What Investment Services and Advice Can You Provide Me?
We offer discretionary asset management on an ongoing basis for retail investors with investable assets of
$50,000 and over. Prior to investing your assets, we will determine your objectives by inquiring into your personal situation, financial goals, tax status, risk tolerance, and other pertinent factors, and recommend an investment strategy that helps you achieve your objectives. We will open an advisory account with a broker-dealer on your behalf to hold your assets as custodian. You will grant us discretionary authority to buy and sell investments in your account without obtaining your prior approval for each transaction. We act upon this authority using only the highest standard of conduct and care, while also abiding by any restrictions you put in place. We only select investments in which we are reasonably skilled and experienced. We primarily utilize mutual funds and exchange trade funds (ETFs) to create a diversified portfolio for you. When buying or selling investments, we will seek the best transactional result reasonably available under the given circumstances. We will then continually monitor your investments - a standard service - by comparing them with relevant benchmarks and by analyzing economic or market conditions. We will make adjustments to your current investment strategy if, after becoming aware of changes to your personal situation or financial goals, we determine prior recommendations are no longer appropriate for achieving your objectives.
We also offer one-time financial plans to retail investors. This means we will determine your needs and create a financial plan for you based on your needs. We will not open an advisory account, You will not grant us discretionary authority, and we will not monitor your plan once we provide it to you. You can then choose
to work with us or with another firm or financial professional to implement your plan.
For more information about our services review our Form ADV Part 2A Brochure (“Firm Brochure”) (Items
4, 7, 8, 12, 13, and 16).
What Fees Will I Pay You?
For our discretionary asset management, you will pay us a management fee - an annual percentage based on
the value of your assets under our management. This means that the more assets in your account, the more you will pay to us. You will generally pay the management fee in arrears at the end of every calendar quarter. What you pay to us will not change based on the types of investments we select or the number of transactions we make for your account. Our management fee will reduce the overall amount of your investments.
For one-time financial plans only, you will pay a one-time fixed fee - the amount of which will vary based on the complexity of your financial planning needs.
What Else Will I Pay For?
You will also pay other fees and costs in connection with the investments we select for your portfolio, such as sale loads and annual operating fees, and for the servicing of your advisory account, such as account termination fees and wire transfer fees. We do not receive a share of these fee and costs. You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
For more information about the fees and other costs you will pay, review our Firm Brochure (Item 5).
What Are Your Legal Obligations to Me When We Acting As My Investment Adviser? How Else Does Your Firm Make Money and What Conflicts of Interest Do You Have?
When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the investment advice we provide you. Here are some examples to help you understand what this means.
For training and educational events that we provide to our financial professionals, we receive support from our nonaffiliated strategic partners, including your custodian and the sponsors of the mutual funds and ETFs used as investments for your portfolio, in the form of discounted or fee-waived services and/or non-cash reimbursements to help offset some of the expenses we incur from hosting such events. We have an incentive to recommend the investments of these sponsors for your portfolio even if they might not align with your investment strategy.
As mentioned in “What fees will I pay you?”, the fee you pay us will increase as the amount of your assets under our management grows. Most of the independent representatives acting on our behalf as financial professionals receive a share of the fee you pay to us, which means we and our financial professionals have an incentive to recommend that you open an account and move your assets under our management when the products and services of another financial services provider might be better suited for you. We also have an incentive to recommend and place you in riskier investments that might result in higher returns for you - and higher fees paid to us - but might not align with your investment strategy.
For more information about our conflicts of interest review our Firm Brochure (Items 5, 10, 12, and 14).
How Do Your Financial Professionals Make Money?
Our financial professionals are either employees or independent representatives. We pay our employees an annual base salary. The employee serving as primary advisor for your account might make additional money in the form of (i) a percentage of the revenue that we earn each quarter from all the accounts that the employee services, and/or (ii) a percentage of year-over-year growth in the revenue that we earn from all the accounts that the employee services. We pay our independent representatives a share of the fee you pay to us.
Our financial professionals do not make money from providing one-time financial plans. For more about our financial professionals and how they make money, review our Firm Brochure (Items 5, 6, and 14) and the applicable Brochure Supplement for your financial professional(s).
Do You or Any of Your Financial Professionals Have Legal or Disciplinary History?
No. Visit adviserinfo.sec.gov
to research us and our financial professionals.
What Else Should I Consider?
Some of our financial professionals are also associated persons of a broker-dealer and can offer brokerage services to you where such brokerage services might be a better fit for you than our investment advisory services.
Please read our Firm Brochure before you appoint us as your investment adviser. It contains important information. You can also find an interactive version of this relationship summary, along with additional information about our investment advisory services, at our firm’s public website, www.hkfs.com
. You can request an up-to-date copy of this relationship summary by contacting us at 563-582-2855
, or toll-free at 800-791-8994