Alliance Advisory & Securities, LLC is an SEC-registered investment adviser with its principal place of
business located in California. All references to Alliance Advisory & Securities, LLC being a registered
investment adviser does not imply a certain level of skill, training, or any endorsement by the SEC.
Alliance Advisory & Securities, LLC began conducting business in 1982.
Our firm is wholly owned by our parent company, Alliance Financial Group, Inc.
Alliance Financial Group, Inc. is owned by:
• Randall P. Sanada Sr.,
• Randall P. Sanada, Jr., and
• Jerry V. Sanada
Alliance Advisory & Securities, LLC offers the following advisory services to our clients:
• Investment Portfolio Services
• Investment Portfolio Model Management
• Affiliated Operating Companies & Pooled Fund Management
• Financial Planning
INVESTMENT PORTFOLIO SERVICES
Our firm provides non-continuous asset management of client funds based on the individual needs of
the client. Through personal discussions in which goals and objectives based on the client's particular
circumstances are established, we develop the client's personal investment allocation. We create and
manage a portfolio based on that ideal allocation. During our data-gathering process, we determine the
client’s individual objectives, time horizons, risk tolerance, and liquidity needs. As appropriate, we may
also review and discuss a client’s prior investment history, as well as family composition and
background.
We manage these advisory accounts on a non-discretionary basis. Account supervision is guided by the
client's stated objectives (i.e., maximum capital appreciation, growth, income, or growth and income),
as well as tax considerations.
Clients may impose reasonable restrictions on investing in certain securities, types of securities, or
industry sectors.
Once the client's portfolio has been established, we review the portfolio at least annually or more
frequently as requested by the client, and if necessary, rebalance the portfolio on an annual basis or
more frequently, based on the client's individual needs.
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Our investment recommendations are not limited to any specific product or service offered by a broker-
dealer or insurance company and may include advice regarding the following securities:
• Exchange-listed securities
• Corporate debt securities (other than commercial paper)
• Commercial paper
• Municipal securities
• Variable life insurance
• Variable annuities
• Mutual fund shares
• United States governmental securities
• Interests in partnerships investing in real estate
Because some types of investments involve certain additional degrees of risk, they will only be
recommended when consistent with the client's stated investment objectives, tolerance for risk,
liquidity, and suitability.
To ensure that our initial determination of an appropriate portfolio remains suitable and that the
account continues to be managed in a manner consistent with the client's financial circumstances, we
will:
1. At least annually, contact each participating client to determine whether there have been any
changes in the client's financial situation or investment objectives; and whether the client wishes to
impose investment restrictions or modify existing restrictions;
2. Be reasonably available to consult with the client; and
3. Maintain client suitability information in each client's file.
INVESTMENT MODEL PORTFOLIO MANAGEMENT
Our firm provides portfolio management services to clients using the following model asset allocation
portfolios:
• Core: Conservative Income, Balanced Income, Growth & Income, Balanced Growth, Growth
• Core Defensive: Conservative, Balanced Income, Growth & Income, Balanced Growth, Growth
• Values Based: Conservative, Balanced Income, Growth & Income, Balanced Growth, Growth
• Dimensional: Income, Conservative Income & Growth, Moderate Income & Growth, Growth &
Income, Growth, Aggressive Growth, AFG Extended Equity
• Dimensional Socially Responsible: Growth & Income, Growth
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• U.S. Large Cap Equity / AFG 50
• Municipal Income
Each model portfolio is designed to meet a particular investment goal.
Control: Your account is, of course, yours. You have the final say and may choose to place reasonable
restrictions on the account at any time. Alliance does reserve the right to remove the account from the
Model Program if the restrictions are unreasonable or interfere with the operation or effectiveness of
the program. You may also remove your account from the Model Program on demand.
All Model Program accounts are discretionary accounts. This means that you have given permission for
Alliance Advisory & Securities, LLC to trade the securities in these accounts without asking you for
further permission. However, we have a fiduciary duty to act in your best interests at all times. In
addition, the accounts are guided by general principles which help you, your Advisor, and Alliance know
the manner in which the account will be handled.
