Tri-star Advisors, Inc.

Tri-Star Advisors, Inc. is a financial advisory firm based in Houston, Texas, established in November 2009. The firm specializes in providing managed account services to individuals and entities seeking portfolio management. Tri-Star Advisors offers services such as selecting investments, monitoring sub-advisors, periodic reporting, portfolio rebalancing, and tax loss harvesting. The firm recommends a minimum account size of $500,000, which is negotiable based on various factors. Clients are charged a management fee based on a percentage of assets under management, with annual fees ranging up to 1.15%. For clients utilizing sub-advisory services through Betterment, LLC, an additional fee of .25% is charged. Tri-Star Advisors does not charge performance-based fees. The firm acts as a fiduciary and is obligated to act in the best interests of its clients. The investment strategies employed by Tri-Star Advisors focus on achieving maximum diversification through diversified portfolios, including investments in cash, bonds, ETFs, mutual funds, and stocks. The firm utilizes security analysis methods such as charting, fundamental analysis, technical analysis, and cyclical analysis to make investment decisions. In 2015, Tri-Star Advisors, Inc. settled with the SEC for violations related to failing to notify and receive consent prior to individual trades being placed in clients' accounts. The firm paid a civil money penalty, and the principal owners, William T. Payne and Jon C. Vaughan, also paid penalties. Payne and Vaughan are registered representatives of Calton & Associates, Inc., a broker-dealer, and may offer clients advice or products from those activities. Clients are encouraged to review account statements for accuracy and compare them with statements received from the custodian.