthly using AverageDaily Balance –This fee calculation is identical to “Billed inAdvanceQuarterlyusingAverageDailyBalance,”however,thetimeperiodiseachcalendarmonthinsteadofeachcalendarquarter.

BilledinAdvanceQuarterlyusingEndofPeriodValue–Theinvestmentadvisoryfeeisbilledquarterly,inadvanceofservicesbeingrendered,andisbasedonthevalueoftheassetsbeingmanagedasofthelastdayofthecalendarquarter(endofperiod).Theinitialfeeisbasedonthevalueoftheassetsdepositedatthetimeservicesbeginmultipliedbythenumberofdaysremaininginthecalendarquarter.Interimdepositsandwithdrawalsthatarenotdeemedde-minimisarehandledthesameway.SASmaynotpro-


ratedepositsorwithdrawalsthataredeminimis. Ifyoushouldterminateadvisoryservices,anyunearnedfeescollectedinadvancewillbecreditedbacktoyouraccountpromptly.

BilledinAdvanceMonthlyusingEndofPeriodValue–Thisfeecalculationisidenticalto“BilledinAdvanceQuarterlyusingEndofPeriodValue,”however,thetimeperiodiseachcalendarmonthinsteadofeachcalendarquarter.

BilledinArrearsQuarterlyusingAverageDailyValue–Theinvestmentadvisoryfeeisbilledquarterly,inarrearsofservicesbeingrendered,andisbasedontheaveragedailyvalueoftheassetsbeingmanagedover the previous calendar quarter. The initial deposit and interim deposits and withdrawals areaccountedforbyusingthiscalculationmethod.Ifservicesareterminated,anyearnedanduncollectedfeeswillbedueandpayableimmediately.

BilledinArrearsMonthlyusingAverageDailyValue–Thisfeecalculationisidenticalto“BilledinArrearsQuarterlyusingAverageDailyValue,”however,thetimeperiodiseachcalendarmonthinsteadofeachcalendarquarter.

BilledinArrearsQuarterlyusingEndofPeriodValue–Theinvestmentadvisoryfeeisbilledquarterly,inarrearsofservicesbeingrendered,andisbasedonthevalueoftheassetsbeingmanagedasofthelastday of the calendar quarter (end of period). For deposits or withdrawals during the billing period,includingtheinitialdepositorfinalwithdrawal,thefeewillbeproratedoverthebillingperiodtoaccountforthedaysserviceswererendered.Ifservicesareterminated,anyearnedanduncollectedfeeswillbedueandpayableimmediately.

BilledinArrearsMonthlyusingEndofPeriodValue–Thisfeecalculationisidenticalto“BilledinArrearsQuarterlyusingEndofPeriodValue,”however,thetimeperiodiseachcalendarmonthinsteadofeachcalendarquarter.

YourinvestmentadvisoryagreementauthorizesSAStodeducttheinvestmentadvisoryfeesdirectlyfromyouraccount.

WrapFeePrograms

AWrapFeeProgramisaninvestmentadvisoryprograminwhichyoupayonefeeforbothinvestmentadvisoryservicesandthetransactioncostsintheProgramaccount.The“wrapfee”isnotbaseddirectlyupontheactualtransactionorexecutioncostsforthetransactionswithintheaccount(s).DependingontheunderlyinginvestmentswithintheProgramandhowmuchactualtradingactivityoccurs,youmaypaymoreorlessthanifyouhadelectedtosubscribetoanon-wrapfeeprogramandpayfortransactionscostsseparately.YourRIAfirmwillreviewthefeeoptionsavailabletohelpdeterminethebestoptionforyouto choose.Whether the service you elect is aWrap Fee Program or whether it is not wrapped andtransaction charges are assessed separately is stipulated on your advisory agreement. For moreinformationaboutSAS’sWrapFeePrograms,pleaseaskyourintroducingRIAforSAS’sWrapFeeProgramdisclosurebrochure.

FeeScheduleandMaximums

SASdoesnotutilizeasetfeescheduleforitsadvisoryservices.Instead,theTotalPortfolioManagementFeeisdeterminedbycombiningyourFinancialAdvisor’sFeewiththeAnnualProgramFeeoftheselectedservices and third-party money managers (TPMMs). For accounts where SAS is the RIA, SAS has amaximumTotal PortfolioManagement Feeof 2.60%per year. For the SpringCapital ADEPT Strategy,whenofferedthroughArgentusAdvisors,LLC,themaximumTotalPortfolioManagementFee is1.50%


per year. The specific fee you pay for advisory services offered by us is stipulated in your advisoryagreement.Allfeesarenegotiable.

ConflictsofInterest

IndustryAffiliations

Transactions in securities, such as fixed income securities, non-traded real estate investment trusts(REITs),preferredstock,andprivateplacements,willsometimesbeexecutedbySAS’sassociatedbroker-dealer,RPCapital,onbehalfofadvisoryclients.RPCapitalchargescommissionsormarkupsorreceivesothercompensationforeffectingthesesecuritiestransactions.Thiscompensation is inadditiontothefees noted above. Management persons and employees of SAS that are also licensed as registeredrepresentativesofRPCapital,willsometimesreceiveaportionofthiscompensation.ClientsshouldbeawarethatthiscreatesanincentiveforSAStorecommendinvestmentproductsbasedonthereceiptofadditionalcompensationtoRPCapital,ratherthantheneedsoftheclientorthequalityoftheinvestment,whichcreatesaconflictofinterest.SASendeavorsatalltimestoputtheinterestofitsclientsfirstaspartofourfiduciarydutyasaregisteredinvestmentadviser.SASreceiveswrittenconsentfromeachclientortheclient’sauthorized representativewheresuch transactionsareproposed.Additionally,SASandRPCapitalprovidesuchclientswithawrittenconfirmation foreachsuch transaction,prior tosettlementwhichincludes,butisnotlimitedto,adescriptionofthenatureofthetransaction,thedatethetransactiontookplaceandanyremunerationreceivedbyeitherRPCapitalorSASforthetransactions.SASandRPCapitalprovidesuchclientsortheclient’sauthorizedrepresentativeanannualreportthatsummarizesallsuchtransactionsandthetotalremunerationreceivefortheyear. Finally,SASandRPCapitalremindsuchclientsthattheymayrevoketheirconsent,inwriting,atanytime. ClientsarenotunderanyobligationtoengageRPCapitalwhenconsideringimplementationofadvisoryrecommendations.Theimplementationofanyorallrecommendationsissolelyatthediscretionoftheclient.

SASdirectstradestounaffiliatedbroker-dealers,whointurn,sharetradingrevenuewithRPCapital.ThisincentivizesSAStodirecttradestosuchbroker-dealers. SAShasadutytoseekbestexecutionatalltimesfor client trades it directs. SAShas this sameobligation for broker-dealerswhohave revenue sharingarrangements with RP Capital. SAS endeavors to mitigate this conflict of interest by ensuring bestexecutionwhensuchbroker-dealersareutilized.

RevenueSharingArrangementswithMutualFunds

Furthermore,forassetsinvestedinthefollowing:

GVTIX&GVTAX–NLFTIIITacticalAssetAllocationFundNFMAX,NFMCX&NFMIX–NewfoundMulti-AssetIncomeFundNFBAX,NFBCX&NFBIX–NewfoundTotalReturnFundNFGIX&NFGAX–NLFTIIINewfoundRiskMgdGlobalFundPWRIX&PWRAX–NLFTPowerIncomeFundsAFLIX,AFLEX&AFLKX–Anfield:UniversalFixedIncomeFund“UFIF”DHAAX,DHACX,DHAIX–DayHagenTacticalAllocationFundDHQAX,DHQCX,DHQIX–DayHagenTacticalDividendFundDHAAX,DHACX,DHAIX–DayHagenTacticalAllocationFundDHQAX,DHQCX,DHQIX–DayHagenTacticalDividendFundBGMIX,BGMVX–BalterGlobalMacroFundBESMX,BESRX–BalterEuropeanL/SSmallCapFundBEVIX,BEVRX–BalterEvent-DrivenFund


BEQIX–BalterL/SSmallCapFundCrowPoint–Allfunds

SAS,and/oranassociatedfirmofSAS,providesmarketingand/ortradingservicesfor thosemutualfunds,andwillultimatelyreceivetwosetsoffeesonthoseassets,oneadvisoryfeebasedontheplatformfeesdescribedherein,andonefeeembeddedintothenetassetvalueofthosemutualfundsthatispaidtoSASand/ortheassociatedfirm,andthusSAShasaconflictofinterestwhenrecommendingorwhenSASoraThird-PartyMoneyManagerutilizesuchmutualfundsinamanagedportfolio.

SAShasaddedtheAdvisorSelectProgramtoitsmenuofofferings.TheAdvisorSelect(AS)ProgramisaplatformoptionavailabletoRIAfirmstoutilizewhichmayreducetheplatformfeestotheRIAfirm’sendclient.TheASprogramiscomprisedofthemutualfundsandETF’slistedabove,inwhichtheunderlyingManagersofthesefunds/ETFshavecontractedwithSASandhaveagreedtopayafeetoSAS.ThefeesSASreceivesfromthefunds/ETFswillbeusedtooffsettheplatformfeenormallyassessedtotheRIA’sclients.RIAshavetheoptiontobuildmodelsorstrategiesthatutilizethesefunds/ETF’s.SASwillworkwiththeRIAfirmtodevelopallocations,modelsandstrategiesaswellasprovideongoingconsultationasneededandorrequested.SASwillalsocommunicatewithRIAstomakethemawareofnewinvestmentsthatarepartof theASplatformuniverseaswellas recommendedpotential shifts in theallocations/holdingsthatmakeuptheRIA’smodelsorstrategies.EachinvestmentoptionintheASprogramwillbelistedalongwiththeirassociatedplatformfeesotheRIAfirmcancalculatethereductioninplatformfeesbasedontheallocation.RIAfirmscaninvestinanyofthefundsassociatedwiththeASprogramalongwith other funds and ETF’s to complete their model allocations. However, only the investmentsassociatedwiththeASprogramwillreduceplatformfees.Theplatformfeeoffsetisdesignedtomitigatetheconflictof interest thatwouldexistby thevirtueofSAS receivingcompensationdirectly fromthefunds. RIA clients should be aware that the platform fee offset does not necessary translate into areductionintotalfeespaid,asthemutualfundsprovidingsuchpaymentstoSASwillchargetheclientthroughthefund’sinvestmentmanagementfee.

