A. Description of the Advisory Firm
HF Advisory Group, LLC (hereinafter “HFA Group”) is a corporation organized in the
State of Maryland. The firm was formed in January 2009, became registered as an
investment advisor in 2020, and the principal owner is Raymond L Hobson.
B. Types of Advisory Services
Portfolio Management Services
HFA Group offers ongoing portfolio management services based on the individual goals,
objectives, time horizon, and risk tolerance of each client. HFA Group creates an
Investment Policy Statement for each client, which outlines the client’s current situation
(income, tax levels, and risk tolerance levels). Portfolio management services include, but
are not limited to, the following:
• Investment strategy • Personal investment policy
• Asset allocation • Asset selection
• Risk tolerance • Regular portfolio monitoring
HFA Group evaluates the current investments of each client with respect to their risk
tolerance levels and time horizon. HFA Group will require discretionary authority from
clients in order to select securities and execute transactions without permission from the
client prior to each transaction. HFA utilizes Riskalyze, a software which is used to
calculate a client’s risk tolerance.
HFA Group seeks to provide that investment decisions are made in accordance with the
fiduciary duties owed to its accounts and without consideration of HFA Group’s
economic, investment or other financial interests. To meet its fiduciary obligations, HFA
Group attempts to avoid, among other things, investment or trading practices that
systematically advantage or disadvantage certain client portfolios, and accordingly, HFA
Group’s policy is to seek fair and equitable allocation of investment
opportunities/transactions among its clients to avoid favoring one client over another
over time. It is HFA Group’s policy to allocate investment opportunities and transactions
it identifies as being appropriate and prudent among its clients on a fair and equitable
basis over time.
Financial Planning
Financial plans and financial planning may include but are not limited to: investment
planning; life insurance; tax concerns; retirement planning; college planning; and
debt/credit planning.
In offering financial planning, a conflict exists between the interests of the investment
adviser and the interests of the client. The client is under no obligation to act upon the
investment adviser's recommendation, and, if the client elects to act on any of the
recommendations, the client is under no obligation to effect the transaction through the
investment adviser. This statement is required by California Code of Regulations,
10 CCR
Section 260.235.2.
Services Limited to Specific Types of Investments
HFA Group generally limits its investment advice to mutual funds, fixed income
securities, real estate funds (including REITs), insurance products including annuities,
equities, ETFs (including ETFs in the gold and precious metal sectors), treasury inflation
protected/inflation linked bonds, non-U.S. securities, venture capital funds and private
placements. HFA Group may use other securities as well to help diversify a portfolio
when applicable.
Written Acknowledgement of Fiduciary Status
When we provide investment advice to you regarding your retirement plan account or
individual retirement account, we are fiduciaries within the meaning of Title I of the
Employee Retirement Income Security Act and/or the Internal Revenue Code, as
applicable, which are laws governing retirement accounts. The way we make money
creates some conflicts with your interests, so we operate under a special rule that requires
us to act in your best interest and not put our interest ahead of yours. Under this special
rule’s provisions, we must:
• Meet a professional standard of care when making investment recommendations
(give prudent advice).
• Never put our financial interests ahead of yours when making recommendations
(give loyal advice).
• Avoid misleading statements about conflicts of interest, fees, and investments.
• Follow policies and procedures designed to ensure that we give advice that is in
your best interest.
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
C. Client Tailored Services and Client Imposed Restrictions
HFA Group offers the same suite of services to all of its clients. HFA utilizes redtail to
document the Income & Tax levels. HFA utilizes Riskalyze for risk tolerance. Clients may
impose restrictions in investing in certain securities or types of securities in accordance
with their values or beliefs. However, if the restrictions prevent HFA Group from
properly servicing the client account, or if the restrictions would require HFA Group to
deviate from its standard suite of services, HFA Group reserves the right to end the
relationship.
D. Wrap Fee Programs
A wrap fee program is an investment program where the investor pays one stated fee that
includes management fees, transaction costs, fund expenses, and other administrative
fees. HFA Group does not participate in any wrap fee programs.
E. Assets Under Management
HFA Group has the following assets under management:
Discretionary Amounts: Non-discretionary Amounts: Date Calculated:
$189,119,492.00 $0 December 2023