The following paragraphs describe the Firm's advisory services.
DESCRIPTION OF SERVICES AND FEES
Addington Financial Group is a registered investment adviser based in Cypress Springs Village, Texas.
The Firm is organized as a sole proprietorship. Addington Financial Group has been providing
investment advisory services since 1996. Laura Lee Addington is the Firm's owner. The Firm offers the
following investment advisory services, which are personalized to each client:
• Managed account services
Financial planning services are not offered separately, but are included in conjunction with managed
account services.
MANAGED ACCOUNT SERVICES
Addington Financial Group offers discretionary and non-discretionary managed account services. The
Firm's investment advice is tailored to meet clients' needs and investment objectives. If you retain the
Firm for managed account services, an investment adviser representative will meet with you to
determine your investment objectives, risk tolerance, and other relevant information (the "suitability
information") at the beginning of our advisory relationship.
Managed Account Services provide clients with programs for investing their funds in response to their
long-term needs. These programs typically begin with the development of a profile of the Client and a
review of market data. This results in the formation of an investment model. The model serves to
illustrate the interaction between a Client's objectives and constraints and the risk-reward alternatives
of the market. A review of the model with the Client guides the development of a suitable investment
policy. In turn, this investment policy serves as the blueprint for an investment plan. The outgrowth of
this process is a set of reasonable working guidelines for the management of an investment portfolio.
Portfolios constructed by Addington Financial Group typically include, but are not limited to stocks,
bonds, mutual funds, and U.S. government securities. With the Client's approval, Addington Financial
Group will then implement the plan in accordance with currently prevailing market conditions and the
Client's expectations. Once the portfolio is constructed, Addington Financial Group will provide
continuous supervision and rebalancing of the portfolio, as changes in market conditions and the
Client's circumstances warrant. In addition, reports are prepared periodically for all accounts. These
reports serve as the basis for monitoring the interim progress of the account.
If you participate in the Firm's discretionary portfolio management services, Addington Financial Group
requires you to grant the Firm discretionary authority to manage your account. Discretionary
authorization will allow the Firm
to determine the specific securities, and the amount of securities, to be
purchased or sold for your account without your approval prior to each transaction. Discretionary
authority is typically granted by the investment advisory agreement you sign with the Firm, a power of
attorney, or trading authorization forms. You may limit the Firm's discretionary authority (for example,
limiting the types of securities that can be purchased for your account) by providing Addington
Financial Group with your restrictions and guidelines in writing. If you enter into non-discretionary
arrangements with Addington Financial Group, the Firm must obtain your approval prior to executing
any transactions on behalf of your account.
Managed Account Services will be billed as a percentage of assets under management. Typically
these fees are billed and payable quarterly in arrears based on the value of your account on the last
day of the quarter. The Client will be advised of the payment arrangement prior to implementation of
advisory services. In all cases this fee arrangement will be based on the following schedule:
Assets Under Management Annual Fee
Up to $100,000 1.5%
$100,001 to $1,000,000 1.0%
$1,000,001 to $2,000,000 0.75%
Over $2,000,000 Negotiable (minimum 0.50%*)
*In limited circumstances and the firm's sole discretion, Addington Financial Group reserves the right to reduce
the minimum .50% fee requirement.
FINANCIAL PLANNING SERVICES
Addington Financial Group offers broad-based, modular, and consultative financial planning services
as an additional benefit to clients utilizing its managed account services. Financial planning is not
offered as a separate and distinct service. Financial planning services may include risk management
(life, health, disability and long-term health care insurance), tax, estate, investment, education, and
retirement planning. The Firm does not charge an additional fee for these services.
Financial planning will typically involve providing a variety of advisory services to clients regarding the
management of their financial resources based upon an analysis of their individual needs. If you retain
the Firm for financial planning services, an investment adviser representative will meet with you to
gather information about your financial circumstances and objectives. The Firm may also use financial
planning software to determine your current financial position and to define and quantify your long-term
goals and objectives.
ASSETS UNDER MANAGEMENT
As of December 31, 2023, discretionary assets under management held by Addington Financial
Group are approximately $269,161,600. Addington Financial Group does not have any assets under
management on a non-discretionary basis.