Investment advice, utilization within proprietary or Third-Party Money Manager portfolios, orrecommendations will sometimes also be provided on illiquid alternative investments. Associatedorganizations, in certain instances, are sometimes compensated for the distribution or sales of theseinvestmentvehicles,whichcreatesaconflictofinterestforSAS.

Itisimportanttopointoutthatthesearrangementsareaconflictofinterestandcanincentivizesomeonetorecommendthesefundsbasedonthecompensationreceivedratherthanbasedsolelyonyourneeds.You have the option to purchase investment products recommended to you by SAS through otherfinancialadvisory firmsand/orbroker/dealers thatarenotaffiliatedwithSAS.WedonotcompensateRIAsanymoreorlesstorecommendthesefundsnordowepromoteorincentivizeRIAs,inanyway,torecommendthesefundsoveranyotherfundswhichareavailableontheplatform.ThesepoliciesalongwithprovidingyouthisbrochurewithfulldisclosearehowSASaddressestheseconflicts.

ModelPortfolioManagementServicesandtheuseofaffiliatedadvisers.

TheModelPortfolioManagementStrategieswillsometimesemploytheuseofAlternativeinvestments.Alternativeinvestmentsinclude,amongotherthings,investmentsinlimitedpartnerships,REITs,hedgefunds, leasing agreements and managed futures. Some of these investments are managed by SAS’sassociatessuchas,butnotlimitedto,GenesisCapitalLLC:theGraniteHarborTacticalFund(GHTFX)andtheGraniteHarborAlternativeFund(GHAFX). BecauseoftheassociationbetweenSASandsomeofthesefunds,SAShasaninherentincentivetoutilizethesefunds,whichcreatesaconflictofinterest.


RegisteredRepresentativesandInsuranceAgents

WhileSAS isnotabroker-dealeroran insuranceagency,manyoftheRIA’sFinancialAdvisorsarealsoregistered representatives of broker-dealers and state licensed insurance agents. This means yourFinancialAdvisorwillsometimesreceivecommissionsforsecurityandinsurancerecommendationsyouexecutethroughhisorherbroker-dealeror insurancepractice.This relationshippresentsaconflictofinterestfortheFinancialAdvisor,asitcreatesanincentiveforyourFinancialAdvisortorecommendthepurchaseofsecuritiesandinsuranceproductsonthebasisofcompensationratherthanbasedonyourneeds. The RIA’s Financial Advisors are fiduciaries and have an ethical obligation to always put yourinterests before their own. Formore detailed information about how the RIAs handle these types ofconflicts,youshouldaskyourFinancialAdvisorforacopyofhis/herRIA’sdisclosurebrochuresuchasADVPart2A.

RIAFinancialAdvisorsprovidinginvestmentadviceonbehalfofSAS,whoareregisteredrepresentativesof a broker-dealer, will sometimes recommend their broker-dealer for brokerage services. Theseindividualsaresubjecttoapplicablerulesthatrestrictthemfromconductingsecuritiestransactionsawayfrom their broker-dealer unless the broker-dealer provides the Financial Advisor with writtenauthorizationtodoso.Therefore,theseindividualsmaybelimitedtoconductingsecuritiestransactionsthroughtheirbroker-dealer. Insomecasessuchbroker-dealer’schargehigher transaction feesand/orcustodialfeesthanotherbroker-dealerschargeforthesameservices.Also,iftransactionsareexecutedthroughthesebroker-dealers,theseFinancialAdvisors(intheircapacityasregisteredrepresentativesofthe brokerage firm) will somtimes earn commission-based compensation as a result of placing therecommended securities transactions through their broker-dealer. This practice presents a conflict ofinterestbecausetheFinancialAdvisorhasanincentivetoeffecttransactionsforthepurposeofgeneratingacommissionratherthansolelybasedonyourbestinterest.Additionally,thispracticecanprecludeSASfromachievingbestexecutionwithinsuchanadvisoryaccount. Youmayutilizethebroker-dealerofyourchoice,however,ifyouwantyourFinancialAdvisortobetheFinancialAdvisorofrecordforyouraccountandyoudonotchoosethebroker-dealeryourFinancialAdvisorisaRegisteredRepresentativeof,wemaynotbeabletoacceptyouraccount.

CustodialArrangements

ResearchandOtherBenefits

Werecommendthatclientsestablishbrokerageaccountswithacustodiantomaintaincustodyofyourassets and to execute trades for your account(s). Your custodian may provide us with access to itsinstitutionaltradingandoperationsservices,whicharetypicallynotavailabletoretail investors.Theseservicesareofferedtoindependentinvestmentadvisersatnochargeinexchangeforkeepingaminimumamountofaccountassetsatyourcustodian.Yourcustodian’sservicesincluderesearch,brokerage,andcustody.Yourcustodianoffersaccesstomutualfundsandotherinvestmentsthatareavailableonlytoinstitutionalinvestorsorrequireasignificantlyhigherminimuminvestment.Yourcustodianalsomakesavailabletousotherproductsandservicesthatbenefitusbutmaynotbenefityou,asaclientofSAS.Someoftheseotherproductsandserviceshelpusmanageandadministerclientaccounts,andincludesoftwareandothertechnologythat:

• provideaccesstoclientaccountdata(suchastradeconfirmationsandaccountstatements)• facilitatetradeexecution(andallocationofaggregatedtradeordersformultipleclientaccounts)• provideresearch,pricinginformation,andothermarketdata• facilitatepaymentofourfeesfromyouraccount(s)


• helpwithback-officesupport,recordkeeping,andclientreporting

Theseservicesmaybeusedwithallorevenasubstantialnumberofclients’accounts,includingaccountsnotmaintainedatyourcustodian.Wedonotattempttoallocatethebenefittoaccountsproportionatelytotheaccountsthatgeneratethebenefit.

Someoftheproductsorservicesprovidedbyyourcustodiandonotqualifyforthesafeharborinsection28(e) of the Securities Exchange Act of 1934, including those services that do not aid in investmentdecision-makingortradeexecution.Thesebusinessmanagementanddevelopmentservices,inadditiontothoselistedabove,mayincludeconsulting,publicationsandpresentationsonpracticemanagement,information technology, business succession, regulatory compliance, andmarketing. In addition, yourcustodianmayuseindependentthirdpartiestooffertheseservicestous.Yourcustodianmaydiscountor waive fees it would otherwise charge for some of these business management and developmentservicesorpayallorapartofthefeesofathird-partyprovidingtheseservicestous.Becausewemaypotentially receive discounts, research, products, or services we may have an incentive to select orrecommendacustodianbasedonourinterestinreceivingtheresearch,products,orservices,ratherthanontheclient’sinterestinreceivingmostfavorableexecution.

DueDiligenceMeetingsandGifts&Entertainment

Onoccasion, RIA’s and their Financial Advisors are invited by Third-PartyMoneyManagers (TPMMs),productsponsorsandotherinvestmentadvisoryfirmstoduediligenceandeducationalmeetingswhichtheyhost.TheRIAmaybelievethesemeetingstobevaluableinallowingtheirfirmandtheirFinancialAdvisorstheopportunitytobetterunderstandtheproductsandservicesofferedbysuchentities. Inmanycases,thehostingpartywilloffertopayforsuchexpensesasairfare,hotelrooms,localtransportationanddining. FormoredetailedinformationabouthowtheRIAhandlesthesetypesofconflicts,youshouldaskyourFinancialAdvisorforacopyofhis/herRIA’sdisclosurebrochuresuchasADVPart2A.

Additionally,Third-PartyMoneyManagers,productsponsorsandoutsideinvestmentadvisoryfirmswillsomtimesoffergiftsandentertainmentopportunitiestoRIA’sdoingbusinessonourplatformortheRIA’sFinancialAdvisor. Suchgiftsandentertainmentmaybedinner,sportingevents,concertsandthelike. Formore detailed information about how the RIA handles these types of conflicts, you should ask yourFinancialAdvisorforacopyofhis/herRIA’sdisclosurebrochuresuchasADVPart2A.

PoliticalContributions

Each RIA doing business on SAS’s platformwill have its own Code of Ethics, as well as, policies andproceduresaddressingpoliticalcontributions.FormoredetailedinformationabouthowtheRIAhandlesthesetypesofconflicts,youshouldaskyourFinancialAdvisorforacopyofhis/herRIA’sCodeofEthicsand/ordisclosurebrochuresuchasADVPart2A.

OtherFeesandExpensesYouMayIncur

The total advisory fees you pay and other costs associated with your account impact the overallperformanceofyourportfolio.ItisimportanttoreviewthesecostswithyourRIAfirmand/ortheRIA’sFinancialAdvisorwhenmakingyouradvisoryandinvestmentdecisions.Costsmayinclude,butarenotnecessarilylimitedto:

Internal Expenses– Internalmanagement feesandotherexpenseschargedbymutual funds,variableannuitiesandotherinvestmentproductsponsors(alsoknownasinternalexpenses). Allmutualfundsandvariableannuityproducts,aswellas,otherpooled investmentssuchashedge funds,REITsandother


alternativeinvestmentschargeafeeforthemanagementandoperationsoftheirofferings.Thesefeesimpacttheoverallinvestmentperformanceofyourportfolio.

BrokerageAccountFees–SASoffersitsservicesonvariousbroker-dealerandcustodialplatforms.Eachbroker-dealer and/or custodian assesses different account, service and transaction charges such as,transactionfees,wirefees,trade-awayfees,statementandconfirmationfees,etc.PleasediscussthesefeeswithyourRIAfirmandtheirFinancialAdvisorandrefertoyourbroker-dealer/custodialagreementformoreinformationonthesetypesoffees.

