Form ADV Part 2A – Disclosure Brochure
Effective: September 29, 2016
This Form ADV2A (“Disclosure Brochure”) provides information about the qualifications and business practices of Huntwicke Advisors, LLC (“Huntwicke Advisors” or the “Advisor”) formerly Phalanx Wealth Management, LLC. If you have any questions about the contents of this Disclosure Brochure, please contact us at (978) 887-5981 or by email at .
Huntwicke Advisors is a registered investment advisor located in the Commonwealth of Massachusetts. The information in this Disclosure Brochure has not been approved or verified by the U.S. Securities and Exchange Commission (“SEC”) or by any state securities authority. Registration of an investment advisor does not imply any specific level of skill or training. This Disclosure Brochure provides information about Huntwicke Advisors to assist you in determining whether to retain the Advisor.
Additional information about Huntwicke Advisors and its advisory persons are available on the SEC’s website at www.adviserinfo.sec.gov by searching for our firm name or by our CRD# 149991.
Huntwicke Advisors, LLC
6 Park Street, Topsfield, MA 01983
Phone: (978) 887-5981
www.huntwicke.com
Item 2 – Material Changes
Material Changes
· Phalanx Wealth Management, LLC d/b/a Huntwicke Capital Group has changed the firm name to Huntwicke Advisors, LLC.
· Huntwicke Advisors, LLC is transitioning as a state registered firm to a U.S. Securities and Exchange Commission (“SEC”) registered firm.
Future Changes
From time to time, we may amend this Disclosure Brochure to reflect changes in our business practices, changes in regulations and routine annual updates as required by the securities regulators. This complete Disclosure Brochure or a Summary of Material Changes shall be provided to each Client annually and if a material change occurs in the business practices of Huntwicke Advisors.
At any time, you may view the current Disclosure Brochure on-line at the SEC’s Investment Adviser Public Disclosure website at http://adviserinfo.sec.gov by searching for our firm name or by our CRD# 149991. You may also request a copy of this Disclosure Brochure at any time, by contacting us at (978) 887-5981 or by email at .
Item 3 – Table of Contents
Item 1 – Cover Page 1
Item 2 – Material Changes 2
Item 3 – Table of Contents 3
Item 4 – Advisory Services 4
A. Firm Information 4
B. Advisory Services Offered 4
C. Client Account Management 5
D. Wrap Fee Programs 5
E. Assets Under Management 5
Item 5 – Fees and Compensation 6
A. Fees for Advisory Services 6
B. Fee Billing 6
C. Other Fees and Expenses 7
D. Advance Payment of Fees and Termination 7
E. Compensation for Sales of Securities 7
Item 6 – Performance-Based Fees 7
Item 7 – Types of Clients 8
Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss 8
A. Methods of Analysis 8
B. Risk of Loss 8
Item 9 – Disciplinary Information 9
Item 10 – Other Financial Activities and Affiliations 9
Item 11 – Code of Ethics, Participation in Client Transactions and Personal Trading 9
A. Code of Ethics 9
B. Personal Trading with Material Interest 10
C. Personal Trading in Same Securities as Clients 10
D. Personal Trading at Same Time as Client 10
Item 12 – Brokerage Practices 10
A. Recommendation of Custodian[s] 10
B. Aggregating and Allocating Trades 11
Item 13 – Review of Accounts 11
A. Frequency of Reviews 11
B. Causes for Reviews 11
C. Review Reports 11
Item 14 - Client Referrals and Other Compensation 12
A. Compensation Received by Huntwicke Advisors 12
B. Client Referrals from Solicitors 12
Item 15 – Custody 12
Item 16 – Investment Discretion 12
Item 17 – Voting Client Securities 13
Item 18 – Financial Information 13
Item 19 – Requirements for State Registered Advisors 13
ADV 2B – Brian Woodland 15
ADV 2B – Peter Mulholland 18
Privacy Policy 21
Item 4 – Advisory Services
A. Firm Information
Huntwicke Advisors, LLC (“Huntwicke Advisors” or the “Advisor”) formerly Phalanx Wealth Management, LLC is a registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”), which is organized as a Limited Liability Company (“LLC”) under the laws of Massachusetts. Huntwicke Advisors was founded in 2009 by Brian A. Woodland (President) and is owned by Huntwicke Capital Group, LLC formerly Phalanx Partners, LLC, the parent company and operated by Mr. Woodland and Peter E. Mullholland (Chief Investment Officer and Chief Compliance Officer). This Disclosure Brochure provides information regarding the qualifications, business practices, and the advisory services provided by Huntwicke Advisors.
