Disclosures
WHY?
Financial companies choose how they share your personal information. Federal law
gives consumers the right to limit some but not all sharing. Federal law also requires
us to tell you how we collect, share, and protect your personal information. Please
read this notice carefully to understand what we do.
WHAT?
The types of personal information we collect and share depend on the product or service you have with us. This information can include:
- Social security number and income
- Assets, account balances and transaction history
- Investment experience and risk tolerance
When you are no longer our customer, we continue to share your information as described in this notice.
HOW?
All financial companies need to share customers' personal information to run their
everyday business. In the section below, we list the reasons financial companies can
share their customers' personal information; the reasons FDA chooses to share; and
whether you can limit this sharing.
Reasons we can share your personal information
Does FDA share?
Can you limit this sharing?
Who we are?
What we do?
To protect your personal information from unauthorized access and use,
we use security measures that comply with federal law. These measures
include computer safeguards and secured files and buildings.
We collect your personal information, for example, when you:
Open an account and enter into an investment advisory contract;
Give us your income, employment and contact information; Tell us about your investment or retirement portfolio; or Seek advice about your investments.
Federal law gives you the right to limit only
sharing for affiliates' everyday business purposes- information about your credit worthiness affiliates from using your information to market to you sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing.
Definitions
Companies related by common ownership or control. They can be
financial and nonfinancial companies.
FDA does not have any affiliates.
Companies not related by common ownership or control. They can
be financial and nonfinancial companies.
FDA does not share with nonaffiliates so they can market to you.
A formal agreement between nonaffiliated financial companies that
together market financial products or services to you.
FDA doesn't jointly market.
Form ADV: Part 2A
January 10, 2022This brochure provides information about the qualifications and business practices of Family Dynasty Advisors LLC. If you have any questions about the contents of this brochure, please contact us at 806-993-7023 or mike@familydynastyadvisors.com.
The information in this brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Additional information about Family Dynasty Advisors LLC is also available on the SEC’s website at www.adviserinfo.sec.gov.
Family Dynasty Advisors LLC is a registered investment advisor. Registration of an Investment Adviser does not imply any level of skill or training.
Item 2 – Material Changes
Item 3 -Table of Contents
Item 1 – Cover Page
Item 2 – Material Changes
Item 3 - Table of Contents
Item 4 – Advisory Business
Item 5 – Fees and Compensation
Item 6 – Performance-Based Fees and Side-By-Side Management
Item 7 – Types of Clients
Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss
Item 9 – Disciplinary Information
Item 10 – Other Financial Industry Activities and Affiliations
Item 11 – Code of Ethics, Participation or Interest in Client Transactions and Personal Trading
Item 12 – Brokerage Practices
Item 13 – Review of Accounts
Item 14 – Client Referrals and Other Compensation
Item 15 – Custody
Item 16 – Investment Discretion
Item 17 – Voting Client Securities
Item 18 – Financial Information
Item 19 – Requirements for State-Registered Advisers
Form ADV Part 2B – Brochure Supplements
Item 4 – Advisory Business
Family Dynasty Advisors LLC was founded in 2018 with its principal business located in Lubbock, Texas. The managing member and sole owner of the firm is Michael Caffey.
4.B Types of Services Offered
Family Dynasty Advisors LLC manages investment portfolios for individuals and businesses on a discretionary basis. The firm’s investment approach primarily focuses on investing through the use of open-end mutual funds, exchange traded funds, individual stocks and bonds, certificates of deposit, and treasury securities. The firm does not provide market timing advice.
4.C Tailoring Services
The firms’ services are tailored to the unique needs of each individual client. The firm will work with each client to determine their risk profile, goals and objectives. With this information, the firm will design an appropriate investment strategy that may be modified from time to time as circumstances change. The firm will continuously monitor the client’s portfolio holdings and the overall asset allocation strategy and will plan to hold periodic review meetings (via telephone, email, web based or in person) with the client regarding the account as necessary, and as the client desires. Clients may impose restrictions on investing in certain securities or types of securities.
4.D Wrap Fee Programs
4.E Assets Under Management
Item 5 – Fees and Compensation
5.A Fee Schedule
Assets Under Management ($)
Annual Rate (%)
Fee are collected in advance and determined by multiplying the blended annual rate by the account’s month-end market value which is then divided by 365 to determine a daily fee rate. This daily fee rate is then multiplied by the number of days in the applicable month. For example, if a client had an account value of $1,500,000, the formula would be as follows: ($500,000*.010)/365 + ($1,000,000*.008)/365 which results in a daily rate of $35.62. For a month with 30 days, that months fee would be $1,068.60 ($35.62*30 = $1,068.60).