Short-TermTradingRedemptionFees–Somepooledinvestments,suchasmutualfunds,imposeshort-termtradingredemptionfeesashighas2%foractivelytradingorexchanginginandoutoftheirfunds.ThiscouldaffectyourRIAfirmand/orThird-PartyMoneyManager’sabilitytomanageyourportfolio,astheexistenceof these feesmay causeyourRIA firmand/or theThird-PartyMoneyManager todelayplacingtradestoavoidincurringtheseexpenses.

VariableAnnuityRidersandContractCosts–Variableannuitiesassessfeeswhichmayinclude,butarenotlimitedto,annualbaseannuityM&Echarges,optionalbenefitridercharges,underlyingsub-accountmanagementfeesandcontractsurrendercharges.

RightsofAccumulation–Manymutualfundfamiliesofferrightsofaccumulationorothersaleschargediscounts.Youshouldbeawarethat, formanyfundfamilies,sharesheld inadvisoryaccountsarenotcountedtowardsrightsofaccumulationand,therefore,maynotcounttowardssalesdiscountsonothermutualfundpurchasesyoumakeoutsideofyouradvisoryaccount.Youshouldconsultthemutualfund’sprospectusformoreinformationregardingrightsofaccumulationsandsalesdiscounteligibility.


ITEM6–PERFORMANCE-BASEDFEESANDSIDE-BY-SIDEMANAGEMENT

SASdoesnotchargePerformance-BasedorSide-By-SideManagementFees.

Performance-BasedFeesarefeesbasedonashareofcapitalgainsonorcapitalappreciationoftheassetsofaclient(suchasaclientthatisahedgefundorotherpooledinvestmentvehicle).

YourinvestmentmanagementfeeswithSASareassessedasapercentageofthetotalvalueofyouradvisoryaccountandarenotconsideredperformance-based.


ITEM7-TYPESOFCLIENTSSASgenerallyprovidesinvestmentadvisoryservicestoRIAfirmsandindividuals,includinghighnetworthindividuals. Toalesserextent,itmayalsoprovideservicestopensionandprofitsharingplans(otherthanplan participants), charitable organizations, and corporations or business entities. SAS provides anadvisory services platform. This platform is utilized by other registered investment advisory firms(referred to as RIA’s or RIA firm throughout this brochure). SAS has also entered into “solicitation”arrangementswithotherRIAfirms,wheretheRIAfirmintroducesprospectiveclientstoSASandprovidesforsuitabilityanalysis.

SAShasanaccountprogramminimumof$25,000forclientsdirectlycontractedwithSAS,however,thisminimumrequirementisatoursolediscretion,astheremaybeextenuatingcircumstanceswhichmaymakeitreasonabletoacceptanaccountwithalesservalue.

Each RIA and/or TPMMwill have its own account programminimums.When RIA firms utilize SAS’sadvisory platform, they establish their own account minimums through their investment advisoryagreementtheyhavewiththeirclients.


ITEM8-METHODOFANALYSIS,INVESTMENTSTRATEGIESANDRISKOFLOSSMETHODSOFANALYSIS

InvestmentCommittee

SASemploysawell-qualifiedgroupofInvestmentCommitteemembers.ThecommitteeischargedwiththeresponsibilityfortheselectionandoversightofPortfolioStrategistsandPortfolioManagersofferedontheadvisoryplatform.Inaddition,thecommitteemakesallinvestmentandallocationdecisionswithrespecttothefirm’sproprietaryinvestmentmanagementservices.

PortfolioStrategists

SASregularlyentersintoarrangementswithselected,unaffiliatedThird-PartyMoneyManagers(TPMMs)whereby SAS gains access to their proprietary investment portfoliomodels. These TPMMs are in thebusiness of constructing portfolios with specific investment objectives in mind. Through thesearrangements, the TPMMs have the obligation to make known to SAS the exact investments theypurchaseandsellintheconstructionoftheirportfoliosandSAShastherighttousethatinformationtopurchaseand sell the same investments in theaccountsonSAS’s advisoryaccountplatform. In thesearrangements, youarenot a clientof theTPMM. Instead, yourRIAwill provide youa “Manager FactSheet”alongwithandat the timeyouenter intoanadvisoryagreementwithSAS.ThisManagerFactSheetdescribes theTPMM’sportfoliogoals, investmentobjectivesandriskprofile.TheseTPMM’sarereferredtoas“PortfolioStrategists”inyouradvisoryagreementifsuchagreementisdirectlywithSAS.YourintroducingRIAfirmhastheresponsibilitytoassessandhelpdeterminewhich,ifany,oftheservicesprovidedbytheTPMM’saresuitableforyou.

PortfolioManagers

InsomecasestheTPMM’smanageyouraccountasa“separatelymanagedaccount”(orSMA).Withthesearrangements,theTPMMhasdiscretionoveralloraportionofyouraccountassetsandwillpurchaseandsellsecuritiesinyouraccountconsistentwiththeparticularportfolio’sstatedinvestmentobjectivesandriskprofile.TheseTPMM’sarereferredtoas“PortfolioManagers” inyouradvisoryagreement ifsuchagreementwithdirectlywithSAS.WhentheTPMMismanaginganSMAforyou,youwillbeprovidedthatTPMM’sdisclosurebrochure,whichwilldescribetheportfolioservicesingreaterdetail.

OverlayServices

TPMMsmayprovide “overlay services” for client accounts. If youelect toutilizeoverlay services, theTPMMselectedwillprovidediscretionaryinvestmentmanagementservices.Theoverlayserviceattemptstoharmonizeyourvariousprogramaccountsorassetsfortradingand/ortax-efficiencypurposesand/oremploys strategies such as hedging and leveraging across a portionor all of your programportfolios.Overlayservicesofteninvolvetheuseofoptionscontractsinordertoachieveitsstatedgoals.

EmergingManagers

EmergingManagersarethosewhosemodelsareaccessiblethroughSAS’sadvisoryplatformbutdonothavethelongevityortrackrecordthatatraditionalTPMMhas. ThoughtheseEmergingManagerTPMMstypicallyhavebeeninthefinancialservicesindustryforanumberofyearsandSASbelievesinthemeritsof their investment process, choosing them is more risky because they have not yet met the samedemonstrabletrackrecordofperformancewithaspecificmodelstrategyrequiredofotherTPMMs.Duediligencehasbeenperformedonthem,buttheirlevelofexperienceasdedicatedassetmanagersandthe


length of time they have run these particular strategies do not meet our standard due diligencerequirements.

Insomecases,theseEmergingManagerTPMMsarepersonsassociatedwithSASoroneofitsassociatedfirms.Inaddition,theEmergingManagerTPMMcouldalsobeactingasyourFinancialAdvisor.Assuch,a conflict of interest exists in that your Financial Advisorwill bemotivated to recommend his or herproprietaryassetmanagementservices.TheADEPTStrategy isanexampleofwherethisarrangementexists.With regard to the ADEPT Strategy, the EmergingManager TPMM/Financial Advisor caps thisservice at a flat 1.50% per annumwhen the EmergingManager TPMM/Financial Advisor is the partyengagingtheclientdirectly.Otheraffiliatedand/ornon-affiliatedFinancialAdvisorsofferingtheADEPTStrategyarenotcompensatedanymoreorlessforrecommendingthisprogram.

ThirdPartyMoneyManagerselectionprocess:

SASemploysamultiphaseapproachtoresearchingandselectingTPMMswhosemodelsareacceptablefor inclusion on SAS’s platform. Such TPMMs are evaluated using data and information from severalsources, including the manager itself and independent databases. Among the types of informationanalyzed are historical performance, investment philosophy, investment style and historical volatility.AlsoreviewedaretheTPMM’sFormADVdisclosurebrochuresandportfolioholdingsreportswhichhelpsus evaluate the TPMM’s securities selection process. To ensure accuracy, SAS attempts to verify allinformationbycomparing it topubliclyavailablesources.The investmentprofessionalsat theTPMMsareaprimarysourceofinformationtoSAS,providingquantitativeandqualitativeinformation.

OnceaTPMMisapprovedtobeofferedontheplatform,SASperformson-goingduediligencetoensuretheTPMMismeetingexpectations.IfaTPMMisnotmeetingexpectations,SASwillmonitortheTPMManddetermineifandwhentheyshouldberemovedfromtheplatform.

INVESTMENTSTRATEGIES

BUYANDHOLD

Portfoliomanagersmaypurchase,orrecommendforpurchase,securitieswiththeideaofholdingthemintheclient'saccountforayearorlonger.Typicallythemanagerwillemploythisstrategywhen:

• Themanagerbelievesthesecuritiestobecurrentlyundervalued,and/or

• Themanagerwantsexposuretoaparticularassetclassovertime,regardlessofthecurrentprojectionforthisclass.

Ariskinalong-termpurchasestrategyisthatbyholdingthesecurityforthislengthoftime,themanagermaynottakeadvantageofshort-termgainsthatcouldbeprofitabletoaclient.Moreover,iftheanalysisisincorrect,asecuritymaydeclinesharplyinvaluebeforethemanagermakesthedecisiontosell.

SHORT-TERMPURCHASES

Whenutilizingthisstrategy,aportfoliomanagermaypurchasesecuritieswiththeideaofsellingthemwithina relatively short time (typicallyayearor less).Themanagerwilldo this inanattempt to takeadvantageofconditionsthatitisbelievedwillsoonresultinapriceswinginthesecuritiespurchased.

Trading. SAS and portfolio managers purchase securities with the possibility of selling themquickly (typically within 30 days or less). This is done in an attempt to take advantage ofpredictionsofimpendingbriefpriceswingsbasedonanalysis.


