In 2021, Hill Investment Group Partners, LLC (“HIG”) acquired the advisory business of Hill
Investment Group, LLC, who has been providing advisory services since 2005. In 2022 Hill
Investment Group Partners, LLC (“HIG”) acquired the advisory business of Emerald Spectrum
Advisory, who has been providing advisory services since 1998. HIG serves four main client
segments: Hillfolio, Hill, Hilltop, and Hill Institutional. Some of the segments are referred to
specifically below. Where HIG is used, the information applies to the collective firm, which
includes all segments. As of December 31, 2023 the regulatory assets HIG manages total
$971,114,078.
Hill Investment Group is part of the Focus Financial Partners, LLC (“Focus LLC”) partnership.
Specifically, Hill Investment Group is a wholly-owned indirect subsidiary of Focus LLC. Ferdinand
FFP Acquisition, LLC is the sole managing member of Focus LLC. Ultimate governance of Focus
LLC is conducted through the board of directors at Ferdinand FFP Ultimate Holdings, LP. Focus
LLC is majority-owned, indirectly and collectively, by investment vehicles affiliated with Clayton,
Dubilier & Rice, LLC (“CD&R”). Investment vehicles affiliated with Stone Point Capital LLC
(“Stone Point”) are indirect owners of Focus LLC. Because Hill Investment Group is an indirect,
wholly-owned subsidiary of Focus LLC, CD&R and Stone Point investment vehicles are indirect
owners of Hill Investment Group.
Focus LLC also owns other registered investment advisers, broker-dealers, pension consultants,
insurance firms, business managers and other firms (the “Focus Partners”), most of which
provide wealth management, benefit consulting and investment consulting services to
individuals, families, employers, and institutions. Some Focus Partners also manage or advise
limited partnerships, private funds, or investment companies as disclosed on their respective
Form ADVs.
HIG is managed by Matt Hall and Nell Schiffer (“HIG Principals”), pursuant to a management
agreement between Hill Investment Group Partners, LLC and HIG. The HIG Principals serve as
officers and leaders of HIG and are responsible for the management, supervision, and oversight
of HIG.
As fiduciaries, we have duties of care and of loyalty to clients and are subject to obligations
imposed on us by the federal and state securities laws. As a result, clients have certain rights
that clients cannot waive or limit by contract. Nothing in HIG’s agreement with clients should be
interpreted as a limitation of HIG’s obligations under the federal and state securities laws or as
a waiver of any unwaivable rights clients possess.
Wealth Management Services
HIG provides investment management and financial planning services for clients through
service lines branded as Hillfolio, Hilltop Family Office, and Hill Investment Group. Hillfolio and
Hilltop Family Office are registered as DBA (doing business as) for HIG. HIG charges clients a fee
for services. Details under Item 5 Fees and Compensation.
HIG provides investment management and holistic wealth management services, including
financial planning and advising on tax, estate and insurance needs. HIG determines, with the
client, their investment objectives and investor risk profile. HIG works with clients to create
written investment objectives or a written investment policy statement based on the client’s
goals and risk tolerance. HIG uses investment and portfolio allocation software to evaluate
alternative portfolio designs. HIG evaluates the client's existing investments against the client's
goals. HIG works with new clients to develop a plan to transition from the client's existing
portfolio to the portfolio recommended by HIG. HIG monitors the client's portfolio holdings and
overall asset allocation strategy at least quarterly and holds regular review meetings with the
client regarding the account.
HIG typically creates a recommended portfolio of no-load mutual funds and ETFs and may use
model portfolios if the models match the client's investment goals. HIG allocates the client's
assets among various investments, considering the client’s overall risk profile. HIG’s
recommended funds generally follow a rules-based asset class investment philosophy with low
turnover. Although purchasing individual equity securities is never a part of our recommended
investment strategy, client portfolios may include individual equity securities with significant
unrealized capital gains or held for sentimental purposes. HIG manages portfolios on a
discretionary basis.
HIG may also recommend fixed income securities to advisory clients, consisting of fixed income
funds and or managed accounts of individual bonds. HIG requests discretionary authority from
advisory clients to manage equity and fixed income portfolios.
HIG implements investment advice on behalf of certain clients in held-away accounts that are
maintained at independent third-party custodians. These held-away accounts are often 401(k)
accounts, 529 plans and other assets that are not held at our primary custodian(s). The order
management system that HIG uses for held-away accounts is provided by Pontera Solutions,
Inc. HIG reviews, monitors, and manages these held-away
accounts in an integrated way with
client accounts held at our primary custodian(s). Further information about this service is
available in Item 5.
