Item 5 – Fees and Compensation
Each Client must sign an Investment Advisory Agreement that details the responsibilities of AJ Wealth and the Client.
A. Fees for Advisory Services
Portfolio Management
Investment Advisory Fees are paid quarterly in advance 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 0.25% based on the following schedule:
Assets Under Management Annual Rate
First $0 to $10,000,000 1.00%
Next $10,000,001 to 0.75%
Next $20,000,001 to 0.50%
Next $50,000,001 and over 0.25%
Relationships with multiple objectives, specific reporting requirements, portfolio restrictions and other complexities
can be charged a higher fee or additional fixed fees. Portfolio Management fees can be negotiable at the sole
discretion of AJ Wealth based on several factors including, but not limited to, the amount of household assets to be
managed by AJ Wealth, the nature of the client relationship, or types of assets to be managed.
Investment Advisory Fees in the first quarter of service are prorated to the inception date of the account to the end
of the first quarter. Fees are negotiable at the discretion of the Adviser. The Client’s fees will take into consideration
the aggregate assets under management with Adviser. For billing purposes, AJ Wealth will “household” managed
asset accounts for the purpose of calculating the Portfolio Management fee. “Householding” is the aggregation of
immediate family members’ separate accounts managed by AJ Wealth as a single portfolio for consideration of a
lower fee breakpoint. All securities held in accounts managed by AJ Wealth will be independently valued by the
designated Custodian. AJ Wealth will not have the authority or responsibility to value portfolio securities.
Cash Positions
AJ Wealth, from time-to-time, considers cash as an asset class. At such times, all cash positions (money markets, etc.)
held in the advisory account shall be included as part of assets under management for purposes of calculating AJ
Wealth’s advisory fee. At any specific point in time, depending upon perceived or anticipated market conditions/events,
AJ Wealth could utilize cash positions for defensive purposes.
Financial Planning and Consulting Services
AJ Wealth offers financial planning or consulting services on a fixed fee basis ranging from $15,000 to $350,000. In
addition, fees can equal Investment Advisory Fees noted above applied to account balances or a minimum level of
assets under management, which can include cash from time-to-time. All fees for financial planning and consulting
services are negotiable depending on the nature and complexity of each Client’s circumstances and the services they
seek. An estimate for total cost and hours will be determined prior to establishing the advisory relationship. The
Advisor’s fee is exclusive of, and in addition to brokerage fees, transaction fees, and other related costs and expenses,
which will be incurred by the Client. However, the Adviser shall not receive any portion of these commissions, fees,
and costs.
Trustee/Power of Attorney Services
As described in Item 4 above, AJ Wealth provides this service as a client courtesy and does not charge a fee for this
service.
Private Funds
The specific fees AJ Wealth charges to each Private Fund are described in the offering documents of the relevant
Private Fund. Currently, AJ Wealth charges the AJW TA Debt Fund an management fee equal to 0.5% per annum,
payable quarterly in arrears, of the principal contributions made by the investors to the AJW TA Debt Fund. Investors
in the AJW TA Debt Fund will also indirectly bear the fees of the Underlying Fund, which may include performance
fees, management fees, transaction fees, and other fees. In the event that AJ Wealth advises a Client to invest in the
AJW TA Debt Fund as a part of AJ Wealth’s Portfolio Management services, AJ Wealth will waive its Investment
Advisory Fees solely with respect to the assets of such Client that are invested in the AJW TA Debt Fund; provided, that
for the avoidance of doubt, such Client will bear the management fee and other expenses of the AJW TA Debt Fund.
B. Fee Billing
Portfolio Management
Clients will be provided with a statement, at least quarterly, from the Custodian reflecting deduction of the
Investment Advisory 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 AJ Wealth 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.
Financial Planning and Consulting Services
Upon execution of the Financial Planning and Consulting Agreement, the Client has the option to authorize the
Financial Planning and Consulting fees to be billed and paid on a quarterly basis via an autopay method whereby AJ
Wealth is authorized to submit an ACH payment request to the account specified by the Client. The Client’s
authorization. The Client will be responsible for any payments that are not completed through the autopay method.
Private Funds
AJ Wealth deducts management fees from the Private Funds that it manages directly from the Private Funds, or by
issuing a capital call to the Private Funds’ investors in an amount equal to such investor’s respective share of the
management fees payable to AJ Wealth.
C. Other Fees and Expenses
Portfolio Management
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