Utilizingatradingstrategycreatesthepotentialforsuddenlossesiftheanticipatedpriceswingdoesnotmaterialize.Moreover,underthosecircumstances,SASortheportfoliomanagermusteithertakealong-term position in a security thatwas designed to be a short-term purchase or take a realized loss. Inaddition,becausethisstrategyinvolvesmorefrequenttradingthandoesa longer-termstrategy,therecouldbearesultantincreaseinbrokerageandothertransaction-relatedcosts,aswellaslessfavorabletaxtreatmentofshort-termcapitalgains.

SHORTSELLING

Portfoliomanagersmay borrow, or recommend to borrow, shares of a stock for your portfolio fromsomeonewhoownsthestockonapromisetoreplacethesharesonafuturedateatacertainprice.Thoseborrowedsharesarethensold.Subsequently,themanagerbuysthesamestockandreturnsthesharestotheoriginalownertoclosetheopenshortposition.Portfoliomanagersengageinshortsellingbasedonanopinionthatthestockwillgodowninpriceaftertheshareshavebeenborrowed.Ifthemanageriscorrectandthestockpricehasgonedownsincetheshareswereborrowedfromtheoriginalowner,theclientaccountrealizestheprofit.

Shortsellingresultsinsomeuniquerisks:

1. Lossescanbeinfinite.Ashortsaleloseswhenthestockpricerises,andastockisnotlimited(atleast,theoretically)inhowhighitcango.Forexample,ifyoushort100sharesat$50each,hopingtomakeaprofitbutthesharesincreaseto$75pershare,you'dlose$2,500.Ontheotherhand,thepriceofastockcannotfallbelow$0,whichlimitsyourpotentialupside.

2. Short squeezes canwringoutprofits.Asstockprices increase,shortseller lossesalso increaseassellersrushtobuythestocktocovertheirpositions.This increase indemand, inturn,canfurtherdrivethepriceofthestockup.

3. Timing.Evenifaportfoliomanageriscorrectindeterminingthatthepriceofastockwilldecline,themanagerrunstheriskofincorrectlydeterminingwhenthedeclinewilltakeplace,i.e.,beingrighttoosoon.Althoughacompanymaybeovervalued,itcouldconceivablytakesometimeforthepricetocomedown;duringwhichtimeyouarevulnerabletomargincalls,opportunitycosts,etc.

4. Inflation.Historyhasshownthatoverthelongterm,moststocksappreciate.Evenifacompanybarelyimprovesovertime,inflationshoulddriveitssharepriceupsomewhat.Infact,shortsellingmaynotbeappropriateintimesofinflationforthatveryreason,aspricesmayadjustupwardsregardlessofthevalueoftheunderlyingcompany.

STRATEGICVSTACTICAL

Portfoliomanagersmayhavetheirownuniquestrategiesthattheyemploywhenmanagingportfolios.Twocommonassetmanagementapproachesare“strategic”and“tactical.”

Strategic: A strategy that sets specific asset class allocations and then, periodically, rebalances themanagedportfoliotomaintaintheoriginalassetclassallocation.Thereistypicallynochangeintheassetsclassesutilizedinthistypeofstrategy.

Tactical:A strategy that takes amore active trading approach to investing andmakes tacticalmarkettradesinportfoliosinanattempttotakeadvantageofperceivedmarketopportunities.Thiscould mean a complete replacement of a poor performing asset class to an assets classexpectedtoperformbetter.


Priortoinvestingwithanyportfoliomanager,youareencouragedtoaskquestionsandmakesureyouunderstandtheinvestmentstrategiesrecommendedforyoubyyourRIAfirmand/orFinancialAdvisor.

RISKOFLOSS

GeneralRisk

Investinginsecuritiesinvolvesriskoflossthatyou,astheinvestor,shouldbepreparedtobear.SASdoesnotrepresentorguaranteethatitcanpredictfutureresults,successfullyidentifymarkettopsorbottoms,or insulateClientportfoliosand investments fromlosses.Thepricesof,andthe incomegeneratedby,equitiesandothersecuritiesheldinyourportfoliomaydeclineinresponsetocertaineventstakingplacearound theworld, including thosedirectly involving the issuerswhose securities youown. Conditionsaffecting the general economy; overall market changes; local, regional or global political, social oreconomic instability; governmental or governmental agency responses to economic conditions; andcurrency,interestrateandcommoditypricefluctuationsareallriskfactorsthatcanaffectthevaluationofyourinvestments.

SAScannotofferanyguaranteesorpromisesthatyourfinancialgoalsandobjectiveswillbemet.Pastperformance is innowayan indicationof futureperformance. The valueof your investmentswill besubject to a variety of factors, such as the liquidity and volatility of the securitiesmarkets. Portfoliotransactionsmaygiverisetotaxliability,forwhichyouareresponsible.

AssetAllocationRisk

Assetallocationriskistheriskthatyourportfoliomaybeallocatedtoanassetclassthatunderperformsotherassetclasses.Forexample,fixed-incomesecuritiesmayunderperformequities.Accordingly,assetallocation risk will be influenced by the allocation of your portfolio among equities, fixed income,alternativeandmoneymarketsecurities.

InvestmentandMarketRisk

Securitiespurchasedinyouraccount(s)aresubjecttoinvestmentrisk,includingthepossiblelossoftheentireprincipalamountinvested.Arecommendationtoinvestinsecuritiesandotherinstrumentsmayalsoinvolvemarketrisk,whichistheriskthatthevalueofthesepositions,likeotherinvestments,maymove up or down, sometimes rapidly and unpredictably due to adverse market conditions and notnecessarilybasedon the individualmeritsof the investment. Investmentholdings in youraccount, atanypoint in time,maybeworth less than theoriginal investment,evenafter taking intoaccountanyreinvestmentofdividends.

InterestRateRisk.Fluctuationsininterestratesmaycausethevalueofinvestmentstofluctuate.Forexample,thevalueoffixedincomeinstrumentswillchangeinverselywithchangesininterestrates.As interest rates rise, themarket valueof fixed income instruments tends to decrease.Conversely,asinterestratesfall,themarketvalueoffixedincomeinstrumentstendstoincrease.Thisriskwillbegreaterforlong-termsecuritiesthanforshort-termsecurities.

CounterpartyRisk.Certainassetswillbeexposedtothecreditriskofthecounterpartieswhenengaging in exchange-tradedoroff-exchange transactions as such counterparties could fail todeliverorotherwisedefaulton theirobligations.Theremayalsobea riskof lossofassetsondepositwithorinthecustodyofabrokerintheeventofthebroker’sbankruptcy,thebankruptcyof any clearing broker through which the broker executes and clears transactions, or thebankruptcyofanexchangeclearinghouse.


LiquidityRisk.Liquidityistheabilitytoreadilyconvertaninvestmentintocash.Generally,assetsaremoreliquidifmanytradersareinterestedinastandardizedproduct.Wheninvestinginilliquidsecurities,itmaynotbepossibletosellsuchsecuritiesatthemostopportunetimesoratpricesapproximatingthevalueatwhichtheywerepurchased.

ExchangeTradedFunds(ETFs)

WhileinvestinginETFshassimilarrisksasinvestinginindividualequities,ETFstypicallyinvestinadiversegroup of securities. The level of diversification varies by ETF. While ETFs reduce the effects ofconcentrationriskascomparedtoinvestinginasinglesecurity,certainETFsaresusceptibletoindustry,commodityorcountryrisk.InvestinginadiverseselectionofETFsmayhelptoreducethisrisk.AnotherimportantfactortoconsiderwithETFsisthattheportfolioofsecuritiesinwhichtheyinvestaretypicallynotactivelymanaged.LeveragedandInverseETFsbearuniquerisksthatinvestorswhowishtotradeinthese should understand. It’s important to read the appropriate prospectus or disclosure documentspecifictotheleveragedorinverseETFbeforeinvesting.

FixedIncomeInvestments

One of themost important risks associatedwith fixed-income securities is interest rate risk, the riskencounteredintherelationshipbetweenbondpricesandinterestrates.Thepriceofabondwillchangeintheoppositedirectionofmovements inprevailing interestrates.Forexample,as interestratesrise,bondpriceswillgenerallyfall.Ifaninvestorhastosellabondpriortothematuritydate,anincreaseininterestratescouldmeanthatthebondholderwillexperienceacapitalloss(i.e.,sellingthebondbelowitsoriginalpurchaseprice).

Reinvestmentriskistheriskthattheinterestrateatwhichtheinterimcashflowscanbereinvestedwilldeclineandthusreinvestmentswillreceivealowerinterestrate.Reinvestmentriskisgreaterforlongerholdingperiods.

Defaultriskiscommonlyreferredtoas“creditrisk”andisbasedontheprobabilitythattheissuerofthedebt obligation may default. Default risk is rated by quality ratings assigned by commercial ratingcompanies.

Callriskistheriskrelatedtocallprovisionsondebtobligations.Youshouldbeawareoffourrisksassociatedwithcallprovisions.

1) Thecashflowpatternsofcallablebondsarenotknownwithcertainty.

2) Sincetheissuerwilltypicallyexercisetheirrighttocallthebondswheninterestrateshavedropped,youmaybeexposedtoreinvestmentrisk.Youwouldhavetoreinvesttheproceedsafterthebondiscalledatrelativelylowerinterestrates.

3) Thepotentialforcapitalappreciationofacallablebondisreducedrelativetothatofanon-callablebond,becauseitspricemaynotrisemuchabovethepriceatwhichtheissuercancalltheissue.

4) Iftheissueispurchasedatapremium,youmaylosethedifferencebetweenthepurchasepriceandcallprice.

Inflationriskarisesbecausethevalueofthecashflowsbeingreceivedfromadebtobligationmayactuallylosepurchasingpoweroverthecourseoftimeduetotheeffectsofinflation.


Liquidityriskdependsontheeasewithwhichanassetcanbesoldatornearitscurrentvalue.Thebestindicatortomeasureanissue’sliquidityisthesizeofthespreadbetweenthebidpriceandtheaskpricequotedbyadealer.Awiderspreadontheassetindicatesagreaterliquidityrisk.Ifyouplanonholdingabonduntilitsmaturitydate,liquidityriskislessofaconcern.

