Causey Demgen & Moore P.C. is registered with the United States Securities and Exchange Commission
(SEC) as a Registered Investment Advisor and operates under the RIA exemption with regards to providing
asset management services for municipalities. (Note that such registration does not imply a certain level
of skill or training.) Further, Causey Demgen & Moore P.C. is a member of the Financial Planning Division
of the American Institute of Certified Public Accountants (AICPA) and a member of the Financial Planning
Association (FPA).
Our Colorado-based firm was founded in 1981, and is a privately held company owned by its shareholders,
all of whom are current employees of the firm, and none of whom individually owns more than 25% of
the company.
Our company has multiple distinct lines of business:
•Wealth Management (Financial Planning & Investment Advisory Services)
•Litigation Support & Business Valuation
•Management Consulting Services
•Asset Management Services for Municipalities
•Tax Preparation & Consultation
•Audit & Attestation
This form ADV Part 2A speaks specifically to our Investment Advisory and Asset Management
for Municipalities and will address any conflicts between these activities and our other businesses.
ITEM 4A ADVISORY BUSINESS FOR INDIVIDUALS, TRUSTS, ESTATES, CORPORATIONS AND
OTHER BUSINESS ENTITIES
A portion of our financial planning and investment advisory practice focuses on working with individuals,
trusts, estates, corporations and other business entities, as well as pension and profit-sharing
plans, towards achieving their long-term financial planning and investment goals. Our financial
planning and investment management process for individuals, trusts, estates, corporations and other
business entities, as well as pension and profit-sharing plans has four distinct steps (all or some of which
may be followed):
1) We and our client construct a comprehensive financial plan which we may refer to as a Capital
Sufficiency Analysis or a Financial Plan. The result of the financial plan guides the rate of return
that will be targeted in hopes of achieving the client’s long-term growth objectives and income
needs. The targeted rate of return considers the long-term impact of inflation on the client’s
objectives. We refer to this adjusted return as the real rate of return.
2) An Investment Plan is developed that integrates the client’s risk tolerance and investment
constraints (such as need for current income) to the targeted real rate of return. A unique and
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customized strategy that is believed to have a high likelihood of success in achieving the client’s
individualized goals is then presented to the client.
3) We utilize a highly diversified investment strategy, where we target a long-term Strategic Asset
Allocation and use short-term tactical changes to the asset allocation (based on a three-to-five
year outlook) to capitalize on near-term market opportunities.
4) Ongoing investment management requires that we correspond with our clients on a regular basis
to review and gauge performance relative to the agreed upon targeted real rate of return, as well
as to discuss changing goals, objectives, and income needs.
We believe that this process provides the foundation for the targeted investment strategy that is
developed for each individual client. We believe that financial planning and investment advisory services
require close and regular contact with our clients to assess their changing needs and to develop strategies
for reaching both their short-term and long-term goals. In some cases, a client may choose not to
incorporate all of the steps of the financial planning process described herein.
In employing our investment strategy, we utilize mutual funds, exchange-traded funds, individual stocks,
fixed income (bond) investments, and cash or cash equivalents in our portfolios. At times we consult with
our clients on assets that they may bring to our management which are outside of those typically used in
our strategy. Causey Demgen & Moore P.C. tailors its advisory services to the individual needs of our
clients. Clients can impose restrictions on investment in certain securities or certain types of securities.
This is discussed in further detail in Item 8 (Methods of Analysis, Investment Strategies and Risk of Loss).
As of June 30, 2023, Causey Demgen & Moore P.C. managed approximately
$302,909,667 on
a discretionary basis and approximately $15,420,561 on a non-discretionary basis for individuals,
trusts, estates, corporations and other business entities, non-profit organizations and/or pension
and profit sharing plans.
A portion of our financial planning and investment advisory practice focuses on working with municipal
entities and institutional investors towards achieving their long-term financial planning and investment
goals. Our financial planning and investment management process has five distinct steps (all or some of
which may be followed):
1) We and our client construct an overview of the entity’s financial position which we may refer to
as a Financial Overview. The result of the financial overview guides the investment strategy that
will be employed in hopes of achieving the client’s liquidity objectives while maximizing their
investment return.
2) In consultation with the Client and other advisors or counsel retained by the Client, an Investment
Strategy is developed that considers the client’s risk tolerance, and various investment constraints
such as liquidity needs, permitted investments, IRS yield restrictions, etc. A unique and
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customized strategy that is believed to have a high likelihood of success in achieving the client’s
individualized goals is then presented to the client.
3) We construct a highly individualized investment plan in which we consider the approved
investment strategy as well as other aspects of an entity’s circumstances (creditworthiness,
project expenses, timing of receipt of funds intended to be invested, flexibility with respect to
amount and timing of funds to be withdrawn, etc.) and design a portfolio of investments that aims
to maximize return through all appropriate investment products, while controlling credit,
reinvestment and interest rate risk within the desired parameters.
4) We identify potential providers for each targeted investment and acquire the targeted
investments for the benefit of the client using a competitive open-market bidding process.
5) Ongoing investment management requires that we correspond with our clients on a regular basis
to review and gauge performance relative to the agreed upon Investment Strategy, as well as to
discuss changing goals, objectives, and liquidity needs.
We believe that this process provides the foundation for the targeted investment strategy that is
developed for each individual municipal client. We believe that financial planning and investment
advisory services require close and regular contact with our clients to assess their changing needs and to
develop strategies for reaching both their short-term and long-term goals. In some cases, a client may
choose not to incorporate all the steps of the financial planning process described herein.
In employing our asset management services for municipal entities, we utilize structured products, fixed
income (bond) investments, and cash or cash equivalents in our portfolios. Causey Demgen & Moore P.C.
tailors its advisory services to the individual needs and restrictions of our clients. Clients can impose
restrictions on investment in certain securities or certain types of securities. This is discussed in
further detail in Item 8 (Methods of Analysis, Investment Strategies and Risk of Loss).
Causey Demgen & Moore P.C. and its professionals have provided services over the past 12 years
with respect to the bidding of and structuring of open market securities portfolios and investment
contracts (i.e. repurchase agreements (“repos”), full-flex repos, forward purchase agreements,
guaranteed investment contracts, and debt service deposit agreements). We provide bidding
agent services on transactions involving issuers, financial advisors, underwriters and bond counsel
located throughout the United States and its Territories. Our services encompass a wide range of
deal structures including escrows funded with U.S. Agency securities, and investment of general fund
monies, investment of project fund monies, investment of capitalized interest fund monies,
investment of debt service reserve fund monies and investment of sinking fund monies.
As of June 30, 2023, Causey Demgen & Moore P.C. assisted with the management of
approximately $133,000,000 on a discretionary basis and $240,000,000 on a non-discretionary basis for
municipal entities.
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