This section of the brochure tells you about our business, including ownership and a
description of the services we offer.
Ownership
BAC Capital Advisors, LLC is referred to in this document as “BAC Capital Advisors,” “the
Company,” “us,” “we,” or “our.” In this document we refer to current and prospective clients
of BAC Capital Advisors as “you,” “client,” or “your.” BAC Capital Advisors was created in
2001 and is owned by its parent company, First Hill Trust Company, which is wholly owned
and controlled by Timothy Hill.
Types of Advisory Services
BAC Capital Advisors, LLC (“Advisors”) provides advisory services to clients in several
different ways. These advisory services fall into two basic categories: Managed accounts for
individuals and model portfolios prepared for pension plans.
Managed Accounts
Some clients enter into a written Investment Advisory Agreement where BAC Capital
Advisors and our investment adviser representatives provide asset management services
on a continuous and ongoing basis guided by the individual needs of the client. Using the
information provided by you, the investment advice provided to you is tailored to your
individual situation. We regularly inquire about, and you are responsible for providing,
information about your investment goals, time horizon, and risk tolerance. These
investment supervisory services are generally not provided to all of your holdings or net
worth but rather only to assets specifically designated by you and agreed to by us as
managed assets.
Model Portfolios Prepared for Pension Plans
Some of our clients are pension or retirement plans. We provide asset allocation and fund
selection services to these plans. As part of these services, we may make recommendations
for custodial and clearing agents, or we may use your current provider. We are responsible
for the design and construction of these model portfolios using the universe of funds that is
available through the custodian or clearing agent you have selected.
For each plan participant, we provide quarterly investment updates and model portfolio
allocations from the list of mutual funds that are included in the plan.
Self-directed Pension Plan Accounts
Depending upon your pension plan design, you may have the option to self-direct, or
choose and manage your own investments for your own account within the pension plan.
When you have chosen to manage your own account, we will not manage, oversee, or make
re-balancing transactions for your account.
Some clients are provided a written plan that may include a personal balance sheet and
certain projections. Any reports, financial statement projections, and analyses are intended
exclusively for your use in developing and implementing your investment plan. In view of
this limited purpose, the statements should not be considered complete financial
statements. BAC Capital Advisors will not audit, review, or compile financial statements,
and accordingly, we will not express an opinion or other form of assurance on them,
including the reasonableness of assumptions and other data on which any prospective
financial statements are based. It is likely that there will be material differences between
projected and actual results because events vary and circumstances frequently do not
occur as expected.
Our analyses will be highly dependent on certain economic assumptions about the future.
Therefore, you should establish familiarity with historical data regarding key assumptions
such as inflation and investment rates of return, as well as an understanding of how
significantly these assumptions affect the results of our analyses. We may counsel you as to
the consistency of your assumptions with relevant historical data, but we will not express
any assurance as to the accuracy or reasonableness of your specific data and assumptions.
You are ultimately responsible for the assumptions and personal data upon which our
procedures and projections are based. The investment plan assumptions and reports are
primarily a tool to alert you to certain possibilities. The reports are not intended to, nor do
they provide any guarantee about future events including your investment returns. The
implementation of the plan is solely your responsibility.
The plans provided for some of our clients do not address all potential aspects of financial
planning. Risk management issues such as life, health, disability, and long-term care
insurance are not typically addressed, and you are encouraged to seek professional counsel
in these areas.
Use of Sub-Advisors
In some situations we use the services of another registered investment advisor (Sub-
Advisor) to assist us in the management of client accounts. This Sub-Advisor is reviewed
and overseen by us and provides us with expertise in a particular investment style, market
segment or investment strategy.
Selection of Other Advisors
In some situations we recommend that all or a portion of a client’s investment portfolio be
actively managed by another investment advisor(s). These other advisors are reviewed
and recommended by us to provide clients with expertise in a particular investment style,
market segment or investment strategy. We consider your individual circumstances, needs,
and objectives and recommend other advisors when recommending other advisors. The
other advisors managing portions of your portfolio will charge a fee for these services and
these fees are distinct, separate, and in addition to, the fees we charge. A detailed
description of the other advisors’ services and fees is provided in their disclosure brochure.
Our role is to oversee these other advisors to assure they perform their services as
expected.
Types of Investments Used
We consider many different types of securities when formulating the investment advice we
will give to you. If you come to us with existing investments, we evaluate them with respect
to your financial goals, risk tolerance, and investment time horizon. Depending upon your
situation, your account(s) managed by us may contain individual stocks, corporate and/or
government bonds, municipal bonds, mutual funds, exchange traded funds (“ETFs”),
options, warrants, alternative investments or private placements.
Pension plans often determine the specific securities that can be used in the plan. In these
cases our advice will be limited to the securities available to you.
We work primarily with retirement plans and participants and as a matter of practice
recommend mutual funds and exchange traded funds (ETFs) only. We will effect individual
securities only in limited circumstances and at a client’s request.
Tailored Services and Investment Restrictions
We attempt to tailor your investment portfolio to your situation as you have described it to
us. This is why it is so important that you let us know about changes to your financial
situation, goals, or investment time horizon. You may impose restrictions on investing in
certain securities or types of securities. You must clearly identify these restrictions in
writing to us.
Retirement Plan Rollovers
Clients must be sure to review all of their options before they begin the rollover process.
Typically they have four options, which include:
1. Leave their money in the existing employer’s plan, if permitted.
2. Roll the money over into their new employer’s plan if the new plan allows.
3. Cashing out the account balance, which could result in certain taxes.
4. Rolling the account over into an IRA.
BAC may receive additional fees if the client chooses to enroll in the IRA we recommend.
Thus, we have an economic incentive to recommend this rollover into an IRA not because it is
solely in the client’s best interest, but because we have an economic incentive to do so. BAC
Capital Advisors has taken the necessary steps to manage this conflict of interest.
We have implemented the Impartial Conduct Standards for our firm:
• BAC will only make investment advice that is in the client’s best interest.
• We will only charge reasonable fees related to the rollover of client funds.
• Make no misleading statements about the rollover and related investment
transactions.
• Always act with undivided loyalty towards the client when making any
recommendations.
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
Assets Under Management
As of December 31, 2023, BAC Capital Advisors managed $287,900,836 of client assets. Of this
amount, $213,090,047 is managed on a discretionary basis and approximately $74,810,789
on a non-discretionary basis.