Finally,exchangeraterisk,whichisencounteredinnon-dollardenominatedbondsorbondswhosepaymentsoccurinaforeigncurrency,hasunknownU.S.currencycashflows.Thedollarcashflowsaredependentontheexchangerateatthetimethepaymentsarereceived.Forexample,considerabondwhosecouponpaymentispaidoutinJapaneseyen.IftheyendepreciatesrelativetotheU.S.dollar,fewernetdollarswillbereceived.Conversely,iftheyenshouldappreciaterelativetotheU.S.dollar,theinvestorwillbenefitbyreceivingmorenetdollars.

AlternativeorIlliquidInvestments

Someportfoliomanagersandsomestrategiesutilize“illiquidinvestments.”Thesearesecuritiesandotherfinancialinstrumentsthatarenotactivelyorwidelytradedandgenerallyhavealimitedornon-existentsecondarymarket(i.e.,non-tradedREITs,HedgeFunds,ManagedFuturesFunds,BusinessDevelopmentCompaniesandother“Reg-D”unregisteredofferings).Asaresultofthelimitedornon-existentsecondarymarket,itcanbedifficult,ifnotsometimesimpossible,forSASorathird-partyportfoliomanagertodisposeofsuchinvestmentsrapidlyand/oratareasonablevaluewhenyoumakealiquidationorwithdrawalrequest.Thisisparticularlytrueduringtimesofadversemarketconditions.Adversemarketconditionshave,inthepast,leadtoa“liquiditycrisis”(i.e.,theinabilitytosellmanysecuritiesatexpectedvalues).NeitherSASnoranyportfoliomanagermakeanyassuranceorguaranteethatfuturemarketconditionswillnotresultinsimilarliquidityissues.InvestorsinIlliquidInvestmentsshouldcarefullyconsidertheuniquerisksthesetypesofsecuritiespresentbeforemakinganyinvestmentdecisions.Affiliatedorganizations,incertaininstances,aresometimescompensatedforthedistributionorsalesoftheseinvestmentvehicles,whichcreatesaconflictofinterestforSAS.Additionally,affiliatedorganizationsmaybetheissuerofsuchIlliquidInvestmentsandmaybeinvolvedinthevaluationofsuchinvestments.ThispresentsaconflictofinterestforSASwhensuchinvestmentsareheldwithinanadvisoryaccountandbilledon.

InternationalInvesting

Investingintheglobalmarketcanassistwithdiversificationofaportfoliobutitisimportanttoconsidersomeoftheuniqueriskswithsuchastrategy.Eachcountryhasuniquerulesandregulationscoveringcorporationsandtheirstockmarketswhichoffer investorsvaryingdegreesofprotection.Additionally,investinginforeignmarketssubjectsyourinvestmenttocurrencyrisk.

Additionalriskinformationmaybeavailableinaproduct’sprospectus,offeringcircularorontheproductsponsor’swebsite.Additionalproductspecificriskinformationisavailablethroughtheinvestorsectionofwww.sec.gov.Pleasereviewtheseresourcesformoredetailedinformationontherisksrelatedtothespecificinvestmentsinyourportfolio.


ITEM9-DISCIPLINARYINFORMATION

Registered Investment Advisers are required to disclose all material facts regarding any legal ordisciplinaryeventsthatwouldbematerialtoClient’sevaluationoftheRegisteredInvestmentAdviserortheintegrityofitsmanagement.NeitherSAS,itsowners,noritsmanagementhavebeeninvolvedinanylegalordisciplinaryeventsthatwouldhaveamaterialimpactonaClient’sevaluationofSAS’sadvisorybusinessortheintegrityofmanagement.

YourFinancialAdvisorshouldprovide,alongwiththisbrochure,asupplementthatdescribeshisorhereducation,businessexperience,professionaldesignationsandmateriallegalordisciplinaryhistory,ifany.


ITEM10-OTHERFINANCIALINDUSTRYACTIVITIESANDAFFILIATIONSGENERALDESCRIPTIONOFOWNERSHIPSTRUCTURE

SAS iswholly ownedby SAS Capital Partners, LLC. 25%of SAS Capital Partners is ownedbyArgentusHoldings,LLC,whichiscontrolledbyLarryAndersandMichaelLester,SAS’sPresident. 75%ofSASCapitalPartners is owned by SCA Holdings, LLC. Ronald Robertson, Tim Feehan, and Aequitas CapitalOpportunitiesFund,LP,arethecontrollingownersofSCAHoldingsLLC.,whichexiststoholdownershipinterestsinoneormoreentitiesprovidingservicestoindependentregisteredinvestmentadvisers,andislocatedinGigHarbor,WA.GaryPriceisanon-controllingownerofSCAHoldingsLLC.

Aequitas Management, through its subsidiaries, has indirect ownership in SAS and several of SAS’saffiliateslistedonSAS’sADV1filingwiththeSEC,whichcanbefoundatwww.advisorinfo.sec.gov.RonRobertsonandGaryPrice,whohaveindirectownershipinSAS,alsohaveanownershipinterestinandarecontrolpersonsforGenesisCapitalPartners(aregisteredinvestmentadvisor)andRPCapital(aregisteredbroker/dealer).

TimFeehan,whohasindirectownershipinSAS,alsohasaminorownershipstakeinAlternativeCapitalAdvisors,LLC.

BROKER-DEALERREGISTRATION

CertainmembersofSAS’smanagementteam,aswellasseveralofitsaffiliate,ArgentusAdvisors’FinancialAdvisors are also registered representatives of broker-dealers. As registered representatives, thesepersons will sometimes receive separate, yet customary, commission compensation and/or trailingcommissionsresultingfromthesaleofsecuritiesproductsandservicestheymayrecommend.

Transactions in securities, such as fixed income securities, non-traded real estate investment trusts(REITs),preferred stock, andprivateplacements, are sometimesexecutedbySAS’sassociatedbroker-dealer,RPCapital,onbehalfofaRIAfirm’sadvisoryclients.RPCapitalchargescommissionsormarkupsor receives other compensation for effecting these securities transactions. This compensation is inadditiontothefeesnotedabove.ManagementpersonsandemployeesofSASthatarealsolicensedasregisteredrepresentativesofRPCapitalreceiveaportionofthiscompensation.Clientsshouldbeawarethat this creates an incentive for SAS to recommend investment products based on the receipt ofadditionalcompensationtoRPCapital,ratherthantheneedsoftheclientorthequalityoftheinvestment,whichcreatesaconflictofinterest.SASendeavorsatalltimestoputtheinterestofitsclientsfirstaspartofourfiduciarydutyasaregisteredinvestmentadviser.SASreceiveswrittenconsentfromeachclientortheclient’sauthorized representativewheresuch transactionsareproposed.Additionally,SASandRPCapitalprovidesuchclientswithawrittenconfirmation foreachsuch transaction,prior tosettlementwhichincludes,butisnotlimitedto,adescriptionofthenatureofthetransaction,thedatethetransactiontookplaceandanyremunerationreceivedbyeitherRPCapitalorSASforthetransactions.SASandRPCapitalprovidesuchclientsortheclient’sauthorizedrepresentativeanannualreportthatsummarizesallsuchtransactionsandthetotalremunerationreceivefortheyear. Finally,SASandRPCapitalremindsuchclientsthattheymayrevoketheirconsent,inwriting,atanytime. ClientsarenotunderanyobligationtoengageRPCapitalwhenconsideringimplementationofadvisoryrecommendations.Theimplementationofanyorallrecommendationsissolelyatthediscretionoftheclient.

Additionally and as noted in Item 4 above, SAS provides services to certainmutual fund complexes.Amongtheservicesprovidedaretradingservicesinwhichsecuritiestradesaredirectedtoabroker-dealerwhichthensharesthecommissiongeneratedwithRPCapital,theaffiliatedbroker-dealerofSAS. This


arrangementpresentsaconflictofinterest.AlistoffundsthatarecurrentlyunderthisarrangementareprovidedinItem4ofthisbrochure.

RIAFinancialAdvisorsprovidinginvestmentadviceonbehalfofSAS,whoareregisteredrepresentativesof a broker-dealer, will sometimes recommend their broker-dealer for brokerage services. Theseindividualsaresubjecttoapplicablerulesthatrestrictthemfromconductingsecuritiestransactionsawayfrom their broker-dealer unless the broker-dealer provides the Financial Advisor with writtenauthorizationtodoso.Therefore,theseindividualsmaybelimitedtoconductingsecuritiestransactionsthroughtheirbroker-dealer. Insomecasessuchbroker-dealer’schargehigher transaction feesand/orcustodialfeesthanotherbroker-dealerschargeforthesameservices.Also,iftransactionsareexecutedthroughthesebroker-dealers,theseFinancialAdvisors(intheircapacityasregisteredrepresentativesofthe brokerage firm) will sometimes earn commission-based compensation as a result of placing therecommended securities transactions through their broker-dealer. This practice presents a conflict ofinterestbecausetheFinancialAdvisorhasanincentivetoeffecttransactionsforthepurposeofgeneratingacommissionratherthansolelybasedonyourbestinterest.Additionally,thispracticecanprecludeSASfromachievingbestexecutionwithinsuchanadvisoryaccount. Youmayutilizethebroker-dealerofyourchoice,however,ifyouwantyourFinancialAdvisortobetheFinancialAdvisorofrecordforyouraccountandyoudonotchoosethebroker-dealeryourFinancialAdvisorisaRegisteredRepresentativeof,wemaynotbeabletoacceptyouraccount.

INSURANCEAGENTSANDAGENCIES

CertainmembersofSAS’smanagementteam,aswellasseveralofitsaffiliateArgentusAdvisors’FinancialAdvisorsarealsolicensedinsuranceagentsand/oroperateinsuranceagenciesunaffiliatedwithSAS.Asinsuranceagentsandagencies,thesepersonsreceiveseparate,yetcustomary,commissioncompensationand/or trailing commissions resulting from the sale of insurance products and services they mayrecommend.