The account market values of related client’s may be combined for the purposes of calculating a client’s applicable blended investment management fee. Fees may be negotiated if there are unique circumstances.
Each client relationship will be assessed a minimum annual fee of $500 if the firms applicable blended annual investment management fee, for the entire client portfolio of accounts, does not exceed the $500 annual minimum.
5.B How fees are charged
Fees are calculated on the account market value, including any cash or money market funds, as of the last business day of each month as determined by the account custodian. The custodian will debit the monthly fee directly from the account.
5.C Other fees or expenses
Fees paid to Family Dynasty Advisors LLC for investment management services are separate and distinct from any transaction or custodian fees, bid/ask spreads and other related costs and expenses which may be incurred by the client.
If Advisor buys shares of mutual funds, ETFs or other investment companies (such as closed-end funds) for Client, Client understands that these same assets may also be subject to additional embedded advisory or other fees and expenses, which are described in the prospectuses of those funds, paid by the funds but ultimately borne by the investor. Advisor will not receive fees from such mutual funds or other investment companies in connection with the services described in this Agreement.
5.D
When a client terminates an advisory agreement, the un-earned advisory fee for the month will be refunded on a pro-rata per diem basis. For example, if the management fee for the month of July was $100, the per diem calculation would be $3.23 ($100/31 days in July). If the clients’ account closed on July 15th, then the client would receive a refund of $51.68 ($3.23 * 16 days remaining in the month of July)
5.E
Family Dynasty Advisors LLC does not accept any compensation or commission for the purchase or sale of securities or other investment products.
Item 6 – Performance-Based Fees and Side-By-Side Management
Item 7 – Types of Clients
Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss
8.A Methods of Analysis
The firms’ analysis focuses on the belief that by minimizing the volatility of a diversified investment portfolio, we can maximize the positive impact that is attainable from compounding investment returns over the long-term. The firm utilizes technical & statistical analytics along with macro-economic factors to construct a client’s portfolio. This information is primarily obtained from information available to the public. Even with an abundance of analytical data, Clients need to understand that investing in securities can result in a significant decline of their market value as well as the risk of losing their entire principle investment.
8.B Investment Strategy
The firms’ portfolio management services are structed to maximize investment performance will mitigating market volatility. The firm embraces both short-term and long-term investment strategies. Portfolios are normally diversified but depending on market conditions, a clients’ portfolio may experience a lack of diversification from time to time. We utilize a combination of both passively and actively managed mutual funds, exchange-traded funds, individual stocks, bonds, CD’s and treasuries to achieve the most appropriate, risk adjusted return, for our clients.
8.C Risk of Loss
- Financial Risk: which is the risk that the companies we recommend to you perform poorly, which affect the price of your investment.
- Market Risk: which is the risk that the Stock Market will decline, decreasing the value of the securities we recommend to you with it.
- Inflation Risk: which is the risk that the rate of price increases in the economy deteriorates the returns associated with the stock.
- Political and Governmental Risk: which is the risk that the value of your investment will be affected by the introduction of new laws or regulations.
- Interest Rate Risk: which is the risk that the value of the bond investments we recommend to you will fall if interest rates rise.
- Default Risk: which is the risk that a bond issuer is unable to pay the contractual interest or principal on the bond in a timely manner or at all.
- Manager Risk: which is the risk that an actively managed mutual fund’s investment adviser will fail to execute the fund’s stated investment strategy.
- Industry Risk: which is the risk that a group of stocks in a single industry will decline in price due to adverse developments in that industry, decreasing the value of mutual funds that are significantly invested in that industry. The Advisor shall not be liable for any loss incurred with respect to the Account, except where such loss directly results from such party’s gross negligence, willful misconduct or fraud or as otherwise provided for by federal or state law. It is specifically agreed that Advisor is not responsible for any errors, omissions, acts or failures to act by any unaffiliated third-party providing services to Client with respect to the Account.
Item 9 – Disciplinary Information
9.A Criminal or Civil Actions
9.B Administrative Proceedings
9.C Self-regulatory Organization (SRO) Proceedings
Item 10 – Other Financial Industry Activities and Affiliations
10.A Registration as a Broker/Dealer or Broker/Dealer Representative
10.B Registration as a Futures Commission Merchant, Commodity Pool Operator, or a Commodity Trading Advisor
10.C Registration Relationships and Possible Conflicts of Interests
10.D Selection of Other Advisers or Managers
Item 11 – Code of Ethics, Participation or Interest in Client Transactions and Personal Trading
11.A Code of Ethics
We strive to comply with applicable laws and regulations governing our practices. Our goal is to protect our clients’ interests and to demonstrate our commitment to our fiduciary duties of honesty, good faith, and fair dealing. All persons associated with our firm are expected to adhere strictly to these guidelines. Persons associated with our firm are also required to report any violations of our Code of Ethics. Additionally, we maintain and enforce written policies reasonably designed to prevent the misuse or dissemination of material, non-public information about you or your account holdings by persons associated with our firm.
