ADV Part 3
Addis & Hill, Inc.
Addis & Hill, Inc. (“Addis Hill”) is an Investment Adviser registered with the Securities and Exchange Commission (“SEC”). We feel it is important to for you to understand how advisory and brokerage services and fees differ in order to determine which type of account or service is right for you.
There are free and simple tools available to research firms and financial professionals at www.investor.gov/crs, which also provides educational materials about investment advisers, broker‐dealers, and investing.
What investment services and advice can you provide me?
As an investment adviser, Addis Hill offers investment advisory services to retail investors for an ongoing fee calculated on the value of your account. Our advisory services include investment supervisory services, where we start each client relationship with a series of consultative sessions to discuss your financial situation, focusing on your investment goals, your risk tolerance, your time horizon, any investment preferences you have, and our investment strategies. We then tailor an investment policy and portfolio for you. We will regularly monitor your investments on a continuous basis as part of our standard services. Please refer to Item 4 of our Form ADV Part 2A for further information.
We manage accounts on a discretionary basis, which means we do not need to call you when buying or selling investments in your account. You will sign an investment management agreement and limited power of attorney giving us this trading authority. This agreement will remain in place until you or we terminate our relationship. Please refer to Item 16 of our Form ADV Part 2A for further information.
We attempt, whenever possible, to limit tour investment vehicles to government‐backed fixed income products, low‐cost index mutual funds and exchange traded funds.
Questions to Ask Us:
- Given my financial situation, should I choose an investment advisory service? Why or why not?
- How will you choose investments to recommend to me?
- What is your relevant experience, including your licenses, education, and other qualifications? What do these qualifications means?
What fees will I pay?
Advisory annual fee is equal to one and a quarter percent (1.25%) of assets that are transferred to Addis Hill and placed in one or more of their managed ETF customized model portfolios under their discretionary asset management service. Accounts in excess of $2,000,000 will be charged a reduced fee of.50% on the portion of the account value over and above $2,000,000. One‐twelfth of the annual fee will be billed monthly in advance. The monthly fee is based on the account’s value on the last calendar day of the prior month. The fee will be paid directly to Addis Hill, from the accounts held by the custodian. Partial month fees at the beginning or end of an advisory relationship will be prorated. The asset‐based fee will cover on‐going comprehensive financial planning and investment management services. Addis Hill’s minimum annual fee is $3000. All fees will be disclosed upfront and in writing.
The broker‐dealer (“custodian”) that holds your assets can charge you a transaction fee when we buy or sell an investment for you. These transaction fees are in addition to our advisory fee. You could also pay fees charged by the custodian for certain investments and maintaining your account. Some investments, such as mutual funds and exchange traded funds charge additional fees that will reduce the value of your investments over time.
You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. Please refer to Item 5 of our Form ADV Part 2A for further information.
Question to Ask Us:
- Help me understand how these fees and costs might affect my investments. If I give you $40,000 to invest, how much will go to fees and costs, and how much will be invested for me?
What are your legal obligations to me when acting as my investment adviser?
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you.
Here are some examples to help you understand what this means.
How else does your firm make money and what conflicts of interest do you have?
Addis Hill’s revenue is from the advisory fees we collect from our clients’ accounts each month. We have an incentive to increase the amount of investments we manage which could bias our advice. For example, we might be in favor of keeping money in your managed portfolio rather than recommending that you pay off debt
or make investments that we do not manage. Our standard advice, however, will be that mortgages or other debt that carries an interest rate higher than the safe fixed‐income investment in your portfolio should be paid down or avoided.
Question to Ask Us:
- How might your conflicts of interest affect me, and how will you address them
How do your financial professionals make money?
Our employees receive a salary plus some share in a percentage of Addis Hill’s revenue.
Do you or your financial professionals have legal or disciplinary history?
No, our firm and/or financial professionals do not have legal and/or disciplinary history. Visit www.investor.gov/crs for a free and simple search tool to research our firm and our financial professionals.
Questions to Ask Us:
- As a financial professional, do you have any disciplinary history? For what type of conduct?
You can find additional information about our investment advisory services on the SEC’s website www.adviserinfo.sec.gov by searching CRD #117495. You may also contact our firm at 610.688.9500 or info@AddisHill.com to request a current copy of our Form ADV Part 2 or up‐to‐date Form ADV Part 3 – this relationship summary.
Questions to Ask Us:
- Who is my primary contact person?
- Is he or she a representative of an investment adviser or a broker‐dealer?
- Who can I talk to if I have concerns about how this person is treating me?
You can download our form ADV Part 3 by clicking on the link below.