Currently,theinsuranceagenciesoperatedbyouraffiliate,ArgentusAdvisors’FinancialAdvisorsinclude:KitsmanInvestmentManagement,WealthInnovations,andLeveragedSolutions,LLC.

GENERALDISCLOSUREREGARDINGREGISTEREDREPRESENTATIVESANDINSURANCEAGENTS

Commissionbasedsalesmayincentivizeapersontorecommendacommissionableproductbasedonthecompensationreceived,ratherthanbasedonyourneeds.Offeringsuchproductsandservicestoadvisoryclientsmaypresentaconflictofinterest.Youshouldbeawareofthisconflictandshouldinquirefurtherifnecessary.

EachFinancialAdvisorisrequiredtoprovideyouthisdisclosuredocumentalongwithapersonaldisclosuredocumentwhich describeswhether they are registered representatives or insurance agents, operateinsuranceagenciesand/orotheroutsidebusinessactivitiestheymaybeinvolvedinwhichmaypresentaconflict of interest. Providing these disclosure documents to you is an important requirement formitigatingtheseinherentconflicts.

STRATEGICCAPITALALTERNATIVES,LLC.

SCAHoldings,LLCownsacontrollinginterestinSASCapitalPartners,LLC.SASCapitalPartners,LLCowns100%of SAS. SCAHoldings, LLC also owns Strategic Capital Alternatives, LLC (SCA), an SEC registeredinvestmentadviser.OurpartnershipwithSCAisastrategicone,inthat,throughSASweprovideSCAastateoftheartplatformthroughwhichSCAisabletooffer itsadvisoryservices.NotallarrangementscreatedthroughourrelationshipwithSCApresentthesamerevenuestreamtothecompany,therefore,


aconflictcouldexistasweofferadvisoryservicestoourcustomers.TheRIAfirmsofferingservicesonSAS’splatformdonotreceiveanymoreorlesscompensationbasedonwhatadvisoryservicesorTPMMsare made available to their clients. This fact, along with the requirement to provide this disclosurebrochuretoyou,describingthearrangementwehavewithSCAareamongthemethodsweusetohelpmitigatethisconflict.SASandSCAsharesomeofthesameinvestmentpolicycommitteemembersandmanyof thesameemployees.Wemayoccasionally tradethesameorsimilarsecurities inourclients’portfoliosthataretradedbySCAandGC intheirclients’portfolios.Whenthisoccurs,ourclientsmayreceiveabetterorworsepriceorexecutionthanSCAand/orGCclientsdependingontheorderoftradeexecution,thetypeofsecuritytraded,andthebroker-dealerused. SCAutilizestheservicesofotherthird-partyinvestmentadvisers,whoprovidespecificsecurityrecommendationstoSCA,whichareultimatelyincorporatedintotheSCAportfoliomanagementofferingsandaregenerallyusedtomanagetheequityportionofclientaccounts.AsofthedateofthisFirmBrochure,SCAhadsub-advisoryrelationshipswithfourinvestmentadvisersforthispurpose:ChiltonCapitalManagementLLC;GraniteInvestmentPartners,LLC; Berkshire Asset Management, LLC; and Bridge City Capital, LLC. You can find more detailedinformationaboutSCAatwww.advisorinfo.sec.gov.

ALTERNATIVECAPITALADVISORS,LLC.

ACA is majority owned by Christopher Lagrego and is minority owned by Andrew Formato, GilbertDunhamandSAS’sCEO,TimFeehan.ACAperformsduediligenceonandrecommendstheservicesofthird party investment adviserswhoprimarily recommend equity and debt investments. Additionally,ACAand/oraffiliatesofACAsponsorandserveastheinvestmentadvisertoprivateinvestmentfundsthatoperateasfundsoffunds(i.e.,ACA-MasterSelectSeriesTrust).Theseprivate investmentfundsareormayberecommendedtoSAS’sclientsaspartoftheAlternativeInvestmentsportionoftheirportfolio.ClientsinvestedinACA’sprivateinvestmentfundswillpaymanagementfeesandmaypayperformance-basedfees,ifcertainconditionsaremet.ACA’sfeesareseparateandindependentofanyfeesthatSASmaychargetoclients.Consequently,clientsinvestedintheseprivateinvestmentfundswillpaythreeormorelayersofmanagementfees,includingonefeepaidtoSAS,onefeepaidtoACA,andonefeepaidtounderlying investment advisers or investment issuers. SAS and ACA have entered into a referralagreement in which SAS compensates ACA for business and clients ACA refers to the SAS platform.Additionally, ACA compensates SAS for business and clients SAS refers to the ACA portal. Thisarrangementcreatesaconflictofinterestwhichinvestorsshouldbeawareof,sincebothSASandACAareincentivizedtorecommendeachother’sservices.ClientsshouldalsobeawarethataconflictofinterestexistswhenSASmakesavailabletheproductsorservicesofACAduetoTimFeehan’sminorityownership.YoucanfindmoredetailedinformationaboutACAatwww.advisorinfo.sec.gov.

GENESISCAPITAL,LLC.,&GENESISGENERALPARTNERS,LLC.

GaryPriceandRonRobertsonarealsomanagingmembersofGenesisCapital LLC ("GC") andGenesisGeneralPartnerLLC("GGP"),alsoaffiliatedentitiesofSAS.GCisaSECregisteredinvestmentadviserwhichprovides advisory services to private investment funds and registered investment companies. PrivateinvestmentfundsmanagedbyGCmayhavepreviouslybeenrecommendedtoclientsbutarecurrentlyintheprocessof liquidation.GGPservesas thegeneralpartnerormanagingmemberofoneormoreoftheseprivateinvestmentfunds.Clientsinvestedinprivateinvestmentfundswillpaymanagementfeesandmaypayperformance-basedfees, ifcertainconditionsaremet, thatare inadditiontoSAS’s fees.Consequently, clients invested in these private investment funds will pay two or more layers ofmanagementfees,includingonefeepaidtoSASandonefeepaidtoGC.


GCisalsotheinvestmentadvisertotheGraniteHarborAlternativeFundandGraniteHarborTacticalFund(the“Funds”),whichareseriesoftheNorthernLightsFundTrust.SASmaymakeinvestinginthefundsavailableonitsadvisoryplatform.GCreceivesamanagementfeeastheinvestmentmanagertotheFundsintheamountof1.95%fortheGraniteHarborAlternativeandTacticalofeachfund’saveragedailynetassetvalue.NeitherGCnorSASisaffiliatedwithNorthernLightsFundTrust.InvestmentsofthesetypesmayinvolvecertainadditionaldegreesofriskandshouldonlyberecommendedbyanRIAwhenconsistentwith theclient's stated investmentobjectives, tolerance for risk, liquidity,andsuitability.AconflictofinterestiscreatedwhenSASmakesthesemutualfundsavailableonitsadvisoryplatform.ClientschoosingtotoinvestinmutualfundsaffiliatedwithGCshouldrefertothemutualfund’sprospectusforfulldetailsregarding the mutual fund’s services and fees. You can find more detailed information about GC atwww.advisorinfo.sec.gov.

AEQUITASCAPITALOPPORTUNITIESFUND,LP.

AsanownerofSCAHoldingsLLC,AequitasCapitalOpportunitiesFund,LP("ACOF"),indirectlyreceivesashareofSAS'snetannualrevenue.ACOFand/oritsaffiliatesmayreferprospectiveclientstoSASandindoingso,aconflictofinterestexistsassuchreferralsmayresultinincreasedrevenuetoACOF,whichinturn,maybesharedwithACOF’saffiliates.SASaddressesthisconflictofinterestbyprovidingdisclosureoftheconflictandremindingprospectiveclientsthattheyhaveachoiceinwhethertheyengageSAS'sadvisory services or not. Additionally, SASmay report on various private securities, including but notlimitedtopromissorynotes,issuedand/orsponsoredbyACOFand/oritsaffiliates("AequitasProducts").ConflictsofinterestarisewhenSASreportsonAequitasProductsandreceivesafeeforsuchreportingasACOF and/or its affiliates may receive various monetary and non-monetary benefits when AequitasProducts are purchased. Additionally, RP Capital, an associated entity of SAS may also receivecompensationintheformofcommissions,transactionfees,and/orsolicitation/finders'feesfromACOFand/or its affiliates. SAS addresses these conflicts of interest by disclosing their existence, remindingclientsthattheyarenotobligatedtopurchasesuchinvestmentproducts.Furthermore,theFundswhicharemanagedbyGC,whichmayberecommendedtoSAS'sclients,mayinvest inAequitasProducts.Asnotedabove,aconflictofinterestalsoexistswhenSASmakessuchFundsavailableonitsplatform.

ARGENTUSADVISORS,LLC.

ArgentusAdvisors,LLC.,afirmregisteredwiththeSECasaninvestmentadviser,isa“relatedperson”ofSASduetothefactthatbothcompaniesareownedbySASCapitalPartners,LLC. ArgentusAdvisors’maininvestment advisorybusiness is tomanage the investmentportfoliosof individuals, corporations, andotherbusinessesthroughitsinvestmentadviserrepresentatives(FinancialAdvisors)andthroughtheuseof TPMMs.ArgentusAdvisor’s investment advisory services are tailored to the individual needs of itsclientsandarebasedontheclient’sgoals,investmentobjectives,timehorizonandrisktolerance.Inthiscapacity,ArgentusAdvisorsanditsFinancialAdvisorsactasfiduciariestotheclient.

ArgentusAdvisor’sFinancialAdvisorsprovidecontinuousinvestmentadvicetotheirclientsregardingtheinvestmentoffundsbasedontheindividualneedsofeachclient.TheFinancialAdvisorwilldiscussyourparticularfinancialsituationandwillhelpyouestablishyourfinancialgoals,investmentobjectives,timehorizons and risk tolerance. The Financial Advisor also reviews and discusses with you, your priorinvestmentexperience,allinanefforttoproperlyadviseyoutoensurethattheadvisoryservicesprovidedareappropriate.