Accounts will be periodically rebalanced to maintain your chosen allocation. Generally, your account
will be reviewed on a quarterly basis to make sure the individual investments are within the specific
allocation tolerances. When your investments move outside the allowed tolerance, it triggers a
rebalancing of your account. Although the tolerances may vary by specific investment, they are
generally set at approximately plus or minus 2% (relative).
As market conditions change, the specific allocations, investments, and tolerances within your account
will be adjusted by Alliance. These adjustments are guided by current and projected market conditions
and modern portfolio theory.
Core Accounts
Each Core account has an allocation to fit your financial plan. The purpose of the Core account is to
make investment decisions based on your investment objectives using modern portfolio theory to guide
the particular allocations in the account. Core accounts generally use funds with active managers rather
than passive investment managers.
Defensive Core Accounts
Because Defensive Core accounts anticipate the need to draw cash, Alliance pays particular attention to
the cash portion of the account. This strategy typically holds approximately 12-18 months of the
anticipated liquidity needs in a cash/money market position. That cash reserve allows Alliance time to
make the best decision on when to transition other securities to cash with the goal on not having to sell
in unfavorable markets. Defensive Core accounts generally have all interest, cash dividends, and capital
gains sent directly to the cash/money market position in the account.
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Values Based Accounts
The purpose of the Valued Based account is not only to make investment decisions based on your
investment objectives but include an additional layer, focusing on investments that align with certain
values – because how you profit matters. The accounts generally use funds with active managers that
have additional screening processes beyond the typical index. Because of this additional layer, the
accounts will drift more in terms of allocation and performance from their closest index.
Dimensional Accounts
Each Dimensional account has an allocation to fit your financial plan. The purpose of the Dimensional
account is to make investment decisions based on your investment objectives using a long-term
strategic allocation
using Dimensional Funds (DFA). Dimensional Funds are passively managed funds
with low internal costs.
Socially Responsible Dimensional Accounts
Our Socially Responsible Dimensional Accounts take into consideration sustainable and ethical
alternatives to traditional investing by selecting a blend of mutual funds that promote environmental
stewardship, shareholder advocacy, and community investing.
Individual Securities Accounts (Municipal Income and U.S. Large Cap Equity / AFG 50)
Trades are made on an irregular basis, using proprietary modeling systems to monitor various lagging,
coincident, and leading macro and micro economic statistics and to calculate various valuation metrics
to project the best response to the market. Data is compiled from numerous independent research
firms, such as Applied Finance Group, and the public domain. Generally, all interest, cash dividends, and
capital gains distributions will be sent directly to the cash/money market position in your account.
We manage these advisory accounts on a discretionary basis. Account supervision is guided by the
client's stated objectives (i.e., maximum capital appreciation, growth, income, or growth and income),
as well as tax considerations.
Through personal discussions with the client in which the client's goals and objectives are established,
we determine if the model portfolio is suitable to the client's circumstances. Once we determine the
suitability of the portfolio, the portfolio is managed based on the portfolio's goal, rather than on each
client's individual needs. Clients, nevertheless, have the opportunity to place reasonable restrictions on
the types of investments to be held in their account. Clients retain individual ownership of all securities.
AFFILIATED OPERATING COMPANIES AND POOLED FUND MANAGEMENT
Our firm provides private offerings of affiliated operating companies and pooled funds to clients using
private, limited partnerships and limited liability companies. Private offerings are generally offered to
accredited investors and each has its own private placement memorandum and disclosure documents
detailing its objectives, investments, goals, restrictions, risks and costs.
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Alternative Investment Portfolio, L.P.:
Alternative Investment Portfolio, L.P. (“AIP”), a Delaware limited partnership, is invested primarily in real
estate Alliance Financial Group, Inc., the parent company of Alliance Advisory & Securities, LLC, serves
as the general partner of AIP. For detailed information on AIP, please see the Limited Partnership
Agreement for AIP. This partnership is closed to new investors and is not accepting additional capital.
