CYPRESS CAPITAL GROUP, INC.
Cypress Capital Group, Inc. F/K/A Palm Beach Investment Advisors has been managing investment
advisory accounts for clients since 1988. Cypress Capital Group has been doing business in its own
name since 2004. Cypress Capital Group provides investment advice to clients throughout the United
States.
INVESTMENT MANAGEMENT SERVICES
Cypress Capital Group focuses on individual security management using the following asset classes:
Equity Securities (Exchange-listed and over the counter securities [including Master Limited
Partnerships traded as equities]; and foreign issues)
Fixed Income Securities (Corporate Debt, Commercial Paper, Certificates of Deposit, Convertible
Bonds, Municipal Bonds, United States Government Bonds, Foreign Bonds, Other Securities,
Open/Closed-end Mutual Funds, Exchange Traded Funds and non-traditional asset classes) and
occasionally Warrants and Options.
Cypress Capital Group develops and manages customized portfolios of individual securities. Portfolios
are constructed after a personalized analysis of each client's lifestyle, including the client's risk
tolerance, investment horizon, and requirements for income. Clients may place written restrictions and
limitations regarding investments in certain securities or types of securities. Client investor profiles are
periodically updated throughout the advisory relationship and as lifestyle changes occur.
As part of our portfolio management services, in addition to other types of investments (see
disclosures below in this section), we may invest your assets according to one or more Investment
Strategies managed by an independent portfolio management team. These strategies are branded as
"Alpha Quant Investment Strategies" and are designed for investors with varying degrees of risk
tolerance ranging from a more aggressive investment strategy to a more conservative investment
approach. Clients whose assets are invested in Alpha Quant Strategies may not set restrictions on the
specific holdings or allocations within the strategy, nor the types of securities that can be purchased in
the strategy. Nonetheless, clients may impose restrictions on investing in certain securities or types of
securities in their account. In such cases, this may prevent a client from investing in certain strategies
that are managed by our firm. Cypress Capital Group provides these investment strategies as a
primary adviser and to financial intermediaries that have discretion over their client accounts.
The Alpha Quant Investment Strategies are based on three Alpha Quant proprietary products: equity
strategies, multi-asset portfolios and strategy indexes.
The equity strategies utilize proprietary, fundamentals-based quantitative models. The strategies
are built based on core fundamental concepts and managed through a highly disciplined, repeatable
and transparent investment process. Equity portfolios, consisting primarily of individual equity
securities, span different styles and market capitalizations. The Alpha Quant equity strategies are
managed with a disciplined, rules-based investment process based on fundamental concepts.
Multi-asset portfolios include a combination of the Alpha Quant equity strategies, mutual funds,
exchange-traded funds, and individual securities. The multi-asset portfolios follow a strategic asset
allocation structure among different asset classes to construct risk and cost sensitive solutions for
clients across equity, fixed income and alternative asset classes. Based on client direction, Cypress
Capital Group may customize the multi-asset portfolios to exclude certain asset classes or securities.
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Cypress Capital Group also offers equity portfolio management related to the SmartALPHA® strategy
index suite. The SmartALPHA® Strategy Indexes consist of four rules-based alpha seeking equity
indexes designed to capture active and flexible exposure throughout the economic cycle.
The SmartALPHA® strategy indexes are independently calculated and disseminated by S&P/Dow
Jones Indices.
Direct and Sub-Advised Accounts
Cypress Capital Group provides discretionary advisory services to clients that directly enter into an
advisory agreement with the Company. Cypress Capital Group offers custom equity portfolios tailored
to the client's individual investment objective. Cypress Capital Group works with clients to determine
their investment objective, risk tolerance and other relevant information before recommending the
appropriate
allocation that it believes will most likely achieve the client's objective. Clients may request
that Cypress Capital Group allocate assets across more than one portfolio, maintain legacy holdings or
manage to specific cash needs.
Clients may also select from any of the pre-defined Alpha Quant Investment Strategies and require
little or no customization. Cypress Capital Group will manage the portfolio in accordance with each
investment strategy for all client accounts employing the strategy. Clients who impose investment
restrictions may limit Cypress Capital Group's ability to manage their account in accordance with the
investment strategy, resulting in investment performance that differs from the investment strategy or
other client accounts.
Model Portfolio Clients
Cypress Capital Group offers Alpha Quant equity strategies to third-party financial intermediaries for
such intermediaries to utilize with their respective clients. Cypress Capital Group does not have
contact with the underlying clients, and therefore, the Alpha Quant Investment Strategies are not
created to meet the specific investment objective or restrictions of any person or individual. Rather,
the Alpha Quant Investment Strategies are designed to be used as a guide for investment advisers
when managing their underlying clients' portfolios. Cypress Capital Group does not have investment
discretion over these accounts, since the intermediary decides whether to follow Cypress Capital
Group's recommended Alpha Quant Investment Strategies and makes all the security purchase and
sales decisions. Please refer to Item 12 - Brokerage Practices for a discussion of Cypress Capital
Group's trade rotation policy, which is designed to address potential conflicts related to the delivery of
model portfolios.
Third-party intermediaries and their investment advisers are solely responsible for determining their
client's suitability for any of the strategies, recommending asset allocations and investments,
purchasing and selling securities for their client accounts and all other investment decisions. For these
services, the intermediary receives a fee from the client, and a portion of such fee is paid to Cypress
Capital Group for its advisory services.
Pursuant to written agreement, Cypress Capital Group has engaged its affiliate, Cypress Bank & Trust,
to directly manage client accounts, acting in a sub-advisory capacity. Reference to the term "Portfolio
Managers" in this Brochure shall mean Cypress Bank & Trust Portfolio Managers.
IRA Rollover Recommendations
Effective December 20, 2021 (or such later date as the US Department of Labor ("DOL") Field
Assistance Bulletin 2018-02 ceases to be in effect), for purposes of complying with the DOL's
Prohibited Transaction Exemption 2020-02 ("PTE 2020-02") where applicable, we are providing the
following acknowledgment to you.
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When we provide investment advice to you regarding your retirement plan account or individual
retirement account, we are fiduciaries within the meaning of Title I of the Employee Retirement Income
Security Act and/or the Internal Revenue Code, as applicable, which are laws governing retirement
accounts. The way we make money creates some conflicts with your interests, so we operate under a
special rule that requires us to act in your best interest and not put our interest ahead of yours. Under
this special rule's provisions, we must:
•Meet a professional standard of care when making investment recommendations (give prudent
advice);
•Never put our financial interests ahead of yours when making recommendations (give loyal
advice);
•Avoid misleading statements about conflicts of interest, fees, and investments;
•Follow policies and procedures designed to ensure that we give advice that is in your best
interest;
•Charge no more than is reasonable for our services; and
•Give you basic information about conflicts of interest.
We benefit financially from the rollover of your assets from a retirement account to an account that we
manage or provide investment advice, because the assets increase our assets under management
and in turn, our advisory fees. As a fiduciary, we only recommend a rollover when we believe it is in
your best interest.
Assets Under Management
As of December 31, 2023, we provide continuous management services for $129,771,123 in client
assets on a discretionary basis, and $660,018 in client assets on a non-discretionary basis.