RPCAPITAL,LLC.

GaryPriceistheManagingMemberandCEO,andRonRobertsonisaMemberofRPCapital,LLC,aFINRAmember broker-dealer selling tax shelters or limitedpartnerships in primary distributions andprivateplacement securities. RP Capital also offers and effects transactions in corporate debt securities,U.S.government securities,municipal securities, andmortgage securities. RP Capital, LLC is an associatedentityof SAS, and, to theextent it engages inbusinessdealingswith SAS, conflictsof interestwill bepresentandwillneedtobemanagedbySAS.SuchbusinessdealingscouldbeintheformofRPCapital,LLCbeingusedtotransactcorporateandmunicipalbondtradesforSAS’sadvisoryclients.RPCapital,LLCearnscompensation forproviding theseservices, suchasmarkups/markdowns fordebt securitiesandcommissions for private placements. Markups or markdowns on corporate and municipal bondtransactionsforSASclientsaretypicallyundertwopoints.ManagementpersonsandemployeesofSASthat are licensed as registered representatives of RP Capital, LLC may receive a portion of thecompensationreceivedbyRPCapital,LLCforexecutingsecuritiestransactionsonbehalfofSASadvisoryclients.SAShasaheightenedfiduciarydutytoitsclientswheniteffectssecuritiestransactionsonbehalfof its clientswith or through its affiliates or associated entities. As a result, SAS and RP Capital haveimplementedpoliciesandproceduresthataddresstheseconflictsof interestandendeavorstoensurethatitachievesbestexecutionforallclienttransactions.TotheextentthatSASengagesinprincipaloragencycrosstransactionswithorthroughRPCapitalonbehalfofitsadvisoryclients,suchtransactionswillbeconsummatedinaccordancewithRule206(3)oftheAdvisersActand,asapplicable.RPCapitalreceivesremunerationfromACOFwhenitreferscustomerstoACOFandsuchreferralspurchaseACOFissuedpromissorynotesorother instruments issuedbyACOF.Thisarrangementpresentsaconflictofinterest,asRPCapitalisincentivizedtomakesuchreferrals.

PRIVATEADVISORYGROUP,LLC.

PrivateAdvisoryGroup,LLC.(PAG),isanSECregisteredinvestmentadviserwhichisindirectlyownedbyAequitasManagement,LLC.,andisanassociatedentityofSAS.PAGisalsoaclientofSAS.Asaresultoftheserelationships,aconflictofinterestsexistsasSASmayhaveanincentivetofavorPrivateAdvisoryGroupLLCoveritsotherclientaccounts.SASaddressesthispotentialconflictofinterestbyendeavoringtotreatallclientsequallyandfairlyandbydisclosingtheexistenceofthisconflictofinterest.

ASPENGROVEEQUITYSOLUTIONS,LLC.

Aequitas Capital Opportunities Fund, LP owns 60% of AspenGrove Equity Solutions, LLC., anOregonlimited liability company. Gary Price, Ronald Robertson, and Tim Feehan are alsominority owners ofAspen Grove Equity Solutions, LLC. This makes Aspen Grove an associated entity of SAS due to thecommoncontrollingownershipofAequitasCapitalOpportunitiesFund,LP.AspenGrove,LLCowns68%ofPrivateAdvisoryGroupLLC,aSEC registered investmentadviser,which isalsoaclientofSAS.Asaresultoftheserelationships,aconflictofinterestsexistsasSASmayhaveanincentivetofavorPrivateAdvisoryGroup LLC over its other client accounts. SAS addresses this potential conflict of interest byendeavoringtotreatallclientsequallyandfairlyandbydisclosingtheexistenceofthisconflictofinterest.


W.E.DONOGHUE&CO.,INCORPORATED(WEDCO)

W.E.Donoghue&Co.,Incorporated(WEDCO)isanSECRegisteredInvestmentAdvisor. WEDCOisnotanaffiliateofSAS. WEDCOservesastheInvestmentAdvisortothePowerIncomeFunds,aregisteredmutualfund. SAS has a business relationship with WEDCO, in that SAS provides trading and back-officeadministrative services toWEDCO for its Power Income Funds and receives compensation for theseservices,someofwhichisbasedonthevalueofassetsinthePowerIncomeFunds.

Tomitigatetheconflictsofinterestpresentedbythisarrangement,SASdoesnotofferintroducingRIAfirmsortheirFinancialAdvisorsanyadditionalcompensation,suchasbonusesorhigherpayrates,forrecommendinginvestmentsinmutualfundsforwhichSAShasamaterialfinancialinterest.Inaddition,SASprovidesthisdisclosurebrochuretoalladvisoryclients,priortooratthetimeof,enteringintoanadvisoryagreement.

OTHERINVESTMENTADVISERS

SASprovidesaplatformbywhich introducingRIAfirms(RIAs)canrecommendandselectotherThird-PartyMoneyManagers(referredtoasTPMMsthroughoutthisbrochure)tomanageallorapartofyourportfolio.TheseTPMMsassessa“programfee”fortheirservices,forwhichSAScollectsandsharesin.Thisarrangementmaypresentaconflictofinterest,dependingonthefeecollectedbySAS.Inordertohelpmitigatethisconflict,SAS institutesseveralpolicies.First,SAShasadocumentedandmeasurableprocessforvettingTPMMsbeforetheycanbeaddedtotheplatformandforongoingreviewtodetermineiftheyshouldremainontheplatform.TheamountofcompensationreceivedbySASisnotapartofthedecisionmakingprocess. Additionally,RIA’sdonotreceiveanymoreorlesscompensationbasedonwhatTPMMstheyrecommendorselect. SASdoesnotcondoneorpromoteanyparticularTPMMoveranother.Last,SASrequiresthedeliveryofthisdisclosuredocumenttoalladvisoryclients,priortooratthetimetheyenterintoanadvisoryagreementwiththefirmortheRIAfirm.

GENERALSTATEMENTONCONFLICTSPRESENTEDBYAFFILIATESClientsshouldbeawarethatthereceiptofadditionalcompensationbySASanditsmanagementpersonsoremployeescreatesaconflictofinterestthatmayimpairtheobjectivityofourfirmandtheseindividualswhenofferingadvisoryservices.SASendeavorsatalltimestoputtheinterestofitsclientsfirst.Aspartofourfiduciarydutyasaregisteredinvestmentadviser;wetakethefollowingstepstoaddresstheconflictsofinterestnotedabove:• wedisclosetoclientstheexistenceofallmaterialconflictsofinterest,includingthepotentialforourfirmandouremployeestoearncompensationfromadvisoryclientsinadditiontoourfirm'sadvisoryfees;

• wedisclosetoclientsthattheyarenotobligatedtopurchaserecommendedinvestmentproductsfromouremployeesoraffiliatedcompanies;

• wecollect,maintainanddocumentaccurate,completeandrelevantclientbackgroundinformation,includingtheclient’sfinancialgoals,objectivesandrisktoleranceforthoseclientscontracteddirectlywithSAS;

• werequirethatouremployeesseekpriorapprovalofanyoutsideemploymentactivitysothatwemayensurethatanyconflictsofinterestsinsuchactivitiesareproperlyaddressed;

• weperiodicallymonitortheseoutsideemploymentactivitiestoverifythatanyconflictsofinterestcontinuetobeproperlyaddressedbyourfirm;

• weeducateouremployeesregardingtheresponsibilitiesofafiduciary,includingtheneedforhavingareasonableandindependentbasisfortheinvestmentadviceprovidedtoclients;and

• wemonitorthepersonaltradingoftheemployeeswe’vedeemed“accesspersons”(asthattermisdefinedundertheAdvisersAct)soastoreasonablyensurethepreventionofabusivetradingpracticessuchasfront-runningandinsidertrading.


ITEM11-CODEOFETHICS,PARTICIPATIONORINTERESTINCLIENTTRANSACTIONSANDPERSONALTRADINGCODEOFETHICS

Asafiduciary,SAShasestablishedaCodeofEthicsunderwhichallofthefirm’semployeesandFinancialAdvisorsmustcomply.SASacceptsitsfiduciaryresponsibilityto(1)placetheinterestsofitsclientsfirstatalltimes,(2)actwiththeutmostgoodfaith(3)providefullandfairdisclosureofallmaterialfactsandconflictsofinteresttoclients,and(4)conductallpersonalsecuritiestransactionsconsistentwithitsCodeofEthics. SAS’sassociatedpersonsareheldtoaprofessionalstandardthatrequirestheyavoidanyabuseofanindividual'spositionoftrustandresponsibility,nottakeinappropriateadvantageoftheirpositions;complywithapplicablesecuritieslawsandregulations;andmaintainconfidentialityofclient'sfinancialcircumstances.YoumayrequestafullcopyofourCodeofEthicsfromSAS.

PERSONALTRADING

Fromtimetotime,associatedpersons,will invest in thesamesecurities thataregoingtobe,orhavealready been, bought or sold for clients’ accounts. Transactions for the associated persons could beeffectedatoraboutthesametimetheyareeffectedforaclient’saccount.Becauseofthis,aconflictofinterestcouldariseinthatitispossiblefortheassociatedpersontoplacetheirorderaheadofaclient’sorder.WhileSASdoesallowitsassociatedpersonstoinvestinthesesecurities,itdoesnotalloworderstobeplacedaheadofclients. Placingtheclient’sorderaheadofanyassociatedperson’sdoesnotensureabetterprice,however,itdoesensurethattheclient’stradewilloccuratorbeforethatoftheassociatedperson.Wheneverpossible,SASwillaggregatethetradessothatallthepositionsarefilledatthesameprice.