B. Advisory Services Offered
Huntwicke Advisors offers investment advisory services to individuals, high net worth individuals, trusts, estates and other pooled investment vehicles in Massachusetts and other states (each referred to as a “Client”).
Investment Management Services
Huntwicke Advisors provides customized investment advisory solutions for its Clients. This is achieved through continuous personal Client contact and interaction while providing both discretionary and non-discretionary investment management and consulting services. Huntwicke Advisors works with each Client to identify their investment goals and objectives as well as risk tolerance and financial situation in order to create a portfolio strategy. Huntwicke Advisors will then construct a portfolio, primarily consisting of mutual funds and exchange-traded funds (“ETFS”). In addition, from time-to-time, Huntwicke Advisors may utilize individual stocks and bonds, United States government securities, inverse exchange traded funds and other investments as necessary to achieve the Client’s investment goals.
Huntwicke Advisors’s investment strategy is primarily long-term focused, but the Advisor may buy, sell or re-allocate positions that have been held less than one year to meet the objectives of the Client or due to market conditions. Huntwicke Advisors will construct, implement and monitor the portfolio to ensure it meets the goals, objectives, circumstances, and risk tolerance agreed to by the Client. Each Client will have the opportunity to place reasonable restrictions on the types of investments to be held in their respective portfolio, subject to the acceptance by the Advisor.
Huntwicke Advisors evaluates and selects investments for inclusion in Client portfolios only after applying their internal due diligence process. Huntwicke Advisors may recommend, on occasion, redistributing investment allocations to diversify the portfolio. Huntwicke Advisors may recommend specific positions to increase sector or asset class weightings. The Advisor may recommend employing cash positions as a possible hedge against market movement. Huntwicke Advisors may recommend selling positions for reasons that include, but are not limited to, harvesting capital gains or losses, business or sector risk exposure to a specific security or class of securities, overvaluation or overweighting of the position[s] in the portfolio, change in risk tolerance of Client, generating cash to meet Client needs, or any risk deemed unacceptable for the Client’s risk tolerance.
Huntwicke Advisors will provide investment advisory services and portfolio management services and will not provide securities custodial or other administrative services. At no time will Huntwicke Advisors accept or maintain custody of a Client’s funds or securities, except for authorized deduction of the Advisor’s fees. All Client assets will be managed within their designated brokerage account or pension account, pursuant to the Client investment advisory agreement.
Pension Consulting
Huntwicke Advisors offers pension-consulting services to various types of pension and profit sharing plans. The Advisor gathers and review extensive information on each Client and each plan. Huntwicke Advisors’ pension consulting services includes, but is not limited to, plan feasibility, plan design, and plan review, document preparation, and assistance with regulatory agencies. In addition, Huntwicke Advisors may assist in the selection of investment options, monitoring of investment performance, plan reporting, educational support and general advice to the plans’ participants.
Financial Planning and Consulting Services
Huntwicke Advisors will typically provide a variety of financial planning services to individuals and families, pursuant to a written financial planning or consulting agreement. Services are offered in several areas of a Client’s financial situation, depending on their goals, objectives and financial situation.
Generally, such financial planning services will involve preparing a financial plan or rendering a financial consultation for clients based on the Client’s financial goals and objectives. This planning or consulting may encompass one or more areas of need, including, but not limited to investment planning, retirement planning, personal savings, education savings and other areas of a Client’s financial situation.
A financial plan developed for or financial consultation rendered to the Client will usually include general recommendations for a course of activity or specific actions to be taken by the Client. For example, recommendations may be made that the Client start or revise their investment programs, commence or alter retirement savings, establish education savings and/or charitable giving programs. Huntwicke Advisors may also refer Clients to an accountant, attorney or other specialist, as appropriate for their unique situation. For certain financial planning engagements, the Advisor will provide a written summary of Client’s financial situation, observations, and recommendations. For consulting or ad-hoc engagements, the Advisor may not provide a written summary. Plans or consultations are typically completed within six months of contract date, assuming all information and documents requested are provided promptly.
