Item 5 Additional Compensation ........................................................................................................... 17
Item 6 Supervision ...................................................................................................................................... 17
Brochure Supplement (Part 2B of Form ADV)............................................................................ 19
George W. Mulwee ....................................................................................................................................... 19
Item 2 Educational Background and Business Experience ......................................................... 19
Item 3 Disciplinary Information ............................................................................................................ 19
Item 5 Additional Compensation ........................................................................................................... 20
Item 6 Supervision ...................................................................................................................................... 20
Firm Description
Strategic Wealth Group Registered Investment Advisor, LLC (“Strategic Wealth Group”) is an
investment advisor registered with the Securities and Exchange Commission. Strategic
Wealth Group offers investment advice to clients through the Wrap Fee Program (Program)
based on the individual needs of the client. Strategic Wealth Group is the sponsor of the
Program. Nathaniel Running is 100% owner of Strategic Wealth Group and is responsible for
management of the Program accounts.
This disclosure brochure is limited to describing the Program and other information that
client should consider prior to establishing an account in the Program. For a complete
description of other programs and services offered by Strategic Wealth Group, clients should
refer to Strategic Wealth Group’s Form ADV Part 2A, a copy of which will be provided by
Strategic Wealth Group to the client upon request.
Program Services
Strategic Wealth Group provides continuous and regular supervisory services on a
discretionary and non-discretionary basis. Strategic Wealth Group will offer clients ongoing
portfolio management services through determining individual investment goals, time
horizons, objectives, and risk tolerance. Investment strategies, investment selection, assets
allocation, portfolio monitoring and the overall investment program will be based on the
above factors.
Discretionary: When the client provides Strategic Wealth Group discretionary authority the
client will sign a limited trading authorization or equivalent. Strategic Wealth Group will have
the authority to execute transactions in the account without seeking client approval on each
transaction.
Non-discretionary: When the client elects to use Strategic Wealth Group on a non-
discretionary basis, Strategic Wealth Group will determine the securities to be bought or sold
and the amount of the securities to be bought or sold. However, Strategic Wealth Group will
obtain prior client approval on each and every transaction before executing any transactions.
Through a multiple step discovery process, Strategic Wealth Group obtains the necessary
financial data from the client and assists the client in setting appropriate investment
objectives for the Program account. Strategic Wealth Group obtains updated information
from the client during regularly scheduled client performance reviews, as necessary in order
to provide personalized investment advice to the client.
The client will be required to enter into a written agreement with Strategic Wealth Group in
order to establish a Program account. The client will also be required to complete an
application with the broker/dealer that will act as custodian for Program account assets.
A Wrap Fee Program is an investment advisory program in which clients pay one fee for both
investment advisory services and the transaction costs in the account(s). The fee is bundled
with Strategic Wealth Group’ costs for executing transactions in the account(s). This may
result in a higher advisory fee to the client. Strategic Wealth Group does not charge clients
higher advisory fees based on the trading activity, but clients should be aware that Strategic
Wealth Group may have an incentive to limit the trading activities in the
account(s) because
Strategic Wealth Group is charged for executed trades. By participating in a wrap fee
program, clients may end up paying more or less than they would through a non-wrap fee
program where a lower advisory fee may be charged, but trade execution costs are passed
directly through to the client by the executing broker.
The Program Fee is not based directly upon the actual transaction or execution costs for the
transactions within the account(s). Depending on the underlying investments in the Program
and how much trading activity occurs, clients may pay more or less than if they chose another
advisory program that does not have a wrap fee, or if clients chose to pay separately for all of
the transaction costs (e.g., pay the advisory fee plus all transaction charges). Strategic Wealth
Group offers both a Wrap Fee Program and a Non-Wrap Fee Program, therefore Strategic
Wealth Group will review the investment options with clients to determine the best offering.
Similar services to those offered in the Program may be purchased from another unaffiliated
financial services provider.
Program Fees
The annual investment advisory fee will be based on a percentage of Assets Under
Management. The annual fees will be no more than 2.0%. The annual fee may be negotiable.
Accounts within the same household may be combined for a reduced fee. Fees are billed
quarterly in advance based on the amount of assets managed as of the opening of business on
the first business day of each quarter. Clients must consent in advance to direct debiting of
their investment account for the quarterly asset management fees. Quarterly advisory fees
deducted from the clients' account by the custodian will be reflected in the client statements.
Lower fees for comparable services may be available from other sources.
Clients may terminate their account within five (5) business days of signing the Investment
Advisory Agreement for a full refund. Clients may terminate advisory services with thirty (30)
days written notice. For accounts closed mid-quarter, the client will be entitled to a pro rata
refund for the days service was not provided in the final quarter. Client shall be given thirty
(30) days prior written notice of any increase in fees, and client will acknowledge, in writing,
any agreement of increase in said fees.
Additional deposits and withdrawals will be added or subtracted from account assets, as the
case may be, which may lead to an adjustment of the Annual Fee. All Annual Fees are deducted
from the account by the custodian unless other arrangements have been made in writing. The
Annual Fee is paid to and retained by Strategic Wealth Group and the advisory
representatives.
In addition to the Annual Fee, clients may also incur certain charges imposed by third parties
in connection with investments made through Program accounts, including those imposed by
the custodian. These may include, but are not limited to, the following: mutual fund or money
market 12b-1 fees, sub-transfer agent fees, certain deferred sales charges on previously
purchased mutual funds transferred into the account, other transaction charges and service
fees, IRA and qualified retirement plan fees, alternative investment administrative fees,
administrative servicing fees for trust accounts, creation and development fees or similar fees
imposed by unit investment trust sponsors, managed futures investor servicing fees, and
other charges required by law. Strategic Wealth Group does not receive any portion of these
fees. Further information regarding charges and fees assessed by a mutual fund or variable
annuity are available in the appropriate prospectus.
Mutual funds may also charge a redemption fee if a redemption is made within a specific time
period following the investment. The terms of any redemption fee are disclosed in the fund’s
prospectus. Transactions in mutual fund shares (e.g., for rebalancing, liquidations, deposits
or tax harvesting) may be subject to a fund’s frequent trading policy.
Client should be aware that margin borrowing involves additional risks. Margin borrowing
will result in increased gain if the value of the securities in the account go up, but will result
in increased losses if the account value decreases. The custodian will charge margin interest
on any margin debt within the client’s account if a client elects to utilize margin. Margin rates
change and are based on prevailing interest rates at the time of use. Since Strategic Wealth
Group will receive 100% of the fees paid for management of the wrap program, this may
create an incentive to recommend that clients participate in a wrap fee program rather than
a non-wrap fee program (where clients would pay for trade execution costs) or brokerage
account where commissions are charged. This is because, in some cases, Strategic Wealth
Group may stand to earn more compensation from advisory fees paid through a wrap fee
program arrangement if clients’ accounts are not actively traded. As an investment
philosophy, Strategic Wealth Group practices a nimble trading strategy that seeks to grow
client assets in up trends and protect principal during down trends.