Stable Value Portfolio, L.P.:
Stable Value Portfolio, L.P. (“SVP”), a Delaware limited partnership, is invested primarily in short-term
fixed income securities such as money market securities and debt instruments. Alliance Financial Group,
Inc., the parent company of Alliance Advisory & Securities, LLC, serves as the general partner of SVP. For
detailed information on SVP, please see the Limited Partnership Agreement for SVP. This partnership is
closed to new investors and is not accepting additional capital.
COMMUNE CAPITAL, LLC - offers various private placements/limited partnerships ranging from
portfolios of commercial loans to equity investments in commercial real estate (multi-family and self-
storage properties), each with their own Management Company owned and run fully or in part by
Commune Capital, LLC (see Item 10).
General Management
Through personal discussions with the client in which the client's goals and objectives are established,
we initially determine whether the affiliated operating company or pooled fund is suitable to the client's
circumstances. Once we confirm suitability, the operating company or pooled fund is managed based on
the respective operating documents, rather than on each client's individual needs.
Because some types of investments involve certain additional degrees of risk, they will only be
recommended or implemented when consistent with the client's stated investment objectives,
tolerance for risk, liquidity and suitability.
FINANCIAL PLANNING
We provide financial planning services. Financial planning is a comprehensive evaluation of a client’s
current and future financial state by using currently known variables to predict future cash flows, asset
values and withdrawal plans. Through the financial planning process, all questions, information and
analysis are considered as they impact and are impacted by the financial circumstances and objectives
of the client. Clients purchasing this service receive a written report which provides the client with a
detailed financial plan designed to assist clients to achieve their financial goals and objectives.
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The financial plan can address any or all of the following areas:
• PERSONAL/NET WORTH: We review family records, budgeting, personal liability, estate information
and financial goals.
• TAX & CASH FLOW: We analyze the client’s income tax and spending and planning for past, current
and future years; then illustrate the impact of various investments on the client's current income tax
and future tax liability.
• INVESTMENTS: We analyze investment alternatives and their effect on the client's portfolio.
• RETIREMENT / FINANCIAL INDEPENDENCE: We analyze current strategies and investment plans to
help the client achieve his or her retirement goals.
• RISK MANAGEMENT: We review the client’s cash needs at death, income needs of surviving
dependents, estate planning and disability income. We review existing policies to ensure proper
coverage for life, health, disability, long-term care, liability, home and automobile
• BENEFICIARY & ESTATE: We assist the client in assessing and developing long-term strategies,
including as appropriate, living trusts, wills, estate tax reviews, powers of attorney, asset protection
plans, nursing homes, and Medicaid.
• EDUCATION: We review and assist in developing a saving plan and goal for future education costs.
We gather required information through in-depth personal interviews. Information gathered includes
the client's current financial status, tax status, future goals, return objectives and attitudes towards risk.
We carefully review documents supplied by the client, including a questionnaire completed by the
client, and prepare a written report. Should the client choose to implement the recommendations
contained in the plan, we suggest the client work closely with his/her attorney, accountant, insurance
agent, and/or stockbroker. Implementation of financial plan recommendations is entirely at the client's
discretion.
We also provide general non-securities advice on topics that may include tax and budgetary planning,
estate planning, education planning, and business planning.
Typically, the financial plan is presented to the client within six months of the contract date, provided
that all information needed to prepare the financial plan has been promptly provided.
Financial Planning recommendations are not limited to any specific product or service offered by a
broker-dealer or insurance company. All recommendations are of a generic nature.
Assets under Management: As noted above, we manage client assets on both a discretionary and non-
discretionary basis. As of December 31, 2023, we have a total of $608,366,297 in assets under
management; with $329,539,445 under discretionary management and $278,826,852 under non-
discretionary management.
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