Clients or prospective clients may obtain a copy of our Code of Ethics by contacting us at the telephone number on the cover page of this brochure.
11.B Recommendations Involving Material Financial Interests
11.C Investing Personal Money in the Same Securities as Clients
11.D Trading Securities At/Around the Same Time as Clients’ Securities
Item 12 – Brokerage Practices
12.A.1 Research and Other Soft Dollar Benefits
12.A.2 Brokerage for Client Referrals
12.A.3 Directed Brokerage
12.B Aggregate Purchases or Sales
If the firm buys or sells the same securities on behalf of more than one client, the firm may, but would be under no obligation to aggregate or bundle the trade to the extent permitted by applicable law and regulations. If the firm can bundle a trade while maintaining its fiduciary responsibility to each client, then the firm will do so. Our client’s benefit with every instance the firm can bundle its trades because the fees and expenses, related to its trading activity, can be allocated across multiple accounts on a pro rata allocation based on capital investment of each participating client portfolio.
Item 13 – Review of Accounts
13.A Portfolio Reviews
13.B Review Triggers
13.C Written Statements
Item 14 – Economic Benefit and Other Compensation
14.A Economic Benefit
14.B Compensation
Item 15 – Custody
Item 16 – Investment Discretion
Family Dynasty Advisors provides discretionary services to clients. The Investment Advisory Agreement established with each client outlines the discretionary authority for trading. Where investment discretion has been granted, the firms’ advisors will manage the client’s account and make investment decisions without consultation with the client as to what securities to buy or sell, when the securities are to be bought or sold for the account, the total amount of the securities to be bought/sold, or the price per share.
Item 17 – Voting Client Securities
Family Dynasty Advisors does not vote proxies on behalf of advisory clients. Clients retain the responsibility for receiving and voting proxies (that are received directly from the account custodian or transfer agent) for all securities maintained in client portfolios. We may provide advice to clients regarding the clients’ voting of proxies.
Item 18 – Financial Information
18.A Balance Sheet
18.B Financial Conditions Reasonably
18.C Bankruptcy Petitions
Item 19 – Requirements for State-Registered Advisers
19.A Principal Executive Officers
19.B Other Businesses
19.C How Performance-based Fees are Calculated
19.D Material Disciplinary Disclosures
No person at Family Dynasty Advisors has been found liable in an arbitration claim or been found liable in a civil, self-regulatory organization, or administrative proceeding that is material to the client’s evaluation of the firm or its management.
19.E Material Relationships
Form ADV: Part 2B
Brochure Supplements - January 10, 2022Item 2- Educational Background and Business Experience
Michael Caffey: Born 1971
Formal Education: MBA in Finance from Texas State University in 2002
BBS in Economics from Tarleton State University in 1997
BBA in Business from Tarleton State University in 1997
Industry Certification: Certified Private Wealth Advisor (CPWA) is administered by the Investment & Wealth Institute and is an advanced professional certification for advisors who serve high-net-worth clients. It’s designed for seasoned professionals who take a holistic and multidisciplinary approach to address the sophisticated needs of clients with a minimum net worth of $5 million. This certification requires 40 hours of continuing education to be completed every two years.
Employment History: Family Dynasty Advisors, LLC – Managing Member 2018-present
PlainsCapital Wealth Management – Wealth Strategist 2009-2018
First Financial Asset Management – Employee Benefits Administrator 2005-2009
Mandi Applegate: Born 1978
Formal Education: Mrs. Applegate has no formal education after high school.
Industry Certification: Investment Adviser in the State of Texas
Texas General Lines Agent – Life, Accident, Health and HMO. This license requires 24 hours of continuing education every 2 years.
Non‐Resident Agent in Georgia – Life, Accident, and Health. This license requires 24 hours of continuing education every 2 years.
State of Texas Notary Public – commission Expires 10/20/2025
Employment History: Family Dynasty Advisors – Director of Operations – October 2021 – Present
Concord Medical Group – Accounting – October 2020 – October 2021
Nylife Securities – Registered Rep – May 2018 – October 2020
Alpha Capital Strategies – Director of Services – January 2017 – October 2020
Kuykendall & Schneider Inc – Back Office Assistant – February 2016 – December 2016