Financial planning and consulting recommendations may pose a potential conflict between the interests of the Advisor and the interests of the Client. For example, a recommendation to engage the Advisor for investment management services or to increase the level of investment assets with the Advisor would pose a conflict, as it would increase the advisory fees paid to the Advisor. Clients are not obligated to implement any recommendations made by the Advisor or maintain an ongoing relationship with the Advisor. If the Client elects to act on any of the recommendations made by the Advisor, the Client is under no obligation to effect the transaction through the Advisor.
C. Client Account Management
Prior to engaging Huntwicke Advisors to provide investment advisory services, each Client is required to enter into one or more advisory agreements with the Advisor that define the terms, conditions, authority and responsibilities of the Advisor and the Client. These services may include:
· Establishing an Investment Strategy – Huntwicke Advisors, in connection with the Client, will develop an investment strategy targeted to achieve the Client’s investment goals and objectives.
· Asset Allocation – Huntwicke Advisors will develop a strategic asset allocation investment strategy that is targeted to meet the investment objectives, time horizon, financial situation and tolerance for risk for each Client.
· Portfolio Construction – Huntwicke Advisors will develop a portfolio for the Client that is intended to meet the stated goals and objectives of the Client.
· Investment Management and Supervision – Huntwicke Advisors will provide investment management and ongoing oversight of the Client’s portfolio.
D. Wrap Fee Programs
Huntwicke Advisors does not manage or place Client assets into a wrap fee program. Investment management services are provided directly by Huntwicke Advisors.
E. Assets Under Management
As of September 21, 2016, Huntwicke Advisors manages the following assets:
Discretionary Assets / $101,044,617Non-Discretionary Assets / $16,025,716
Total / $117,070,333
Clients may request more current information at any time by contacting the Advisor.
Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the Advisor. Each Client shall sign one or more advisory agreements that detail the responsibilities of Huntwicke Advisors and the Client.
A. Fees for Advisory Services
Investment Management Services and Pension Consulting
Investment advisory fees for portfolio management and pension consulting are paid quarterly, in advance of each calendar quarter, pursuant to the terms of the investment advisory agreement. Investment advisory fees are based on the market value of assets under management at the end of each calendar quarter. Investment advisory fees range from 1.00% to 0.50% based on the following schedule:
Assets Under Management / Annual RateFirst $500,000 / 1.00%
Next $500,000 / 0.80%
Next $2,000,000 / 0.70%
Next $1,000,000 / 0.60%
Next $1,000,000 / 0.50%
Over $5,000,000 / Negotiated
The investment advisory fee in the first quarter of service is prorated to the inception date of the account[s] to the end of the first quarter. At the end of the first quarter, the client is billed for the first quarter’s prorated fee as well as the next quarter’s fee. Fees are negotiable at the sole discretion of the Advisor. The Client’s fees will take into consideration the aggregate assets under management with Advisor. All securities held in accounts managed by Huntwicke Advisors will be independently valued by the designated Custodian. Huntwicke Advisors will not have the authority or responsibility to value portfolio securities.
Financial Planning and Consulting Services
Huntwicke Advisors offers financial planning or consulting services on an hourly for generally around $150 per hour, which may be negotiable depending on the nature and complexity of each Client’s circumstances. The hourly-fees will be based on the complexity of the service that is anticipated to be necessary for the particular client. An estimate for total hours and cost will be determined prior to establishing the advisory relationship. Generally, the Advisor bills one half of the estimate in advance and the remainders after the services are performed.
The Advisor’s fee is exclusive of, and in addition to, brokerage commissions, transaction fees, and other related costs and expenses, which may be incurred by the Client. However, the Advisor shall not receive any portion of these commissions, fees, and costs.
B. Fee Billing
Investment Management Services and Pension Consulting
Investment advisory fees for portfolio management and pension consulting will be calculated by the Advisor or its delegate and deducted from the Client’s account[s] at the Custodian. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted from the Client’s account[s] at the respective quarter-end date. The amount due is calculated by applying the quarterly rate (annual rate divided by 4) to the total assets under management with Huntwicke Advisors at the end of each quarter. Clients will be provided with a statement, at least quarterly, from the Custodian reflecting deduction of the investment advisory fee. In addition, the Advisor will provide the Client a report itemizing the fee, including the calculation period covered by the fee, the account value and the methodology used to calculate the fee. It is the responsibility of the Client to verify the accuracy of these fees as listed on the Custodian’s brokerage statement as the Custodian does not assume this responsibility. Clients provide written authorization permitting Huntwicke Advisors to be paid directly from their accounts held by the Custodian as part of the investment advisory agreement and separate account forms provided by the Custodian.