ADVISINGINVESTMENTCOMPANIES

Asmentioned in Item5and Item10ofthisbrochure,SASdoesadviseandprovideservicestoseveralregisteredmutualfunds. Additionally,tradesforthesefundsareoftendirectedtoabroker/dealer,whichinturnsharesthatrevenuewithourassociatedbroker/dealer,RPCapital.Thisisaconflictofinterestinthat it can incentivizeSAS to recommendoneof these funds toa client for thepurposeofadditionalcompensation to RP Capital, rather than to act in the client’s best interest. In order tomitigate thisconflict,RIAsarenotcompensatedanymoreorlessforrecommendingthesefundsoverothermutualfundsavailableintheadvisoryprogram.NeitherArgentusAdvisorsnorSASpromotethesefundstotheRIAsorincentivizethem,inanyway,torecommendthesefundsoverotheravailablefunds.Additionally,SASmaintains apolicy that all clientsmust receive thisdisclosurebrochureat the timeoforprior toenteringintoanadvisoryagreementwiththefirmoranintroducingRIA,toensurethatproperdisclosureisprovided.


ITEM12-BROKERAGEPRACTICESSASconsiders factors suchas speed, reliability, cost,qualityof tradeexecution,and theavailabilityofservicesandproductswhenselectingbroker/dealersorcustodianstoexecuteyourtransactions. Thefeesand commissions that youmay pay for such servicesmay be higher than the fees and commissionsavailable at other broker/dealer or custodian firms. SAS believes the overall benefits and features ofrecommended broker/dealer and/or custodial firms are of sufficient value to warrant the fees andcommissionssuchfirmscharge.

SASmakesvariousbroker/dealersand/orcustodiansavailabletoitsprospectiveRIAfirms.Accountsareopenedandcarriedbythebroker/dealerorcustodianselectedbytheRIAs.SASreservestherightnottoacceptanaccountatitssolediscretion.

From time to time, recommendedbroker/dealersmay refer prospective clients to SAS. Such referralscouldprovidean incentiveforustodirectbusinesstheirway.SASdoesnotpayforsuchreferralsanddoesnotchargesuchreferredclientsanymoreor lessthanwhatwouldbecharged iftheprospectiveclientlearnedofourservicesanyotherway

SASdoesnotreceivewhatisknownas“softdollars”fromanybroker/dealerorcustodian.Thismeansthat SAS does not pay brokerage commissions to obtain research or other products or services frombroker/dealersoraccountcustodians.

Whenpossible,SAS,throughitstradingdesk,willtrytoaggregatethepurchaseorsaleofsecuritiesforvariousclientaccounts.Thiscansometimesprovideforbetterexecutionoftradesmorelevelexecutionacrossclientaccounts.

SASmaypermitdirectedbrokeragearrangementsinwhichyou,theclient,wouldselectthebroker/dealeror custodian to be utilized. This practice is known as “directed brokerage.” If you direct us to use abroker/dealerorcustodianotherthanthosewhichwerecommend,SASmaynotbeabletoachievemostfavorableexecutionandyoumaypaymoreorlessforaccounttransactions.

REGISTEREDREPRESENTATIVES

SomeFinancialAdvisorsarealsoregisteredrepresentativesofunaffiliatedbroker/dealers.ThisfactwillbedisclosedtoyouviatheFinancialAdvisorsADV2B“biobrochure”whichyoushouldreceiveonorbeforeaccountopening.Althoughthebroker/dealerforwhichtheFinancialAdvisorisregisteredisunaffiliatedwithSAS,youraccountmaystillbeheldorclearedthroughthatbroker/dealer.Whenthis is thecase,your Financial Advisor may also be the registered representative of record for your account. As aregisteredrepresentative,yourFinancialAdvisormaybeentitledtoothercompensationsuchas12b-1feesandoraportionoftheticketchargesassessedforadvisoryprograms.Thisarrangementcreatesaconflictofinterestthatyoushouldbeawareof. SASprovidesthisdisclosurebrochureandthisexplanationinordertoinformyouofthisconflictsothatyoucanmakeaninformeddecisionasyouestablishyouradvisoryaccount.


ITEM13-REVIEWOFACCOUNTSYourintroducingRIAfirm,throughtheirFinancialAdvisor,isresponsibletoensurethattherecommendedadvisoryserviceyouaresubscribedtoissuitableforyou.Ouradvisoryofferingsaremanagedtomeetawiderangeofrisktolerances,soindicatinganappropriaterisklevelorrisktoleranceforyouraccountandservices is an important step in the account review process. Upon opening your account on SAS’splatform, your RIA firm will gather pertinent information from you in order to help assess your risktolerance and help establish your investment goals. Subsequently, and at least annually, a FinancialAdvisorfromyourRIAfirmshouldmeetwithyoutore-assessyoursituationandmakesurenothinghaschangedthatwouldrequireanadjustmenttoyourportfoliostrategy.Thisassessment,ataminimum,willincludeareviewofyourestablishedinvestmentobjectivesandfinancialsituation,aswellasaninquiryastowhetheryouwouldliketoincludeanyrestrictionsonmanagementofyouraccount.

Youraccountcustodianwillprovideyouwithaccountstatementsatleastquarterly,whichwillshowyouraccountholdings,securitiesvaluationsandanytradingactivitythatoccurredduringthestatementperiod.Uponrequest,yourFinancialAdvisormayalsoprovidecertainaccountholdings,tradingandperformancereporting.Allsecuritiesvaluationsaredonebyyourcustodianordirectlyfromtheproductsponsor.SASdoesnotprovidevaluationsonsecurities.


ITEM14-CLIENTREFERRALSANDOTHERCOMPENSATION

Fromtimetotime,SASmaypayareferralfeetoapersonortoanotherinvestmentadvisoryfirmforaclientreferralundertheInvestmentAdvisersActof1940,Rule206(4)-3.ThereferringpartymustenterintoaSolicitor’sAgreementwithSASandclientswhoareintroducedunderthisarrangementreceiveaSolicitor’sDisclosureStatement.TheSolicitor’sDisclosureStatementprovidescertaininformationtotheintroduced client, including but not limited to, the fact that the solicitor/introducer is receivingcompensation,thenatureofthecompensationbeingreceivedandwhetherornottheintroducedclientispayinganymoreorlessforadvisoryservicesbecauseofthisreferralfeearrangement.


ITEM15-CUSTODYSASdoesnottakecustodyofassetsinanyclientaccount.SAShasarrangementsinplacetodobusinesswithseveraldifferentcustodialfirms,includingbutnotlimitedtoCharlesSchwabandTDAmeritrade. SASwill allow a client, under certain circumstances, to choose their own broker/dealer and/or accountcustodian(pleaseseefurtherexplanationof“directedbrokerage”underItem12above).Thecustodianisresponsibleforsendingoutaccountstatementonatleastaquarterlybasiswhichwillitemizeeachofthecurrentaccountholdings,therevaluesandalltransactionsthathaveoccurredintheclient’saccount.Upon request from you, SAS will also prepare a quarterly performance statement. You are stronglyadvisedtocomparethecustodialstatementwiththequarterlyperformancereporteachquarter.Intheevent of a discrepancy, the custodian's statementwill prevail. Anydiscrepancies, errors, or questionsshouldbebroughttotheattentionofyourRIAfirm.


ITEM16-INVESTMENTDISCRETION

AlthoughSASdoesnotprohibitnon-discretionaryadvisoryservices,inalmostallsituationstheservicesprovidedtoyouandyouraccountarediscretionary innature.DiscretionmaymeanthatyourRIAfirmhastheauthoritytobuyandsellsecuritiesinsideofyouraccount,withoutconsultingyoupriortoplacingsuchtrades. It isalsoconsidereddiscretionwhenSASand/oryourRIAfirmcanhireorfireThird-PartyMoneyManagers (TPMMs)onyourbehalf in themanagementof yourportfolio.Whenyou signyourclientmanagementagreement,youareprovidingSASandyourintroducingRIAfirma“limited”power-of-attorney,permittingustotakesuchdiscretionaryaction.Theauthorityislimitedinthat,neitherSASnoryourRIAfirmeverassumetheauthoritytowithdrawfundsorsecuritiesfromyouraccount.


ITEM17-VOTINGCLIENTSECURITIESSASisan“advisoryplatform.”Assuch,SASprovidesadvisoryandadministrativeservicestoitsmanyRIAclients.SASoffersitsRIAclientsproxyvotingservices.ItisuptoeachindividualRIAclientastowhethertheyelecttouseSAStovoteitsclient’sproxies.

SASprovidesproxyvotingandassetrecoveryservicestoitsRIAclientswhochoosetosubscribetosuchservices.

SASutilizesProxyEdgeplatform,aserviceprovidedbyBroadridgeInvestorCommunicationSolutions,Inc.(“Broadridge”)toassistwithitsproxyvotingandassetrecoveryservices.ThroughtheProxyEdgeplatform,SASemploystheservicesofa“RecommendationProvider”whichisathirdpartyproxyresearchandduediligencefirm.TheRecommendationProviderassessesandanalyzescorporategovernanceandproxyissuesandmakesindependentrecommendationsastohowtovotesecuritiesproxiesintheclient’sbestinterest.ByutilizingaRecommendationProvider,SASavoidsanyconflictofinterestitmighthavewithanyparticularproxyvotingevent.

TheProxyEdgeplatformispreprogrammedtovoteallauthorizedclientproxiesinaccordancewiththerecommendationprovidedbytheRecommendationProvider.IfaclientorRIAfirmrequests,inwriting,thatwevoteaparticularproxyeventaparticularway,SASwillaccesstheProxyEdgeplatformandvotetheproxyasrequested.

Atleastannually,SASwillconductareviewoftheRecommendationProvider’sactivitiesandvotinghistory.ThereviewisdesignedtoidentifyanyconflictsofintereststheRecommendationProvidermighthaveandtodocumenttheircompetencyandindependence.

AllproxyvotingrecordsandhistorywillbemaintainedontheProxyEdgeplatformforaminimumoffiveyears.

IfyouwouldliketorequestafreecopyofSAS’sproxyvotingproceduresorwouldliketorequestafreecopyofhowSASvotedaparticularproxyforyou,pleasecontactusat(972)[email protected]

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