The group scenegraph location supports the usual Katana attributes and inheritance rules for the children of the group.  KtoA also adds one additional control:

 

Note that in KtoA 1.x if the global setting for procedural expansion (set in the ArnoldGlobalSettings node) proceduralExpansion is set to at startup or flatten locations then all groups are always force-expanded.  This can incur a higher startup time to render but may result in faster renders overall depending on the scene.