Portfolio Management Specifics for Institutional Intelligent Portfolios
Some clients may use the Institutional Intelligent Portfolios®(IIP) platform, an automated,
online investment management platform for independent investment advisors offered by
Schwab Performance Technologies (an affiliate of Charles Schwab & Co., “Schwab”). Schwab is a
FINRA member broker-dealer. HIG contracts Schwab for the technology platform, related trading,
and account management services for Hillfolio. The platform includes automated rebalancing
and tax-loss harvesting (if the client is eligible and elects).
IIP client portfolios are held in a brokerage account at Schwab. Schwab’s role with HIG client care
is limited to delivering the Disclosure Brochure and ensuring the platform operates as
described. Clients do not pay brokerage commissions to Schwab as part of the Institutional
Intelligent Portfolios® platform. HIG is independent of and not owned by, affiliated with,
sponsored or supervised by Schwab.
HIG, not Schwab, is the client’s investment advisor and primary point of contact.
HIG charges clients fees for our services under Item 5 Fees and Compensation. Clients do not
pay Schwab brokerage commissions as part of HIG services. Schwab does receive other
revenues, including (i) the profit earned by Charles Schwab Bank, SSB, a Schwab affiliate, on the
allocation to the Schwab Intelligent Portfolios Sweep Program described in the Schwab
Intelligent Portfolios Sweep Program Disclosure Statement; (ii) investment advisory and/or
administrative service fees (or unitary fees) received by Charles Schwab Investment
Management, Inc., a Schwab affiliate, from Schwab ETFs™ Schwab Funds®; (iii) fees received by
Schwab from mutual funds in the Schwab Mutual Fund Marketplace®; and (iv) remuneration
Schwab receives from the market centers where it routes ETF trade orders for execution.
Hill Institutional, ERISA
HIG provides advisory services to institutions, including participant-directed employee
retirement benefit plans. HIG analyzes the institution’s current investment platform and assists
the institution in recommending investment offerings. HIG recommends investment options to
achieve the institution’s objectives, provides sponsor education, and monitors the performance
of the institution’s investment vehicles. HIG recommends changes in the institution’s
investments as needed. HIG may provide participant-level education as a part of this service.
For ERISA plans custodied at Ascensus or ADP, HIG serves as the ERISA 3(21) fiduciary advisor to
the Plan. HIG consults with the Trustees on all aspects of the Plan, assists in building model
portfolio allocations and choosing investment options for the Plan, and provides advice to
participants. HIG has non-discretionary authority - meaning the client retains and exercises the
final decision-making authority for implementing or rejecting HIG’s recommendations. Because
of the nature services provided, these plans are not considered a part of regulatory AUM.
For ERISA plans, individual retirement accounts, or institutional accounts custodied at Schwab
or Fidelity, HIG serves as a fiduciary with discretionary authority - meaning HIG has the authority
to make the investment decisions in its sole discretion without the client’s prior approval. These
authorities are reflected in HIG’s Investment Advisory Agreement.
HIG is a fiduciary under the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”) with respect to investment management services and investment advice provided to
ERISA plan clients, including plan participants. HIG is also a fiduciary under section 4975 of the
Internal Revenue Code (the “IRC”) with respect to investment management services and
investment advice provided to individual retirement accounts (“IRAs”), ERISA plans, and ERISA
plan participants. As such, HIG is subject to specific duties and obligations under ERISA and the
IRC that include, among other things, prohibited transaction rules which are intended to prohibit
fiduciaries from acting on conflicts of interest. When a fiduciary gives advice that has a conflict
of interest, the fiduciary must either avoid or eliminate the conflict or rely upon a prohibited
transaction exemption (a “PTE”).
UPTIQ Treasury & Credit Solutions
HIG offers clients the option of obtaining certain financial solutions from unaffiliated third-
party financial institutions through UPTIQ Treasury & Credit Solutions, LLC (together with UPTIQ,
Inc. and its affiliates, “UPTIQ”). Please see Items 5 and 10 for a discussion of these services and
other important information.
Focus Risk Solutions
HIG helps our clients obtain certain insurance solutions from unaffiliated, third-party insurance
brokers by introducing clients to our affiliate, Focus Risk Solutions, LLC (“FRS”), a wholly owned
subsidiary of our parent company, Focus Financial Partners, LLC. Please see Items 5 and 10 for a
discussion of this service and other important information.
